Latest news with #NahdaFundII
CairoScene
4 days ago
- Business
- CairoScene
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.
Zawya
6 days ago
- Business
- Zawya
Arab Fund's SME arm and Shorooq's Nahda Fund II expand access to credit in the Arab World
Abu Dhabi, UAE — In a strategic move to bridge the financing gap for small and medium enterprises (SMEs) across the Arab world, the Arab Fund for Economic and Social Development, through its SME financing arm, Badir Fund, is investing in Shorooq's Nahda Fund II, a Qualified Investor Fund registered with the FSRA ADGM. This investment aims to enhance access to credit for technology companies, fostering economic growth and innovation in the region. Badir Fund for Developing SMEs is a special account managed by the Arab Fund. It helps small businesses access the financing and technical assistance they need to grow and profit, creating jobs and driving private sector led-growth. Shorooq, regulated by the FSRA ADGM as a Fund Manager, is a leading alternative investment manager in the MENA region, has pioneered debt financing solutions for startups through its Nahda Funds. The second iteration, Nahda Fund II, continues this mission by offering flexible financing options to growing businesses, signifying a revitalization of entrepreneurial ventures in the region. The collaboration between the Badir Fund and Shorooq's Nahda Fund II comes at a time when SMEs face challenges in accessing traditional bank financing. Banks often have restrictive lending criteria, leaving many SMEs underserved. This partnership aims to fill that gap by providing tailored credit solutions that meet the unique needs of SMEs. Nathan Kwon, Partner and Credit Head at Shorooq, commented on the partnership: 'This collaboration with the Badir Fund is a significant step towards empowering SMEs in the Arab region. By combining our expertise in structured financing with the Badir Fund's commitment to economic development, we can provide SMEs with the necessary resources to thrive.' Dr. Essam AlQuorashy, Secretary General for Badir Fund, 'This investment from Arab Fund will unlock vital growth opportunities for small businesses, promote their growth and foster financial inclusion of underserved segments across the Arab region.' Shorooq's portfolio companies, such as Abhi and The Box, exemplify the potential of structured financing. Abhi, a fintech company, secured $15 million in debt financing led by Shorooq to expand its earned wage access services, promoting financial inclusion for employees and SMEs. The Box, a self-storage firm, secured $12.5 million in financing to enhance its operations. The investment by the Badir Fund into Shorooq's Nahda Fund II underscores a shared commitment to fostering SME growth and economic development in the Arab region. By providing SMEs with access to credit, this partnership aims to unlock new opportunities and drive sustainable economic progress. About Shorooq Founded in 2017, Shorooq is a multi-dimensional investment firm. Our venture capital and credit practice invests in the most innovative technology companies across the MENA region and beyond. We have built deep sectoral expertise in fintech, platforms, software, and deep tech. Shorooq has backed category leaders such as Pure Harvest Smart Farms, Nymcard, Tamara, Sarwa, Lean Technologies, TruKKer, Mozn and Lendo. Shorooq was built on the values of building with founders and identifying attractive returns for investors. We pride ourselves on a local presence across the UAE, Saudi Arabia, Egypt and Korea. Visit us at Shorooq refers to a group of companies that are affiliates of each other and which operate under this business name, of which Shorooq Partners Ltd (regulated by the ADGM Financial Services Regulatory Authority FSRA FSP: 190004 as a category 3C Fund Manager) is a member. About Badir Fund for Developing Small and Medium Enterprises: Established by the Arab Economic and Social Development Summit in 2009, the Badir Fund for SMEs is a pioneering financial facility managed by the Arab Fund for Economic and Social Development. Since inception, Badir Fund has provided a total of $1.5 billion in loans to finance small businesses, expand access to finance through encouraging the flow of private capital into Arab countries, attract additional funding, and strengthen the private sector through technical and advisory assistance. In addition, Badir Fund provided $3.5 million in grants to support SMEs in the Arab region. For more information on Badir Fund operations, please visit: Media Contacts: Tarek Fouad Chief Marketing Officer, Shorooq Shorooq Group Press: press@ Direct: tfouad@ Arab Fund for Economic and Social Development Mohamed Eissa Head of Communications
