Saudi Islamic fintech Ta3meed eyeing over 500 mln riyals in purchase order crowdfinancing next three years

Saudi Islamic crowdfunder Ta3meed forecasts that it can capture over 500 million riyals ($133.33 million) in purchase order financing in the next three years, co-founder and CEO Mohamed Alomayyer told Salaam Gateway.

Ta3meed is regulated by the Saudi central bank and is one of 22 permitted fintechs in the regulator’s sandbox. It launched its digital platform in November in partnership with Mambu, a pure SaaS banking platform, and is the first Islamic fintech in the Kingdom to provide purchase order financing.

The platform will consider purchase orders, from SMEs and companies, that are Saudi government-issued and guaranteed.

There are billions of riyals of purchase orders that are issued or guaranteed by the Saudi government. 96,166 contracts and bids for government projects, worth more than 142 billion riyals went through the Saudi ministry of finance’s Etimad platform from Jan to end-Sep 2020.  

Ta3meed can offer average returns to investors, according to their risk profiles, of between 12 and 18% per annum for investments starting from 1,000 riyals, said Alomayyer.

“The Ta3meed platform is not limited to the Saudi market but is open for any investor looking for alternative short-term investment opportunity backed by Purchase Order POs confirmed by the Saudi government supporting local SMEs with working capital and liquidity,” said the CEO.

Islamic purchase order financing is not new. In Southeast Asia, Kapital Boost has been providing Shariah-compliant crowdfunding for SMEs based on purchase orders or invoices since mid-2015, CEO Erly Witoyo confirmed with Salaam Gateway.

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