Sukna Capital has received regulatory approval from the Capital Market Authority (CMA) to launch the Sukna Fund for Direct Financing (SFDF), the first open-ended, sharia-compliant direct lending fund in Saudi Arabia. The approval represents a significant development in non-bank financing within the Kingdom and across the wider Middle East and North Africa region.
The fund is designed to offer institutional investors access to private credit while providing small and medium-sized enterprises (SMEs) with non-dilutive, asset-backed capital. Unlike traditional closed-ended private credit vehicles, SFDF’s open-ended structure allows investors to enter and exit the fund at regular intervals, providing periodic liquidity without extended lock-up periods.
For SMEs, the fund offers an alternative to equity financing, enabling founders to retain full ownership while gaining access to scalable funding. This is especially relevant in the current lending environment, where the share of SME bank credit remains below national targets.
“As of Q3 2024, SME lending in Saudi Arabia is estimated to be SAR 329.23 billion—just 9.1% of total bank credit—well below the Vision 2030 target of 15 to 20 percent,” said Fares Bardeesi, CEO of Sukna Capital. “SFDF is designed to address that gap through institutional, regulator-aligned capital solutions tailored to the needs of high-potential businesses across sectors.”
Bardeesi, who brings more than 20 years of experience in corporate finance and private investments, has overseen over USD 6.5 billion in transactions across real estate, technology, and healthcare. As co-founder of Sukna Ventures and the lead architect of the firm’s structured private debt strategy, he noted that the fund aims to serve both traditional SMEs and those in emerging sectors.
Waleed Alballaa, Managing Partner at Sukna Ventures and a member of the SFDF Investment Committee, highlighted the fund’s relevance to the region’s evolving startup ecosystem. “The tech and startup ecosystem has matured significantly, but financing structures simply haven’t caught up. We designed SFDF to meet founders where they are—with the right capital, at the right time, and without the red tape.”
Alballaa’s background spans two decades in technology, operations, and venture capital across Saudi Arabia and Silicon Valley. His experience includes launching multiple investment vehicles and serving on the boards of several technology firms. His involvement in SFDF reflects an approach shaped by a founder-first mindset and a focus on practical capital solutions for growing companies.
SFDF builds on the foundation of Sukna Ventures, Sukna Capital’s venture investment arm, which is known for supporting startups in sectors such as mobility, logistics, and digital marketplaces. Sukna also integrates proprietary technology to support its lending operations, including systems for origination, risk assessment, portfolio monitoring, and investor reporting.
The fund’s launch aligns with broader efforts to diversify capital markets in Saudi Arabia and increase funding options for private enterprises. With CMA approval in place, Sukna Capital is now positioned to begin onboarding institutional investors and offering credit to eligible SMEs.
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