Angel Investment Network Connecting Middle East Entrepreneurs with Angel Investors

A look inside how Angel Investment connects entrepreneurs with new and experienced business investors in the Middle East.
Aug. 20, 2012 - PRLog -- In this day and age, the amount of young and experienced entrepreneurs is growing rapidly thanks to the ever-increasing innovation in the technology sector. Thanks to international online investment companies, new start-ups are able to take off quicker than ever with the appropriate funding and managerial guidance from investors. Middle East Investment Network, part of the Angel Investment Network, a popular choice for aspiring investors, now offers a unique online community where entrepreneurs and investors can team up on investment opportunities based in the UAE, Turkey, Israel, Egypt, Saudi Arabia, and many other countries in the Middle East.

The Middle East Investment Network offers a variety of services and agreement options within its online community. One popular financing option is the Musharakah agreement also known as Shirkah. Musharakah helps finance new business operations in a similar way to Equity Financing but it is based on Islamic principles, which prohibit making a profit on interest from loans. All the partners are involved in business operations therefore all the losses are shared, hence becoming more of a joint management venture. This is a great option if a new business is looking to share specified amounts of all profits or losses so that no actual “loan” of finances would occur.

Another option for Islamic financing, and generally the widely used in the Middle East, is the Mudarabah practice. The basis of the agreement follows Islamic Law (Shariah), in which interest based financing is prohibited. This practices involve a partnership where the person investing it is referred to as the "Rabb ul Mal" whereas the business or entrepreneur looking to build a business is referred to as the "Mudarib." This type of investor does not usually participate in the everyday management in this type of agreement. In a Mudarabah, the parties involved have to agree beforehand what portion of the profit/loss each side is responsible for and the percentage of returns based on the level of work.

The need for angel investment is even more visible when financial institutions across the globe are undergoing major changes. Many Investors are looking to channels to make their investment, going beyond the traditional financial and real estate paths. This branching out gives way for entrepreneurs to generate funding for their new businesses. Join the Middle East Investment Network and seek out investors in a variety market sectors, to form partnerships that will not only bring investment and capital funding to the table, but also experience and direction.

Find out more at
Tags:Musharakah, Equity Financing, Private Investment, Start-up
Industry:Investment, Internet, Business
Location:United Kingdom
Account Email Address Verified     Account Phone Number Verified     Disclaimer     Report Abuse

Like PRLog?
Click to Share