Complex Made Simple

Digital Deal Making platform launches to resolve SME financing Gap

In the era of digitization and the need for increased financing post Covid19 especially for the Small and Medium Sized sectors, a trusted deal making digital platform dubbed Maksab has officially launched. Maksab is an easy-to-use platform that makes it possible for corporate advisors and consultants to serve and assist SMEs

The Maksab Platform leverages the Ethereum blockchain to allow confidential, secure, streamlined, efficient and reliable transactions The platform allows SMEs to get access to qualified resources that help accelerate the growth of their businesses Small- and medium-enterprises (SMEs) in MENA have historically lacked access to traditional bank lending opportunities

In the era of digitization and the need for increased financing post Covid19 especially for the Small and Medium Sized sectors, a trusted deal making digital platform dubbed Maksab has officially launched. Maksab is an easy-to-use platform that makes it possible for corporate advisors and consultants to serve and assist SMEs with streamlined deal-making through exclusive emerging transactions and efficient management features. 

Maksab connects advisors and private professional investors with SMEs that are seeking growth capital in a virtual environment. The platform is developed for corporate finance consultants and transaction agents known as (“Advisors”), SME business owners (“Sell-Side”) and private investors (“Buy-Side”). 

The Maksab Platform leverages the Ethereum blockchain to allow confidential, secure, streamlined, efficient and reliable transactions between platform users by deploying Ethereum-based ERC-20 smart contract. The smart contract allows for Maksab tokens (MXAB) to be utilized on the network as a bridge currency and anti-spam mechanism to manage and close deals in a B2B environment.

“By adopting blockchain as an underlying transaction protocol and using the internet’s existing communication protocols, we allow deal-makers to facilitate B2B transactions in a streamlined and more efficient way. The deals that would usually take 8 to 12 months to close, can now take weeks or even days”, said Mohamed El-Masri, Founder, Maksab.

El-Masri, a corporate finance expert and social entrepreneur continued, “Maksab platform creates an opportunity to widely address the significant funding gap that SMEs are facing. This mechanism has never been possible before in the history of private capital markets.”

The platform allows SMEs to get access to qualified resources that assist them in accelerating the growth of their businesses. With the launch of Maksab, professional advisors and consultants can now support, consult, guide and prescribe growth strategies to entrepreneurs and their management teams.  

El-Masri concludes, “In the end, Maksab is all about community, users can earn rewards in the form of MXAB tokens for their participation and support of SMEs”.

Important notes:

  1. MENA based startups have raised over $659 million in the first half of 2020, a 35% increase compared to last year, the number of investment deals dropped by 8% for the same period, worst being the months of March and April.  
  2. An increase in later stage investments with larger round sizes which shows interest of investors in established companies rather than startups. 
  3. Small- and medium-enterprises (SMEs) in MENA have historically lacked access to traditional bank lending opportunities which only accounted for 7% of bank lending, the lowest in the world. According to the Arab Monetary Fund, while SMEs make up 80% of businesses in the Arab region, only one in five has a loan or line of credit. The International Finance Corporation (IFC) estimates the SME funding gap in the Middle East and North Africa (MENA) to be around $260 billion.
  4. Post Covid-19, a spur of new funding mechanisms for SMEs are emerging, examples of which include P2P lending (Peer-to-peer), Sharia compliant bonds (Sukuks), profit sharing agreements, and crowd funding.