Funding Souq Partners with Kafala Program to Boost SME Investment in Saudi Arabia

Funding Souq has entered into a strategic collaboration with the Kafala Program to bolster investment in Saudi Arabia's small and medium-sized enterprises (SMEs). This partnership aims to provide a risk-mitigating guarantee mechanism that will benefit both investors and SMEs.

Under the terms of the agreement, the Kafala Program will guarantee up to 50% of the capital invested by Funding Souq's investors in select investment opportunities. This guarantee enables investors to achieve their targeted returns with half the risk, creating a 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, founder of 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 include creating solutions that enable SMEs to obtain support with a guarantee from the Kafala program and encouraging investment through crowdfunding. The collaboration will also explore ways of cooperation and identify potential integration mechanisms between the Kafala financing guarantee program and Funding Souq, motivating enterprises through the platform.

Additionally, the partnership aims to accelerate the credit decision process to less than one business day. This will be achieved 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.