Before going to start a crowdfunding campaign on Arab based platforms, you first must take into consideration that the majority of the Arab world are very keen to the law of Islam, not to support in ideas that do not comply with it, examples of this include lending money with interest. Another thing that most of the people here prefer to get tangible things in return for their contribution.
The Middle East’s newest crowdfunding Arab platform just launched a month ago. The platform follows an all or nothing funding model. Zoomaal charges 5% fee for every successful project for donors, offers different payment models, including CashU, Cashi, and Ukash, through a partnership with Gate2Play, as well as taking PayPal and credit cards.
Zoomaal does not target startups looking for general funding. Instead, it concerns startup projects that have a well-defined scope. Startups run through a rigorous two-step verification process, first by the team to ensure that the pitch, video, text, and amounts are realistic and accurate. Second, after the funding is raised, Zoomaal requests a copy of the project leader’s identification and proof of their affiliation to ensure that the money is being sent to the right person.
Started in July of 2012 Aflamnah Crowdfunding Arab platform — which simply means “our films” in Arabic — It’s an Emirati-based platform that endeavors to help filmmakers from the Arab world. Aflamnah also accepts science-inspired projects and any form of creative ideas.
Aflamanah doesn’t use all-or-nothing funding; project creators keep all funds raised, and they fee a fixed US$100 upload fee to post the project to their site, then they ask for a 6% commission on the money raised and don’t penalize those who haven’t reached their target goal with extra fees.
“Shekra” is drawn from the Arabic phrase “sherik fekra” in Arabic, which means “share an idea.” The platform was launched in Cairo, to support fully startups, Shekra provides many activities before and after funding. Shekra works by asking its network of investors to offer small amounts of capital to fund a startup or a particular project, thus mitigating investment risk and It had been said that they have only had 70 in total some from Egypt and others from around the region and globe.
Instead of charging companies a percentage of the money raised, Shekra takes an equity stake in the startups, which fits well with the principle of risk-sharing in Islamic finance. It also takes a “minimal” fee for services provided.
This non-profit crowdfunding Arab platform is based in Egypt. It had just launched the service last year in October 2012. Now encourages small and medium-sized businesses to innovate as it links their technical needs to local creative talents. On the site, users can post “challenges” and ideas for innovations for free. Entrepreneurs or those with solutions can submit a product that will then solve the problem, paying a small fee to register and that what makes it stand out is that it is both for crowdfunding and crowdsourcing ideas.
This innovative crowdsourcing approach is a first for the Arab region Yomken intends to develop partnerships in the future, expanding from Egypt to the whole MENA region,
Eureeca, the first crowd investing (equity crowdfunding) platform in the region, connecting SMEs (small & medium enterprises) with investors. Registration for entrepreneurs and investors is free, Businesses are required to set a funding target and are provided a standard 90 day period to raise funds from investors on the website. If the funding goal isn’t reached within that time limit, the funds will be returned to the investors.
By allowing anyone over the age of 18 with more than US $100 can invest- after passing some checks- to invest Eureeca crowdfunding Arab platform lowers the investment barrier to entry and opens up the pool of potential investors, providing entrepreneurs and SMEs with an alternative to traditional methods of funding.
Images of Chicago Tribune, Rude Bagette and Alphr