Arab Fund & Shorooq Partners to Expand SME Credit Access Across MENA
The new partnership aims to unlock non-dilutive capital for startups through structured debt.
Jun 04, 2025
A new strategic investment by the Arab Fund for Economic and Social Development's Badir Fund into Shorooq Partners' Nahda Fund II is set to enhance access to credit for small and medium-sized enterprises (SMEs) and startups across the MENA region. The partnership aims to fill lending gaps by providing flexible, non-dilutive financing options for early-stage companies, especially those unable to meet conventional banking criteria.
Nahda Fund II—regulated by the Financial Services Regulatory Authority at Abu Dhabi Global Market—offers structured debt solutions specifically designed for tech-enabled businesses. It supports companies with recurring revenue streams and clear paths to profitability, offering venture debt as an alternative to equity-based fundraising. This model allows startups to scale without giving up ownership, easing capital constraints during their growth stages.
By investing in the fund, the Badir Fund is deepening its commitment to entrepreneurship and financial inclusion in the region. Since 2009, it has disbursed over $1.5 billion in loans and $3.5 million in grants to support job creation and private-sector development. The new collaboration will target sectors such as fintech, logistics, e-commerce, and AI-powered services—areas where demand for working capital often outpaces supply from banks.
Shorooq has already backed high-growth regional startups through this model, including Pakistan-based fintech Abhi, which raised $15 million to expand its earned wage access offering, and The Box, a UAE self-storage startup that secured $12.5 million to support regional expansion.
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