In a strategic move to foster startup growth in the region, the Arab Fund for Economic and Social Development has announced a new investment through its financing arm “Bader Fund”, by partnering with “Renaissance 2 Fund” managed by Shorooq Partners.
This collaboration aims to empower SMEs to access flexible financing alternatives, especially in the face of the persistent challenges in securing traditional bank funding.
“Renaissance 2” is a fund regulated by the Financial Services Regulatory Authority (FSRA) at Abu Dhabi Global Market (ADGM), and focuses on supporting innovation and expansion in technology and essential services sectors.
Nathan Khoan, Partner and Head of Credit at Shorooq, commented:
“Partnering with Bader is a pivotal milestone in our mission to enable SMEs, leveraging the synergy of our expertise and Bader’s capital to drive sustainable economic development.”
The fund has already supported notable startups such as:
- Abhi: a FinTech company that raised $15 million to enhance its salary advance services.
- The Box: a self-storage startup that secured $12.5 million to optimize its operational efficiency.
“Bader Fund”, established in 2009 as a special account managed by the Arab Fund, is dedicated to financing and technically supporting SMEs, with a focus on private sector-led growth and employment.
Dr. Essam Al-Qurashi, Secretary-General of Bader Fund, noted:
“This investment unlocks promising opportunities for startups and contributes to expanding financial inclusion across the Arab world, especially for underbanked segments.”
More than funding, this partnership reflects a shift in the development finance philosophy, where investment funds play a role similar to development banks but with more adaptable and responsive tools to meet market needs.
