SVC invests $10M in Ruya Private Capital I to back Saudi SMEs

Saudi Venture Capital has invested $10 million in Ruya Private Capital I LP, a private credit fund managed by Ruya Partners, according to a statement on Wamda.

The fund will offer private debt instruments as capital solutions to SMEs, focusing on mid-market companies in Saudi Arabia and the region.

Dr Nabeel Koshak, CEO and Board Member at SVC, stated that Ruya Partners' private credit fund investment is part of SVC's Investment in Funds Program. "The investment also comes as a result of the increasing demand for venture debt and private debt by Saudi startups and SMEs and to implement SVC's strategy related to the launch of the "Investment in Venture Debt Funds and Private Debt Funds" product to fill financing gaps in the ecosystem," he added.

SVC, a subsidiary of Saudi’s SME Bank, aims to stimulate and sustain financing for startups and SMEs by investing $2 billion through funds and co-investment. SVC has invested in 43 funds, which have invested in more than 700 companies.

Recently, the Venture Capital firm invested $30 million in IMPACT 46's Fund III, an asset management and advisory firm, to invest in Saudi growth-stage companies, pre-IPO businesses, seed-stage startups, and promising Middle East startups.

Ruya Partners, established in 2020 by Omar Al Yawer, Mirza Beg, and Rashid Siddiqi, is an independent private credit firm that offers funding solutions to private sector companies in developing markets.

"We firmly believe that offering private credit capital solutions to companies in a manner which is non-dilutive to shareholders will serve as a powerful catalyst for their future growth and should contribute towards the continued expansion and development of the SME ecosystem," Mirza Beg and Rashid Siddiqi, Founding Partners, Ruya Partners, added.

Dr Koshak and Yawer, Partner at Ruya Partners, also signed a subscription agreement at the event. The ceremony was attended by Nora Alsarhan, Chief Investment Officer, Haifa Bahaian, Chief Legal Officer, Beg, and Siddiqi, Founding Partners.