Startups in Saudi turn increasingly to debt financing
As equity rounds slow, startups in Saudi are leaning more on debt, according to a Bloomberg report carried by Al Jazeera.
Al Jazeera, citing Bloomberg, reported that startups in Saudi are increasingly turning to debt financing as equity fundraising slows amid fallout from the regional conflict.
- Stride Ventures: One of the first venture debt firms to enter the Saudi market, it has committed about $90 million to Saudi deals in roughly a year and aims to deploy more than double that in its first two years in Riyadh. Recent deals include BRKZ
- Outlook: Farihah Ansari, a partner at Stride, said she expects at least two more deals before year-end
- Rqmi: The crowdfunding platform has facilitated up to $107 million in debt financing this year, double its 2025 total
- Eyrad: The alternative finance firm has received more than $1 billion in financing requests in 18 months
According to the report, the Capital Market Authority has not approved new main-market listings since April.
What it means for founders in Saudi
Debt doesn't suit every company, but it is now a serious option for businesses with recurring revenue or assets they can finance. Before signing, understand the repayment terms and collateral well, because debt pressures cash flow in a way an equity round does not.
Sources: Al Jazeera Net.
