The Middle East and North Africa (MENA) region’s investment landscape is witnessing a transformative shift with the launch of Sukna Global Fund I (SGF I). This groundbreaking initiative, spearheaded by Abu Dhabi-based Sukna, marks MENA’s first open-ended, Sharia-compliant direct financing fund, targeting an initial size of $250 million. Designed to inject crucial capital into high-growth sectors, SGF I is set to empower businesses across real estate, healthcare, education, logistics, and technology, addressing a critical gap in regional financing.
By the Numbers
- Target Fund Size: $250 million for Sukna Global Fund I.
- Key Investment Sectors: Focus across five strategic verticals including real estate, healthcare, education, logistics, and technology.
Bridging the MENA Funding Gap
While the MENA startup ecosystem has seen exponential growth in venture capital funding, particularly for early-stage ventures, a significant “missing middle” often persists for growth-stage companies. These businesses frequently require substantial capital for scaling operations, developing infrastructure, or expanding into new markets, a need that traditional equity or debt structures may not fully address.
Sukna Global Fund I directly tackles this challenge by offering direct financing, a flexible alternative that can provide capital without immediate equity dilution or the rigidities of conventional loans. This approach is particularly beneficial for ventures with longer gestation periods or those in asset-heavy industries. By providing tailored funding solutions, Sukna aims to accelerate the growth trajectories of promising enterprises, fostering innovation and economic diversification across the region.
This initiative could redefine how promising ventures in the region access capital for their next phase of growth, offering a much-needed bridge between early-stage funding and large-scale public market access.
The Rise of Ethical and Sustainable Capital
A distinctive feature of SGF I is its adherence to Sharia-compliant principles, a growing trend in global finance. Sharia-compliant investments prohibit interest (riba), speculative practices, and investments in industries deemed unethical, such as those related to alcohol, tobacco, or conventional financial services. This framework aligns seamlessly with modern Environmental, Social, and Governance (ESG) investing criteria, appealing to a broader spectrum of investors seeking both financial returns and positive societal impact.
The fund’s open-ended structure further enhances its appeal, allowing for continuous investment and capital deployment over an extended period, reflecting a long-term vision for sustainable growth. This commitment to ethical and responsible investment positions Sukna at the forefront of a burgeoning segment of the MENA financial market, attracting capital from investors who prioritize sustainability and responsible governance alongside profitability.
Empowering Strategic Sectors Across MENA
Sukna Global Fund I is strategically poised to invest in sectors critical to the MENA region’s future economic development. These include:
Real Estate: With rapid urbanization and ambitious smart city projects across the GCC, there’s immense demand for innovative real estate developments, including affordable housing and sustainable urban infrastructure. Direct financing can fuel large-scale, long-term projects that redefine urban living.
Healthcare: The region faces growing healthcare demands due to expanding populations and an increasing focus on well-being. Investments here will support the development of advanced medical facilities, digital health solutions, and healthcare technology, enhancing accessibility and quality of care.
Education: MENA governments are heavily investing in human capital development. This includes the expansion of educational institutions, the integration of EdTech solutions, and vocational training centers. Direct funding can help scale these initiatives, preparing the next generation for a dynamic global economy.
Logistics: Leveraging its strategic geographic location, the MENA region is rapidly becoming a global logistics hub. The booming e-commerce sector further necessitates robust supply chain infrastructure, warehousing, and last-mile delivery solutions. Capital infusion will enhance efficiency and connectivity.
Technology: The diverse tech landscape in MENA continues to flourish, encompassing fintech, e-commerce, artificial intelligence, and SaaS. Direct financing can propel innovative tech companies from promising startups to regional leaders, driving digital transformation across all industries.
About Sukna
Sukna is an Abu Dhabi-based alternative investment firm regulated by the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA). Led by CEO and Managing Partner Mohamed Alkhaja, the firm specializes in providing direct financing solutions to high-growth companies across the MENA region. Sukna’s core philosophy centers on fostering long-term value creation and achieving a positive societal impact through ethical and sustainable investment practices, positioning itself as a key player in the region’s evolving financial ecosystem.
Looking Ahead
The launch of Sukna Global Fund I represents a significant milestone for the MENA region, particularly for Abu Dhabi’s ambitions as a leading global financial hub. By introducing the first open-ended, Sharia-compliant direct financing fund, Sukna is not only addressing a vital funding gap but also setting a precedent for innovative and ethically grounded investment models.
The success of SGF I will be a crucial indicator of the appetite for alternative financing structures and Sharia-compliant investments within the MENA startup and corporate landscape. As the fund begins to deploy capital into its target sectors, its impact could catalyze further growth, inspire similar initiatives, and contribute significantly to the economic diversification goals of nations across the region. Entrepreneurs and investors alike will be keenly watching the fund’s contributions to the next wave of MENA success stories.
Source: Zawya
