Riyadh-based alternative investment firm Sukna Capital has partnered with global credit manager Partners for Growth (PFG) to launch a $50 million specialty lending initiative targeting high-potential tech companies and SMEs across Saudi Arabia and the wider MENA region.
The collaboration will provide non-dilutive financing solutions such as working capital lines, contract financing, term loans, and bespoke debt instruments. Funds will be deployed through Sukna’s Sukna Fund for Direct Financing (SFDF), the Kingdom’s first open-ended, Sharia-compliant direct lending vehicle.
Addressing Funding Gaps in the Region
Many growth-stage startups in MENA struggle to access capital without giving up equity, while traditional lenders remain cautious about high-risk or asset-light businesses. This partnership aims to bridge that gap by:
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Offering flexible capital structures tailored to business models
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Preserving founder control through non-dilutive lending
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Aligning lending with assets and revenues rather than heavy collateral
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Scaling across borders with regional reach and Sharia compliance
Sukna’s CMA approval for the SFDF demonstrates strong regulatory confidence in this approach.
Product Features and Value Proposition
The Sukna–PFG lending programme rests on four pillars:
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Working Capital and Contract Financing: Liquidity for operational and growth cycles
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Term Loans and Custom Debt Solutions: Financing for scaling and capex investments
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Sharia-Compliant Structures: Broadening access for regional investors
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Open-Ended Fund Design: Offering investor flexibility without rigid lockups
This framework allows entrepreneurs to raise institutional credit while retaining ownership.
Leadership Perspective
Sukna Capital’s leadership noted that the partnership brings global lending standards into local markets, giving entrepreneurs access to growth capital aligned with their ambitions.
PFG’s executives emphasised their approach of designing debt solutions after engaging with founders directly, aiming to accelerate growth while safeguarding equity and control.
Market Context and Growth Opportunity
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MENA’s SME and startup ecosystem remains underserved by institutional credit.
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Demand for non-dilutive funding is rising as founders look beyond traditional equity.
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Regulatory evolution is opening doors to private credit vehicles and Sharia-compliant finance.
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The fund aligns with regional strategies that prioritise innovation, diversification, and digital transformation.
Challenges and Considerations
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Cross-border deployment will require navigation of regulatory, legal, and currency risks.
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Lending to asset-light, high-growth ventures increases underwriting complexity.
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Strong governance and monitoring will be critical to risk management.
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Expanding beyond Saudi Arabia will depend on partnerships and market execution.
Market Implications
The $50 million Sukna–PFG initiative signals a new chapter in MENA’s capital markets. By blending private credit expertise with Sharia-compliant structures, it offers startups and SMEs a viable alternative to equity financing.
If executed effectively, this fund could catalyse innovation across the region, setting a precedent for how institutional debt can complement venture capital in emerging ecosystems.
