Mudaraba Financial Company

About Mudaraba Financial Company

Mudaraba Financial Company (شركة مضاربة المالية) operates an online debt crowdfunding platform in Saudi Arabia that connects small and medium-sized businesses with investors. Companies raise financing by issuing mudaraba sukuk under a structure the company describes as compliant with Islamic Sharia. Its office is on Al Olaya Street in Riyadh.

According to the Capital Market Authority (CMA) notice on its site, the CMA board approved the company's application to its fintech experimental permit, allowing it to arrange sukuk offerings to investors registered on the platform. The permit framework was issued in 2018.

The company states its basic financing criteria: up to SAR 10 million a year per borrower and SAR 5 million per issuance, terms of up to five years, and financing of up to 70 percent of the project amount. Applications go through a credit check; the company says risk is assessed with Modefinance's credit decision engine and that its assessment and pricing are fully automated. A special-purpose entity is created for each borrower to provide governance and separately audited financial statements. Investors can participate from SAR 1,000.

The company's Sharia adviser is named on the site as Dar Al-Muraja'a Al-Shari'a. The site also publishes default rates for its issuances, a conflict-of-interest policy, a knowledge centre and a blog. The copyright notice runs from 2021 to 2026.

The pages reviewed do not name founders or give total funds raised, number of issuances or investor numbers.