Funding Souq, licensed SME financing and investment platform in Saudi Arabia, is thrilled to announce a new partnership with the Kafala Program.
RIYADH, SAUDI ARABIA, August 15, 2024 /24-7PressRelease/ — This strategic collaboration aims to bolster investment in Saudi Arabia’s small and medium businesses (SMEs) by providing a risk-mitigating guarantee mechanism.
Under the agreement, the Kafala Program will guarantee up to 50% of the capital invested by Funding Souq’s investors in a select group of investment opportunities. This means investors can now achieve the same targeted returns with half the risk, making it an even more attractive proposition for those looking to support the growth of Saudi SMEs.
“We are grateful to the Kafala team for their visionary approach and commitment to supporting the SME sector,” said Martin Jaouni, the founder for Funding Souq. “This partnership is a testament to our shared goal of driving economic prosperity by empowering small businesses to thrive.”
The key objectives of the agreement are:
– Creating solutions that enable SMEs to obtain support with a guarantee from the Kafala program and encouraging investment through crowdfunding.
– Exploring ways of cooperation during the agreement and identifying the possible integration mechanism between the Kafala financing guarantee program and Funding Souq, to motivate enterprises through the platform.
– Accelerating the credit decision process to less than one business day using the latest technologies and electronic linkages with credit bureaus and electronic signatures through integration with the platforms.
Funding Souq is a Shariah-compliant SME financing and investment platform that connects established businesses with retail and institutional debt investors. By providing accessible small business loans, the platform aims to fuel SME growth and drive economic prosperity in Saudi Arabia and the broader Gulf region.
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