- Sukna Capital receives official approval from the Saudi Capital Market Authority (CMA) to launch the Sukna Fund for Direct Financing (SFDF).
- SFDF is the first open-ended, Sharia-compliant direct lending fund in KSA, marking a regulatory milestone for non-bank financing in MENA.
- The fund structure allows investors to enter and exit at regular intervals, providing liquidity without long lock-up periods for institutional investors, while offering scalable financing for SMEs without equity dilution.

Sukna Capital has been given the green light by the Saudi Capital Market Authority (CMA) to introduce the Sukna Fund for Direct Financing (SFDF), the first open-ended, Sharia-compliant direct lending fund in the Kingdom. This marks a significant regulatory milestone for non-bank financing in the MENA region. The fund's structure allows institutional investors to have periodic liquidity without being tied up for long periods, offering non-dilutive and scalable financing options for small and medium-sized enterprises (SMEs) seeking growth without giving up equity.

Fares Bardeesi, CEO of Sukna, sees the launch as a crucial step in expanding institutional credit access for underserved sectors in the region. With years of experience in corporate finance and private investments, including overseeing transactions totaling over $6.50 billion in various sectors, Bardeesi emphasized the importance of tackling the funding gaps faced by both traditional and innovation-led SMEs. The SFDF aims to bridge the gap in SME lending in Saudi Arabia, which currently stands at just 9.1% of total bank credit, falling short of the Vision 2030 target of 15% to 20%.

Waleed Alballaa, Managing Partner of Sukna Ventures and Investment Committee member of the Fund, commented on the need to modernize financing structures for the tech and startup ecosystem, pointing out that the current funding models are not keeping up with founders' evolving needs. With a background at the intersection of technology, operations, and venture capital in Silicon Valley and Saudi Arabia, Alballaa brings a founder-centric perspective to the fund, designed to provide the right capital at the right time without unnecessary bureaucracy. The launch of SFDF builds on the success of Sukna Ventures in backing high-growth startups in technology sectors like mobility, logistics, and digital marketplaces.

The introduction of SFDF by Sukna Capital sets a new standard for direct financing in the region, offering a transparent and scalable solution for both borrowers and institutional investors.