In a significant development for the Middle East and North Africa (MENA) startup ecosystem, Mohamed Abou El Naga Nagaty, founder of EXITS MENA, has sold a 36% stake in Beban, a Bahrain-based crowdfunding platform, to Abu Dhabi-based investment firm Foras. The deal indicates the growing interest in alternative financing solutions for small and medium-sized enterprises (SMEs) in the region, as well as the increasing role of crowdfunding in bridging the funding gap for entrepreneurs.
Beban, licensed by the Central Bank of Bahrain as a crowdfunding platform operator, was founded in 2022 and has quickly established itself as a key player in the region’s entrepreneurial landscape. The platform has facilitated over $250,000 in funding for startups across Bahrain and the Gulf Cooperation Council (GCC) region, attracting more than 5,000 individual and corporate investors. Its unique model combines equity crowdfunding with Sharia-compliant Murabaha debt financing, offering SMEs innovative solutions to address liquidity challenges.
Foras, an Abu Dhabi-based investment firm specializing in innovative startups across the MENA region, has acquired the stake as part of a strategic move to bolster Beban’s growth and expand its reach. The investment is expected to enhance the platform’s offerings and provide entrepreneurs with greater access to capital.
Nagaty, an Egyptian entrepreneur with a long-standing interest in crowdfunding, highlighted the challenges faced by startups in accessing traditional financing “I wanted to start a crowdfunding company in Egypt for eight years, but I didn’t know where to go. I had to do it in Bahrain because they have a special law for this matter.”
The crowdfunding market in the MENA region is poised for significant growth, with projections estimating it will reach $40.03 billion by 2033. This growth is driven by the increasing demand for alternative financing solutions, particularly for SMEs, which often struggle to secure funding through traditional channels.
Beban has positioned itself at the forefront of this trend, leveraging its media presence through the Beban TV Show and partnerships with regional stakeholders to highlight investment opportunities. The platform’s success in securing funding for startups has been further bolstered by Foras’ media channels, including the Elmal Elhalal podcast, which has played a key role in raising awareness about investment opportunities in the region.
Sheikh Hamed AlKhalifa, Chairman of Hope Ventures Holding, the parent company of Beban, expressed enthusiasm about the partnership with Foras. “We are thrilled to welcome Foras as a strategic partner. Their expertise and extensive network will be instrumental in enhancing our platform and expanding our support for entrepreneurs,” he said. “Together, we are committed to fostering innovation and providing more opportunities for businesses in Bahrain and the GCC.”
The collaboration between Beban and Foras is expected to result in the development of new features and resources, benefiting both entrepreneurs seeking funding and investors looking for promising opportunities. The partnership also reflects a broader trend of cross-border investments and collaborations within the MENA region, as stakeholders work to strengthen the entrepreneurial ecosystem.
The sale of the stake in Beban comes amid broader developments in his entrepreneurial journey. In July 2024, EXITS MENA, a fintech advisory and arrangement firm specializing in startups and SMEs, announced its expansion into Saudi Arabia. The move aligns with the Kingdom’s Vision 2030 initiative, which aims to increase the contribution of SMEs to GDP from 20% to 35% by the end of the decade.