Sukna launches MENA’s first open-ended, sharia-compliant direct lending fund: Sukna Capital received the green light from the Capital Market Authority (CMA) to roll out the region’s first open-ended, sharia-compliant direct financing fund, according to a statement (pdf).

Open-ended? The new vehicle aims to provide flexible capital to SMEs — meaning institutional investors can enter and exit periodically without long lock-up periods. This allows founders to finance their operations while maintaining full ownership and avoiding the constraints of equity financing.

Below target: “As of 3Q, SME lending in Saudi Arabia is estimated to be SAR 329.23 bn — just 9.1% of total bank credit — well below the Vision 2030 target of 15-20%,” said Fares Bardeesi, CEO of Sukna.

Mismatched development: Sukna attributed SME lending falling below targets to traditional financing structures not keeping pace with the rapid development of Saudi’s business environment. “The tech and startup ecosystem has matured significantly, but financing structures simply haven’t caught up.” Managing Partner of Sukna Ventures Waleed Alballaa said.

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