June 3, 2025
Abu Dhabi, UAE – June 2, 2025 — In a strategic effort to close the financing gap faced by small and medium enterprises (SMEs) across the Arab world, the Arab Fund for Economic and Social Development, through its SME financing arm Badir Fund, has announced an investment in Shorooq’s Nahda Fund II. The fund, a Qualified Investor Fund registered with the FSRA ADGM, focuses on providing flexible credit solutions to technology companies, driving innovation and economic growth in the region.
Badir Fund, managed by the Arab Fund, is dedicated to supporting SMEs by offering access to financing and technical assistance that enables business growth, job creation, and private sector development.
Shorooq, regulated by the FSRA ADGM as a Fund Manager, is a leading alternative investment firm in the MENA region, pioneering debt financing solutions for startups via its Nahda Funds. Nahda Fund II continues this mission, delivering adaptable financing options tailored to the evolving needs of growing businesses, thus revitalizing entrepreneurial ventures across the Arab world.
This collaboration comes at a critical time when many SMEs struggle to secure traditional bank loans due to restrictive lending criteria. The partnership aims to fill this financing void by offering bespoke credit solutions that address the specific challenges faced by SMEs.
Nathan Kwon, Partner and Credit Head at Shorooq, said:
“Our partnership with Badir Fund marks a significant milestone in empowering SMEs across the Arab region. By combining Shorooq’s expertise in structured financing with Badir Fund’s development focus, we are unlocking vital resources for SMEs to thrive.”
Dr. Essam AlQuorashy, Secretary General for Badir Fund, added:
“This investment from the Arab Fund will unlock new growth opportunities for small businesses, promote their expansion, and foster financial inclusion for underserved segments throughout the Arab world.”
Shorooq’s portfolio highlights the impact of structured financing on SME growth. Fintech company Abhi secured $15 million in debt financing led by Shorooq to expand its earned wage access services, supporting financial inclusion for employees and small businesses. Similarly, self-storage firm The Box obtained $12.5 million to enhance its operations.
The Badir Fund’s investment in Nahda Fund II demonstrates a shared commitment to fostering SME development and sustainable economic progress in the region by improving access to credit and unlocking new opportunities.
About Shorooq
Founded in 2017, Shorooq is a multi-dimensional investment firm focused on innovative technology companies in MENA and beyond. With deep expertise in fintech, platforms, software, and deep tech, Shorooq has backed leaders such as Pure Harvest Smart Farms, Nymcard, Tamara, Sarwa, Lean Technologies, TruKKer, Mozn, and Lendo.
Operating across the UAE, Saudi Arabia, Egypt, and Korea, Shorooq combines local presence with a strong commitment to partnering with founders and delivering attractive investor returns.
Visit www.shorooq.com
Shorooq Partners Ltd is regulated by the ADGM Financial Services Regulatory Authority (FSRA FSP: 190004) as a Category 3C Fund Manager.
About Badir Fund for Developing Small and Medium Enterprises
Established in 2009 by the Arab Economic and Social Development Summit, Badir Fund is a pioneering financial facility managed by the Arab Fund for Economic and Social Development. It has disbursed $1.5 billion in loans to support SMEs, encourage private capital flows, and provide technical assistance across Arab countries. Additionally, it has awarded $3.5 million in grants to promote SME growth in the region.
Learn more at https://www.arabfund.org/badir-fund/
Media Contacts
Shorooq Group
Tarek Fouad, Chief Marketing Officer
Email: press@shorooq.com | Direct: tfouad@shorooq.com
Arab Fund for Economic and Social Development
Mohamed Eissa, Head of Communications
Email: m.eissa@arabfund.org
