Things You Need To Know Before You Start To invest
1
From SAR 1,000 to SAR 50,000, you choose
(for Individual Investors)
You decide the finance request amount, from SAR 1,000 to SAR 50,000.
2
Information necessary to finalise your registration
In order to start financing, you need to provide us with the following details:
Your national ID or Iqama (Resident Identity) details
Your employment details
Your national address
Once this information is uploaded, your account will be verified within 3 business days and you will be able to deposit money
3
Types of Investors
On the Raqamyah platform there are three categories of investors:
Individual Investors: Any individual registered to invest on the platform. The following limits apply to individual investors:
The maximum amount that can be transferred to the Raqamyah platform within any 12-month period is SAR 200,000.
The maximum exposure to any single investment is SAR 50,000, not exceeding 25% of the required investment amount
Qualified Investors: Any individual registered to invest on the platform. To be exempted from the controls mentioned above, qualified investors must sign a Declaration confirming that they meet at least one of the following criteria:
Own assets worth not less than SAR 3 million
Have worked or have been working in the financial sector for at least three years
Hold a specialized certificate related to financial analysis and accredited by a locally or internationally recognized entity
Hold a General Securities Certification recognized by the Capital Market Authority and have an annual income of not less than SAR 600,000 in the last two years
Institutional Investors: An institutional investor is an institution or entity that invests on behalf of its members and is permitted by its internal regulations to engage in this activity. For example, but not limited to, institutional investors can be banks, financial companies, credit companies, funds, family offices, investment companies, governmental or semi-governmental entities, etc.
The platform automatically finances 50% of the finance request of every finance request that is presented on the platform from Institutional Investors and 50% from Individual Investors. The balance that remains unfunded by a category will be offered to the other category to be filled.
4
How the Investment Process Works On the Raqamyah platform,
There are two methods of investing:
Automated Investing: This type of financing uses a tool called Automatic Investing to automatically select the financee (debtor's) that Investors are willing to finance based on pre-selected criteria. Investors can select their own custom mix based on the following:
Maximum amount for each investment
Sector(s) that you want to finance
Risk grades they wish to fund
Manual Investment: This method provides an investment search tool for investors to identify financing requests that the investor may be interested in funding, and then submit bids to finance those requests through a digital platform. This process is called manual investment. Investors can browse available financing requests and compare request details such as rating, financing purpose, financing type, duration, murabaha profit rate, and borrower information.
Each financing request remains open for funding for up to 30 days and closes once the required financing amount is completed. Requests are executed on a first-come, first-served basis.
5
We only list verified and pre-qualified finance requests for you
Our in-house credit team analyses every finance request through an analysis of the financials, the market and the management of the entity request the finance. This risk analysis leads to a grade (from A+ to C) which in turn leads to a profit rate given to the requested finance.
6
Diversification is key!
Diversification is a key to limit the risk of capital loss. We recommend diversifying over at least 50 finance requests For example, if you wish to finance SAR 50,000 through our platform, it is better to finance SAR 1,000 to 50 finance requests than SAR 2,000 to 25 finance requests.
7
Non-Performing Finance Request
Financing to SMEs presents a risk of capital loss due to non-performing financed amount: delays or defaults. Raqamyah manages the process of financed amount collection and default management on behalf of Investors. More precisely, Raqamyah manages commercial recovery directly and works with a partner for legal collection.