Riyadh, Saudi Arabia – Sakani Capital, the Saudi investment platform licensed by the Capital Market Authority (CMA) and specializing in alternative investments, announced that it has obtained approval from the Saudi Capital Market Authority (CMA) to launch the Sakani Direct Lending Fund, the first open-ended direct financing fund in the Kingdom and the region. This step represents a significant regulatory achievement for the non-banking finance sector in Saudi Arabia.

This fund represents a qualitative shift in providing structured credit solutions that meet the needs of small and medium-sized enterprises, technology companies, and venture capital funds, through a flexible, institutional mechanism that provides sustainable financing without the need to relinquish ownership stakes. The fund's open-ended structure allows investors to enter and exit flexibly and without lengthy holding periods, while maintaining cyclical liquidity and benefiting from credit opportunities with stable returns.

The fund relies on a global team of fund managers, finance, and investment experts to operate, and leverages an advanced technology infrastructure for loan management, risk assessment, and the issuance of periodic reports to investors, enhancing transparency and efficiency and ensuring a scalable institutional experience.

Sakana Capital has already begun building a robust opportunity portfolio exceeding $100 million, driven by high demand from technology companies seeking structured financing solutions, amid growing interest from institutional investors who have expressed initial interest in investing in the fund. The company soon intends to open its doors to a wider range of qualified investors, including family offices and experienced investors.

In this context, Fares Bardisi, CEO of Sakana Capital, who has over two decades of experience in corporate finance and private equity in sectors such as technology, healthcare, and real estate, emphasized the urgent need to bridge the financing gap for both traditional and innovative SMEs. He said, "This represents a significant achievement not only for Sakana, but also for the Kingdom's financial sector, as SME lending in the Kingdom reached SAR 329.23 billion in the third quarter of 2024, equivalent to only 9.1% of total bank credit, significantly below the Saudi Vision 2030 target of 15-20%. We are filling a real financing gap through a flexible and efficient model specifically designed to meet the needs of fast-growing companies."

Walid Al-Ballaa, Managing Partner at Sukna Ventures and a member of the fund's investment committee, who has over two decades of experience in technology and private equity between Silicon Valley and Saudi Arabia, praised the CMA's decision, describing it as a step that will facilitate investors' provision of the necessary support to entrepreneurs and small and medium-sized enterprises (SMEs) at a pace that matches modern market dynamics, without any bureaucratic complications. This will contribute to accelerating innovation and enhancing the growth of promising companies across various sectors.

Al-Balaa added: "The technology and startup ecosystem in the region has evolved significantly, but traditional financing tools have not kept pace with this growth. We created this fund to meet the needs of entrepreneurs and provide them with financing that aligns with their business models and ambitions."

The launch of the Sakani Direct Lending Fund represents an extension of Sakani Ventures, the company's technology investment arm, known for supporting high-growth startups in the digital infrastructure , fintech, and logistics sectors. This achievement comes at a time when the Kingdom is accelerating its efforts to diversify its economy, consolidating Sakani Capital 's position as a key driver of building the financial infrastructure for innovation and supporting sustainable economic growth.

About Sakani Capital:

Sakana Capital is a licensed Saudi investment platform offering select opportunities in venture capital, private equity, and private equity. Evolving from Sakana Ventures, it has a proven track record in early-stage investing and provides institutional-grade financial solutions focused on high-growth, innovative sectors in the Kingdom and the wider region.

For more information, please visit www.suknacapital.com

For media inquiries, please contact:

Abdul Aziz Khalaf

Media Relations Officer

+201020639222

abdelaziz.khalaf@publicistinc.com

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