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Platform feature
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Funding Souq
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Sukuk Capital Platform
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As an investor, what will I be investing in?
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- SMEs through working capital or fixed asset finance.
- SMEs apply to Funding Souq to fulfill their growth plans via working capital finance or fixed asset finance.
In both cases the availed financing is intended to support the business’s growth.
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- Sukuk (Islamic Bonds) that are issued on behalf of companies (most of which are SMEs) seeking working capital finance, project finance and asset purchase finance.
- To understand the difference between Sukuk and traditional bonds, read our blog here.
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| Who can invest? |
- Funding Souq is the only debt based 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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To invest on the Sukuk platform, you must be a Saudi national or a Saudi resident with a valid ID and a local Saudi bank account. |
| What is the minimum investment? |
The minimum investment is SAR / AED 1,000, which approximates to $270. |
The minimum investment is SAR 1,000 |
| What is the maximum investment? |
In Saudi Arabia:
- Retail investors can invest up to 250,000 per year.
In the UAE:
- retail investors can invest up to AED 365,000 per year and SAR/AED 36,000 per business
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Investors can invest a maximum of SAR 100,000 in a calendar year and SAR 20,000 per one invevesment opportunity. |
| What returns can investors expect? |
- Investors can expect a net yield of up to 15% and Internal Rate of Return (IRR) of up to 30% as monthly repayments allow for the returns to compound.
- To understand the difference between yield and IRR read our blog here.
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Investors can expect an average annual return of 13.75%. |
| When are investors repaid? |
Investors receive monthly installments made of principal and profit. That means the repayments can be re-invested and in turn compound investor returns can compound.
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Repayments can be quarterly, semi-annually, annually or at the end of the investment period. However, it is important to note that these coupons only comprise of the profit amount rather than the profit and principal. This decreases the compounding ability. |
| What are the fees for investors? |
The returns displayed on the platform are net of any applicable fees.
The presented return is what you should expect to earn.
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1% on annual basis per investment |
| Does the platform have an Auto-Investment option? |
Yes.
Once enabled, the Auto-Invest system will automatically allocate your deposited funds or repayments into the marketplace based on your selected investment strategy
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No
Investors must choose an instrument to invest in. |
