SME Finance Expansion in GCC
Saudi SMEs finance is gaining new momentum across the Gulf after erad secured a major $125 million credit facility led by Jefferies with co-investment from Channel Capital. The deal marks Jefferies’ first asset-backed financing transaction in the GCC and signals growing confidence in the region’s alternative lending landscape. It also strengthens efforts to expand embedded finance solutions across key Gulf markets as more businesses seek accessible working capital. Jefferies Deal Boosts Saudi SMEs Finance The agreement comes after erad posted six-fold year-on-year growth and handled more than $700 million in funding requests from small and medium-sized enterprises. The Riyadh-based platform said the facility will accelerate its rollout of embedded finance products designed to integrate lending directly into supplier networks and business platforms. According to the company, capital allocated for Saudi SMEs will be deployed through direct financing funds licensed by the Capital Market Authority and managed by Erad Partners Capital. Co-founder Salem Abu Hammour said the deal represents a milestone for SME financing in the region, adding that embedding financial solutions into existing commercial relationships makes access to working capital more seamless. Regional Demand Strengthens Saudi SMEs Finance SMEs contribute roughly half of the region’s GDP and employ nearly two thirds of the GCC workforce, yet erad estimates a financing gap of $250 billion remains. This shortfall directly affects diversification plans such as Saudi Arabia’s Vision 2030. Jefferies’ managing director Mark Collier said the partnership will help deliver real-time capital access by combining global investment expertise with erad’s technology. Channel Capital’s CIO Johan Nisser added that the transaction expands the firm’s Sharia-compliant financing footprint and supports broader economic ambitions across the Middle East. New Sectors Support Saudi SMEs Finance The facility will enable erad to expand beyond consumer-focused financing into industries such as manufacturing, logistics, distribution and real estate services. Financing ticket sizes may reach up to 10 million Saudi riyals. Erad has also introduced an embedded finance product that allows suppliers and business platforms to offer point-of-sale financing. This model is already active in healthcare and food and beverage supply chains in Saudi Arabia and the UAE. The agreement builds on momentum from erad’s recent $33 million debt round led by Stride Ventures. Since launching in 2022, the company has processed more than SAR 250 million in SME financing with approval times under 48 hours, reinforcing its role in meeting rising demand across the region.
