In a milestone for alternative financing in the region, Sukna Capital has received official approval from the Capital Market Authority (CMA) to launch the Sukna Fund for Direct Financing (SFDF) , Saudi Arabia’s first open-ended, Sharia-compliant direct lending fund.
Designed to fill critical funding gaps for startups and SMEs, SFDF offers non-dilutive, asset-backed financing, giving founders access to capital without giving up equity. This move reflects a growing push to modernize private credit and support Vision 2030 goals to boost SME lending in the Kingdom.
A Smarter, Founder-Friendly Approach to Capital
Traditional equity financing often requires founders to give up ownership. SFDF solves that by offering:
- ✅ Non-dilutive financing – Founders retain full control and ownership
- ✅ Asset-backed loans – Flexible lending structures based on real assets
- ✅ Open-ended fund – Investors enjoy periodic entry/exit without long lock-ups
- ✅ Regulatory alignment – Fully licensed under CMA, Sharia-compliant
With this model, SFDF creates a win-win: scalable capital for businesses and liquidity flexibility for investors.
Backed by Proven Leaders and Technology
Sukna’s leadership brings over $6.5 billion in transaction experience, ensuring institutional-grade structuring and execution. At the helm is Fares Bardeesi, Sukna Capital’s CEO, who brings two decades of corporate finance experience across real estate, technology, and healthcare.
“As of Q3 2024, SME lending accounted for just 9.1% of Saudi bank credit, well below the Vision 2030 target of 15–20%,” Fares shared.
“SFDF directly addresses that shortfall with founder-aligned capital that’s fast, flexible, and fully regulated.”
The fund builds on the foundation laid by Sukna Ventures. Sukna Ventures is the firm’s VC arm known for investing in fast-growing sectors like logistics, mobility, and digital marketplaces.
Meeting MENA’s Growing SME Demands
With tech startups and SMEs driving the next phase of economic transformation in MENA, the demand for customized capital structures has never been greater. Waleed Alballaa, Managing Partner at Sukna Ventures and SFDF Investment Committee member, emphasized the fund’s timing.
“The startup ecosystem has matured. But legacy financing hasn’t. SFDF is built to meet today’s founders where they are, with capital that’s fast, clean, and relevant.”
Waleed’s experience across Silicon Valley and Saudi Arabia, combined with a strong technical and venture capital background, gives him deep insight into the capital pain points faced by growing companies.
A New Era for SME Financing
Sukna is also leveraging proprietary tech to digitize every step of the lending process:
- ✅ Loan origination and onboarding
- ✅ Risk assessment and underwriting
- ✅ Ongoing portfolio monitoring
- ✅ Real-time investor reporting and transparency
This digital infrastructure ensures a smooth, scalable experience for both borrowers and investors. In effect, an essential step in making private credit more accessible and impactful in the region.