ٍSukuk Capital Vs. Funding Souq

Review & Features Comparison

Overview

The rise of debt based crowdfunding platforms means there’s a ton of options for both investors and borrowers. The platforms may look similar, but the nuances in how they operate

can help you earn more as an investor and pay less as a borrower, so it’s important to study the details.

Don’t have the time? Below we’ve broken down the key points you need to know for navigating Funding Souq and Sukuk Capital, both of which are shariah-compliant crowdfunding platforms that specialize in financing for SMEs in Saudi Arabia (Funding Souq also operates in the UAE). Take a look before making your next crowdfunding decision.

Features Comparison

For Investors

Platform feature	Funding Souq	Sukuk Capital Platform
As an investor, what will I be investing in?	- 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.	- 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.
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.	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	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.	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.	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.	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	No Investors must choose an instrument to invest in.

For Businesses

Platform feature	Funding Souq	Sukuk Capital Platform
What products are being offered?	- Working capital loans that range from 3 to 12 months in duration. - Fixed asset loans that extend up to 24 months.	Working capital loans, project finance, and asset purchase finance of varying durations.
Who is eligible for borrowing?	- Creditworthy SMEs in Saudi Arabia or the UAE with a minimum of two years of trading. - The business should have at least SAR/AED 2 million of revenue and be profitable or on path to profitability.	-Creditworthy SMEs in Saudi Arabia with audited financial statements.
What is the maximum financing duration?	Short term financing for 3-24 months.	Long term financing up-to 10 years
What level of financing is available?	Typically between SAR / AED 100,000 to 1,000,000, but up to a maximum of SAR/AED 7.5 million.	A company can receive up to 30 million SAR in financing
What are the fees for borrowers?	- Administration fees: 2% to 3% - Monthly profit rate: 1% to 1.5%	Administration fees: 3-5%
How long does it take to get a funding decision?	Within 3 working days from when the submission is completed.	Financing offers are typically sent within 3 business days from when your submission is completed.
Are multiple funding facilities permitted?	Yes.	Yes.
Are all finance and investment operations sharia-compliant?	Yes, you can find out more details about our Shariah Certficate	Yes

Invest with no hidden fees and get returns of up to 26%

Up to 26% return by financing SMEs

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