Dubai’s Shuaa Capital launches $250m venture debt fund

Dubai’s asset management and investment banking platform, Shuaa Capital has announced the launch of SHUAA Venture Partners, a $250m Shari’ah fund, focused on venture debt investments.

The fund has been established to support the growth of regional technology and technology-enabled leaders seeking alternative sources of funding without significantly diluting their shareholding, official news agency WAM reported.

The fund claims to be the largest venture debt fund in the GCC.

SHUAA Capital launches largest regional venture debt fund. Read more: https://t.co/MC9eKGg2jX#VentureDebt #GCC #growth #technology #leaders #Funding #investments #investors #startup pic.twitter.com/s0504kwRMx

— SHUAA Capital (@SHUAA_Capital) March 23, 2022

Natasha Hannoun, head of debt at Shuaa Capital, said, “SHUAA Venture Partners will provide alternative capital solutions to high growth companies across the GCC. We aim to support the growth of businesses, create jobs, lead further developments in innovation and technology, support economic diversification and guide founders towards realizing their vision.

“Our investors have the opportunity to diversify into a new asset class in technology, with a shorter investment horizon, frequent distributions and attractive financial returns”

Investments in growth companies in the GCC have been dominated by early-stage transactions, with few able to support businesses throughout their growth cycle. As a result, several growth-stage companies have limited access to larger pools of capital and non-equity financial solutions; a gap which needs to be filled.

The GCC has seen a 112 per cent year-on-year increase in venture capital transactions, with total investments of over $1.7bn across 281 deals, the majority of which have been early-stage investments. Venture debt regionally has increased 4.2x from 2020, with a total of $257m deployed into 14 investments.

Earlier this week, Shuaa Capital completed a strategic investment in UAE-based fintech, Souqalmal.

Read: Dubai’s Shuaa Capital acquires majority stake in Souqalmal