Shuaa Capital, the Dubai-based fund manager, has set up a $250 million venture debt fund in order to shore up businesses and create jobs in the region.
According to the company, the Shariah fund, to be listed in Abu Dhabi’s market, will focus on technology ventures “seeking alternative sources of capital.”
“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,” said head of debt at Shuaa Capital, Natasha Hannoun.
The move comes at a time when the Gulf is seeing a boom in venture capital transactions, having increased by 112 percent annually, with 281 deals worth $1.7 billion.
Early-stage businesses are dominating investments with VC funding to the Middle East and North Africa startups soaring to $2.6 billion in 2021.