Abu Dhabi's Shorooq Partners has hit the first close of its second private credit fund at $100 million, bringing in South Korea's IMM Investment Global as a minority partner. The fund — named Nahda Fund II — deepens ties between the UAE and South Korea while meeting surging demand for non-bank financing across the MENA tech sector.
Nahda Fund II: What the $100M Private Credit Vehicle Targets
The new Shorooq Partners private credit fund will deploy capital into MENA-based companies at the Series A stage and beyond, with an average ticket size of $10 million. Target sectors include manufacturing, industrials, financial services, and software — segments where bank lending remains constrained and startups increasingly turn to structured credit.
IMM Investment Global (IMMG), an arm of IMM Investment — South Korea's leading private equity and venture capital firm with over $6 billion in assets under management — takes a minority stake in the vehicle. The two firms previously partnered on Shorooq's inaugural tech-focused private credit fund, which is now fully deployed.
Why Non-Dilutive Financing Is Gaining Ground in MENA
Shane Shin, Founding Partner at Shorooq Partners, pointed to a structural shift in how regional founders think about capital.
"It's imperative to recognize the nuanced advantages of non-dilutive financing, particularly within the MENA region where debt financing among founders is steadily gaining momentum," Shin said.
Nathan Kwon, Partner and lead manager of the Nahda Fund series, underscored the scale of unmet demand in the market.
"Last year we saw over $400 million of deal flow after screening for companies that did not qualify for credit," Kwon said.
Track Record: Pure Harvest, Tamara, and Beyond
Shorooq's first private credit fund, launched in 2021 with IMMG, proved the model. Its portfolio includes Pure Harvest, the UAE-based smart farming startup growing fresh produce in desert conditions, and Tamara, Saudi Arabia's leading Buy Now, Pay Later platform and fintech unicorn. The first fund also backed Nymcard, Sarwa, Lean Technologies, TruKKer, and Lendo before reaching full deployment.
UAE–South Korea Investment Ties
The Nahda Fund II launch reflects broader momentum in UAE–South Korea economic cooperation. During a state visit by UAE President Sheikh Mohammed bin Zayed Al Nahyan, the UAE committed $30 billion toward South Korean energy and defense industries. The UAE President also plans a follow-up visit to South Korea to further deepen bilateral economic partnerships.
The Shorooq–IMMG partnership places private credit at the center of that growing relationship, channeling Korean institutional capital into Abu Dhabi's fast-expanding alternative investment ecosystem.
