Sukna Capital and PFG Launch $50M Fund to Fuel Saudi Tech Growth

Malaz Madani

Last updated 29-09-2025

3 min

Sukna Capital and Partners for Growth (PFG) are launching $50 million in loans for tech companies.

The funding will provide "non-dilutive" financing, allowing startups to retain control while scaling.

Sukna aims to bring global credit experience to Saudi Arabia through Sharia-compliant lending.

This partnership addresses traditional banks' lack of understanding of startup financing needs.

The initiative supports Saudi Arabia's Vision 2030 and offers founders alternative funding choices.

Sukna Capital, a Riyadh-based investment firm, is teaming up with Partners for Growth (PFG) to roll out as much as $50 million in lending for tech companies and small-to-medium enterprises across Saudi Arabia and the wider Middle East. It’s being billed as a move to give ambitious founders access to flexible financing without forcing them to sell off chunks of their businesses — something that can be a bit of a faff for many entrepreneurs when they’re trying to scale quickly.

The arrangement will see the duo provide working capital, contract financing, and term loans designed for growth-hungry startups, particularly those in technology and innovation. Sukna will plug PFG’s global credit experience into its own direct lending platform, which already operates through the Sukna Fund for Direct Financing (SFDF). That fund, still the first of its kind in the Kingdom, is Sharia-compliant and designed to offer “non-dilutive” financing — meaning startups can borrow against revenues or assets rather than give away equity. I reckon that’s a godsend for founders trying to preserve long-term control.

Sukhdev Hansra, Sukna’s Head of Asset Management, said the tie-up shows their commitment to bringing international standards into the local market. He pointed out that the region’s entrepreneurs will be getting institutional-quality credit without waving goodbye to ownership stakes. On the flip side, Andrew Kahn, PFG’s CEO, emphasised that their playbook has always been to listen closely to entrepreneurs before structuring debt that actually fits their growth plans.

Now, let’s be honest – debt financing isn’t always glamourous, but in ecosystems like Saudi Arabia’s it could be spot on. Equity investment has been flowing in at record levels, yet I’ve heard from plenty of founders across MENA who complain that traditional banks still don’t really “get” startups. Having international players like PFG step into the gap could make fundraising less of a headache.

When I think back to some of the founders I’ve met through Arageek-related events, the common theme is frustration about having to surrender control too early. They’re often chuffed to bits just to find an investor who won’t meddle. A structure like this, blending Sharia-compliant local financing with tailored global expertise, feels like the kind of hybrid solution the market’s been waiting for.

Of course, debt funding isn’t a silver bullet — and if cash flows don’t materialise, it can add strain. But with Saudi Arabia doubling down on Vision 2030 and backing entrepreneurship in areas from fintech to real estate, this sort of partnership could help bridge an important gap. Whether startups grab the opportunity or still shy away from loans, well… that will be the real test.

Either way, it’s clear the region is slowly moving past the early days when venture capital was the only card on the table. For once, it seems founders may actually have a choice. And that’s definately a positive sign.

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