Arab Fund Backs Shorooq Partners’ Nahda Fund II to Boost Tech SME Growth

Editorial Team

Last updated 2-06-2025

3 min

SMEs face challenges in accessing finance due to strict traditional bank criteria.

The Arab Fund and Shorooq's partnership offers tailored debt solutions for tech startups.

Badir Fund, active since 2009, supports private-sector growth with substantial financing.

Shorooq Partners' success stories highlight innovative support for fintech and self-storage firms.

The collaboration aims to bridge the SME credit gap and boost financial inclusion in MENA.

When it comes to accessing financing, small and medium-sized businesses (SMEs) often hit a brick wall. Strict criteria set by traditional banks can leave promising new firms high and dry. So there's some good news floating in the winds of the Arab busines world today: the Arab Fund for Economic and Social Development is stepping up its commitment alongside Shorooq Partners to address precisely this issue.

Through its SME financing initiative, Badir Fund, the Arab Fund has announced it’s investing in Shorooq’s Nahda Fund II. Now, this fund isn't your average run-of-the-mill setup; regulated by the FSRA at Abu Dhabi Global Market (ADGM), it aims to provide debt financing specifically designed for ambitious technology startups. Put simply, the fund is offering tailored credit solutions geared directly towards tech SMEs, giving them precisely what they need to rocket upward.

Nathan Kwon, who heads credit at Shorooq, sums up the partnership's impact nicely, saying, "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."

Badir Fund is no stranger to championing the cause of small businesses. Established as a dedicated fund within the Arab Fund's umbrella, Badir has, since 2009, channelled an impressive USD 1.5 billion in loans along with USD 3.5 million in grants into businesses around the region. Its main aim? Supporting private-sector growth and creating sorely needed jobs.

Similarly, Shorooq Partners, an investment firm known for backing innovative startups, has seen tangible success with previous partnerships. Fintech startup Abhi, one of their portfolio companies, was able to raise USD 15 million recently, boosting financial inclusion by offering employees easier wage access services. The Box, another successful case study, secured USD 12.5 million which went directly into strengthening its self-storage operations.

Dr. Essam AlQuorashy, Secretary General of Badir Fund, highlighted the potential of the partnership clearly, stating, "This investment from Arab Fund will unlock vital growth opportunities for small businesses, promote their growth and foster financial inclusion of underserved segments across the Arab region."

Ultimately, what such partnerships could mean for entrepreneurs across the MENA region is enormous. Addressing the chronically tough SME credit gap in the area is no small feat. If this collaboration achieves its aims, it could open doors for countless local SMEs to access finance they might otherwise have found maddeningly elusive.

On my recent visit to Jordan—eating plenty of delicious mansaf, as regular Arageek readers know is a personal weakness—I chatted with some local young business owners who lamented about missing out on potentially brilliant opportunities, purely because traditional banks turned them down. This deal, with the combined strengths of Badir and Shorooq, might just give ambitious startups like those I've spoken to something solid to pin their dreams on.

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