Beban Crowdfunding, the Bahrain-based equity crowdfunding platform, is set to launch its operations in Egypt as a key part of its regional expansion strategy. This strategic move is backed by an increased investment from Foras AI, the investment vehicle founded by Exits MENA CEO Mohamed Aboulnaga, which has raised its stake to support Beban’s entry into one of MENA’s largest markets.
Tapping Into Egypt’s Vast Startup Ecosystem
Founded to democratize access to startup investments, Beban allows individuals to invest in early-stage companies for equity, with opportunities starting from just $100. By focusing exclusively on equity, the platform provides retail investors with access to ownership opportunities previously reserved for institutional players.
The expansion from Bahrain, with a population of approximately 1.7 million, to Egypt, with over 110 million people, represents a significant move toward a market with greater scale and potential. CEO Karim Saleh described Egypt as a “far bigger market and stronger growth opportunity,” highlighting the country’s mature startup ecosystem and growing investor base as key attractions.
While Bahrain will continue to serve as the regional headquarters, Egypt is poised to become a critical operational hub, connecting a larger pool of both investors and startups seeking alternative funding. A unique aspect of Beban’s model is its integrated media component, featuring a Shark Tank-style television show to showcase opportunities and educate the market.
Securing Regulatory Approval in Egypt
Beban is actively collaborating with Egypt’s Financial Regulatory Authority (FRA) to secure the necessary licenses for its local operations. The company is navigating the country’s existing legal framework by structuring its Egyptian entity with elements of securitization, investment funds, and regulated underwriting.
The FRA has shown a positive response to Beban’s proposed model but has mandated additional safeguards to ensure investor protection. These requirements include appointing an independent fund manager, implementing enhanced due diligence processes, managing funds through escrow, and maintaining comprehensive tracking of capital flows.
Saleh emphasized the importance of building trust within Egypt’s crowdfunding sector, which has historically faced skepticism. By adhering to institutional-grade governance and working closely with regulators, Beban aims to establish a new standard of credibility and transparency. The platform anticipates receiving preliminary approval soon, with full operational licensing expected within six months.
Foras AI Increases Stake to Fuel Expansion
The increased investment from Foras AI signifies strong confidence in Beban’s regional vision. Foras AI has been a proactive investor in platforms that strengthen the MENA startup ecosystem’s infrastructure. This additional capital will be directed toward supporting Beban’s market entry, ensuring regulatory compliance, and scaling its operations in Egypt.
If approved, Beban is positioned to become one of the first regulated equity crowdfunding platforms operating at scale in Egypt, potentially unlocking new capital for high-growth startups and broadening investor participation across the country.
About Beban Crowdfunding
Beban is an equity crowdfunding platform that connects promising startups and SMEs with a network of investors. Through its online platform and televised program, it aims to democratize startup investing by enabling individuals to buy equity in early-stage companies with accessible investment amounts.
Source: Arab Founders
