Saudi-based alternative investment platform Sukna Capital has secured regulatory approval to launch a first-of-its-kind open-ended direct financing fund targeting SMEs in the region.
The Sukna Fund for Direct Financing (SFDF), now greenlit by Saudi Arabia’s Capital Market Authority (CMA), will allow institutional investors to deploy non-dilutive, sharia-compliant capital to small and mid-sized businesses. Unlike typical closed-end private credit structures, Sukna’s vehicle is open-ended, offering periodic liquidity and eliminating long lock-up periods, an uncommon feature in private lending.
The move addresses a growing pain point: SME lending in Saudi Arabia remains under-penetrated, at just 9.1% of total bank credit, far below the 15–20% target outlined in Vision 2030. Sukna’s CEO, Fares Bardeesi, said the fund was built to address this gap with asset-backed financing solutions that avoid equity dilution for founders.
Fares, a seasoned corporate finance executive who’s led over $6.5 billion in deals, said the platform is targeting high-potential sectors ranging from technology to healthcare.
The fund also reflects Sukna’s evolution beyond venture into structured private debt. Sukna Ventures, the firm’s technology-focused investment arm, is already known for backing startups in mobility, logistics, and digital marketplaces, across the world. Its notable portfolio companies include Saudi’s Classera, Egypt’s MoneyHash, UAE’s SimpliFi, US-based Paradigm, and Pakistan’s Abhi.
Waleed Alballaa, Sukna Ventures’ Managing Partner and Investment Committee member, who brings over two decades of experience at the intersection of technology, operations, and venture capital said, traditional funding models haven’t kept up with the region’s startup growth, and SFDF is intended to bridge that lag with “the right capital, at the right time, without red tape.”
Sukna will use proprietary tech to manage origination, risk, and investor reporting, aiming for scale and transparency as it ramps deployment.
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