Sukna Ventures, the tech-focused investment arm of Sukna Capital, has announced a major step forward in its mission to transform the startup landscape across Saudi Arabia and the wider MENA region. The firm is set to invest over $80 million into regional startups, bringing its total portfolio to an impressive $130 million.
This strategic move aims to support high-potential ventures in critical sectors such as digital infrastructure, fintech, and logistics, all aligned with Saudi Arabia’s Vision 2030 and regional digital transformation goals.
Launching a New SME-Focused Fund
To further its impact, Sukna Ventures is also preparing to launch the Sukna Fund for Direct Financing (SFDF). The SFDF is a SAR 375 million ($100 million+) open-ended direct lending fund. It will offer:
- Sharia-compliant, non-dilutive financing
- Flexible terms tailored for SMEs
- Asset-backed funding to reduce financial risks
- No equity dilution, preserving founder control
- Periodic liquidity for investors, without long lock-up periods
This initiative was recently approved by the Saudi Capital Market Authority. This will help in positioning Sukna as a vital financial bridge for startups navigating early-stage growth and cash flow challenges.
A Strategic Push to Close the SME Financing Gap
Small and medium-sized enterprises (SMEs) remain the backbone of Saudi Arabia’s non-oil economy. Yet as of Q3 2024, SME lending only accounted for 9.1% of total bank credit. This is well below the Vision 2030 target of 15–20%.
By offering non-dilutive capital and accessible funding alternatives, Sukna Ventures seeks to close this gap and foster sustainable growth among underserved businesses.
“There’s a pressing need to unlock growth capital for SMEs without forcing founders to give up equity too early,” said Fares Bardeesi, CEO of Sukna Capital, in a statement to Asharq Business.
Focused Investments in Digital Growth Sectors
Founded in 2022, Sukna Ventures is relatively new but highly active. Its portfolio already includes over 20 high-growth tech startups across Saudi Arabia and the broader region. Its investment strategy focuses on:
- Digital infrastructure: Building the backbone for the digital economy
- Fintech: Supporting the evolution of next-gen financial services
- Logistics: Enhancing supply chain tech and last-mile delivery systems
These areas not only promise strong returns but are crucial to accelerating Vision 2030’s national transformation agenda.
Why This Matters
Sukna Ventures is helping reshape the investment narrative in the MENA region. Its combination of tech-forward capital, inclusive financing, and alignment with national development goals sets a new standard for venture and SME funding.
As Saudi Arabia pushes toward a diversified, innovation-driven economy, firms like Sukna Ventures are providing the financial tools and ecosystem support needed to make that vision a reality.