Platform feature
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Funding Souq |
Manafa Capital |
What will I be investing in?
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Through Funding Souq you will be financing (giving a loan) to SMEs to support their working capital needs.
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Investors provide startups with invoice financing and other credit facilities through Manafa.
Separately, Manafa also has an equity crowdfunding arm which gives you access to ownership stakes in SMEs |
Who can invest?
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Funding Souq is the only crowdfunding platform in the Middle East that is regulated in 2 countries – Saudi Arabia & the UAE.
Funding Souq’s KSA platform can onboard only Saudi nationals and residents as per the Saudi Central Bank regulation.
Funding Souq’s Global (UAE) platform can onboard nearly all nationalities, allowing almost anyone to invest in UAE-based businesses.
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Only Saudi nationals and residents can invest on Manafa |
What is the minimum investment?
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The minimum investment is SAR / AED 1,000, which approximates to $270. |
The minimum investment in both its equity and debt finance platforms is SAR 1,000.
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What is the maximum investment?
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In Saudi Arabia
Retail investors can invest up to SAR 250,000 per year.
In the UAE
Retail investors can invest up to AED 365,000 per year and AED 36,000 per business |
For its debt financing platform
retail investors can invest up to SAR 250,000 per year.
For its equity platform
retail investors are allowed to buy up to SAR 25,000 in shares per company. Those rated as qualified investors by the platform and institutional investors are allowed to exceed this limit.
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What returns can investors expect?
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Investors can expect a net yield of up to 15% and an internal rate of return (IRR) of up to 30%
To understand the difference between yield and IRR read our blog here.
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Investors in its debt finance platform can expect net annual yield / IRR of up to 15%.
There is no stated rate of return in its equities investment arm, as these are variable and unique to each company.
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When are investors repaid?
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On a monthly basis, allowing for reinvestment and compounding for maximum return. |
Investors typically get paid at the end of the period which ranges from 90 to 180 days.
On the equity side, investor repaid through periodic dividends or at exit (sale of the company)
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What are the fees to the investors?
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The returns displayed on the platform are net of any applicable fees. The presented return is what you should expect to earn. |
Manafa takes a management fee of 20% of the profit made on debt investments (excluding VAT).
Manafa does not charge a fee on equity investments upon registration. There is no stated fee upon exiting a company.
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Does the platform have an Auto-Investment option?
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Yes.
Once enabled, the Auto-Invest system will automatically allocate your deposited funds or repayments into opportunities based on your auto investing settings.
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Yes.
Manafa’s debt investment platform has an Auto-invest system that, if enabled, would allocate your deposited funds according to your criteria, preferences and investment strategy.
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Is the platform Shariah-compliant
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Yes, you can find out more details about our Shariah Certficate |
Yes
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