List of SME crowdfunding platforms in Saudi Arabia

Explore crowdfunding opportunities that SME crowdfunding in Saudi Arabia has to offer. Remember that you can make your search request more specific and save time by using the filters. As the market develops and more platforms join CrowdSpace, we keep updating the list. Remember to drop by from time to time to see what’s new with the SME crowdfunding in Saudi Arabia.

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            There are 21 SME crowdfunding platforms in Saudi Arabia. They offer Equity, Debt, P2P lending, Reward, Tokenized or Donation investment opportunities for retail and accredited investors.

            The minimum investment amount varies from platform to platform and usually depends on the industry or particular platform goals. On this listing, you will find crowdfunding platforms that offer investment opportunities starting at 1€ with a maximum investment amount of 1000.

            As a crowdfunding platform directory, we verify the most active crowdfunding platforms if they reach out and claim their profile. On this listing, 3 crowdfunding platforms claimed their profile. They include Happy Pot, Wafer, 8lends and others.

            Fun fact: among all the crowdfunding platforms listed here, the oldest has been founded in 2018 and the youngest in 2024.

             

            Is SME crowdfunding a good investment in Saudi Arabia?

            The crowdfunding phenomenon has significantly democratised the niche by making it more accessible for non-accredited and retail investors. It’s safe to say that both sides involved have been experiencing a new development influx. As more companies join the market, the more diverse and innovative the industry becomes. Still, it would be inaccurate to label this investment opportunity as universally good for everyone.

            An investor gets a chance to tap into a new market with a relatively low initial investment. Fundraisers can access a larger pool of investors/donators and, in this way, increase their chances of accomplishing their goals. As compelling as it may look, we won’t tire of warning you that there are risks to be aware of. 

            While SME crowdfunding companies in Saudi Arabia most likely operate under the same legal framework, we still recommend reviewing and analysing each provider individually for past performance, loan default rate, financial reports for previous periods, review from investors using the platform etc. The business industry’s previous background, local economic and social conditions also play a big role. 

            You must have read this before, but it all comes down to the platform’s thorough reliability research before investing. It’s not only your “safety belt” in terms of potential risk, but it’s also necessary to learn about all the opportunities possibly involved to benefit your portfolio. 

            So, to wrap up the answer, it may be a good investment option depending on your goals and available resources.

             

            Tips to start investing on crowdfunding platforms for SME projects in Saudi Arabia

            These recommendations are an essential kit to kick off your investing portfolio. 

            • Find out if the platform is regulated and what legislative framework it is subject to.
            • Decide on the crowdfunding type you’re willing to invest in: it’ll help align your expectations with the potential returns and narrow down the area of interest to investigate. On CrowdSpace, you can use filters to narrow down the platforms list that are potentially interesting to you. Also, you can view an up-to-date list of ECSP-licences crowdfunding platforms.
            • Do your homework and research the project in detail: if there is a partner involved and their professional reputation, if the platform has hosted a similar project before, etc.
            • Start small, and don’t rush trusting the platform with large amounts, whichever that is for you. No matter how well you’ve investigated the provider, there is no way to find out about all of the steps and features involved in advance.
            • Research the platform’s previous reputation. The least you can do is check out reviews on websites like Trustpilot. To dive deeper, look up investors’ blogs sharing their detailed feedback and impressions of the crowdfunding providers or niche you’re interested in: from general website impressions to return results and transaction specifics.
            • Try spreading your investment across a few providers or projects to diversify the portfolio. Should a project delay or even go bust, you won’t lose all your funds. 

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            FAQ about SME crowdfunding in Saudi Arabia

            Is SME crowdfunding regulated in Saudi Arabia?

            As of 2022, all European crowdfunding providers must have ECSP (European Crowdfunding Service Provider) licence to carry on their operations. ECSPR does not govern business models like P2P lending, however, other regulations apply to them.

            SME crowdfunding in the UK is overseen by the Financial Conduct Authority (FCA).

            Other non-EU countries have their local regulatory bodies.

            How to attract investors to my SME project in Saudi Arabia?

            Depending on the project specifics, the tools and strategy may vary. Nonetheless, these universal steps can apply to most cases and help you reach your goal. 

            • Produce and well-present a solid business plan. Elaborate on every aspect, add the outcome forecast and outline the project’s goals.
            • Be clear with your ultimate financial goal.
            • Leverage your network and use various social media channels.
            • Promote the campaign via videos, posts/articles across media sources. Try to think out of the box and explore alternative channels to reach your potential investors/donators.
            • Communicate your values. It can help stand out and connect with people with similar visions.
            • Emphasise your goal or growth opportunities.
            • Be open to feedback. Sometimes you can get sound advice at no price to improve your campaign. 
            How do crowdfunding platforms of SME in Saudi Arabia make money?

            In a nutshell, platforms receive their profit from various fees: subscription/membership fee or percentage of the total amount raised, the so-called “success fee”. As a rule, it’s about 3-5%. 

            Some providers offer additional services to help you promote a campaign, for instance, paid advertising or marketing consultations. 

            What are the most common risks for SME crowdfunding in Saudi Arabia?
            • Risk of losing the money investedCrowdfunding investments are considered riskier than traditional alternatives. That’s why it’s so widely recommended to diversify across loans, choose the crowdfunding provider carefully, and opt for one with buyback guarantees.
            • Poor liquidityShould you prefer to pull your investment earlier or sell the loan on a secondary market, it probably won’t happen fast. In many cases, you need to be prepared for your money to be stuck for some time. Still, the market is dynamic and more platforms offer flexible conditions and have well-planned scenarios for such situations.
            • Risk of running into fraudWhile the crowdfunding legislative and regulative landscape is actively reshaping, the potential for fraud remains. So take all your scrutiny to look up the crowdfunding platform before signing up for anything.
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