Smart Money, Real Impact
In a powerful new alliance designed to uplift SMEs across the Arab region, the Arab Fund for Economic and Social Development is stepping in to rewrite the SME financing narrative.
Through its dedicated SME financing arm, the Badir Fund, the Arab Fund has announced a strategic investment into Shorooq Partners’ Nahda Fund II — a Qualified Investor Fund registered with the Financial Services Regulatory Authority (FSRA) at Abu Dhabi Global Market (ADGM). This isn’t just another financial transaction. It’s a calculated move to close the credit gap that many entrepreneurs and startups in the region know all too well.
Let’s take a step back.
Why This Matters
Across the Arab world, thousands of SMEs — the backbone of local economies — face one common challenge: access to credit. Traditional banks often rely on rigid lending criteria that just don’t match the dynamic, high-growth nature of startups and early-stage businesses. And without funding, promising ventures stall, jobs go uncreated, and innovation slows down.
That’s where this new partnership becomes crucial.
The Badir Fund, managed as a special account by the Arab Fund, exists to support SMEs with not just capital, but also technical assistance. It’s designed to help small businesses grow profitably, hire more people, and drive private-sector-led development. This latest investment into Nahda Fund II is the Fund’s way of ensuring that deserving SMEs get more than just a chance — they get the tools to thrive.
On the other side of the table is Shorooq, one of the MENA region’s most recognized alternative investment managers. Regulated by FSRA ADGM, Shorooq has already built a strong reputation for innovating in the startup financing space. Its Nahda Funds, including the newly-launched Nahda Fund II, offer structured debt financing options specifically built around the needs of tech-forward and growth-oriented businesses.
More Than Capital — A Catalyst
According to Nathan Kwon, Partner and Credit Head at Shorooq, “This collaboration with the Badir Fund is a significant step towards empowering SMEs in the Arab region. By combining our expertise in structured financing with the Badir Fund’s commitment to economic development, we can provide SMEs with the necessary resources to thrive.”
His counterpart, Dr. Essam AlQuorashy, Secretary General of the Badir Fund, echoed the sentiment: “This investment from the Arab Fund will unlock vital growth opportunities for small businesses, promote their growth and foster financial inclusion of underserved segments across the Arab region.”
In other words, this partnership is about far more than numbers. It’s about impact.
Real Results, Real Stories
Take Abhi, for example — a fintech company that’s transforming how employees access their wages. With US$15 million in debt financing led by Shorooq, Abhi is expanding its earned wage access services, enabling more SMEs to support their workforce with timely financial solutions.
Then there’s The Box, a self-storage business that raised US$12.5 million through structured financing to enhance operations and expand footprint.
These stories are the beginning of a broader movement — one where SMEs are no longer stuck waiting in line at traditional banks or sidelined due to outdated lending models.
What’s Next?
As Shorooq’s Nahda Fund II begins deploying capital with the backing of the Badir Fund, more SMEs will gain access to the lifeline they need. Whether it’s a tech startup in Cairo, a logistics firm in Amman, or a sustainable F&B brand in Beirut, this partnership is designed to meet them where they are — and help take them where they want to go.
At a time when the region’s entrepreneurs need it most, this collaboration brings optimism, access, and, most importantly, action.
