Riyadh-based fintech Safqah Capital has secured $15.2 million in one of the Kingdom's largest-ever pure equity seed rounds. The funding, co-led by Shorooq, anb Seed Fund, and Rua Growth Fund, aims to build foundational infrastructure for Saudi Arabia's real estate sector. This significant investment highlights growing confidence in companies powering the nation's ambitious Vision 2030 development goals and reshaping its property landscape.
Addressing a Critical Market Gap
Saudi Arabia's real estate and infrastructure pipeline, valued at over $1.1 trillion, presents a massive opportunity but also a significant challenge. Small and medium-sized enterprise (SME) developers, who are crucial to delivering the Kingdom's housing supply, often face steep hurdles with traditional banks. Lengthy approval cycles and rigid underwriting practices create capital bottlenecks that slow project timelines and hinder overall market growth.
A Developer-Centric Financing Model
Safqah directly addresses this financing gap with its Shariah-compliant debt-financing solution, authorized by the Capital Market Authority. In just 18 months, the company has financed over 70 projects worth more than $800 million while maintaining a zero-default record. Its model ensures security through high collateralization rates of over 248% and a milestone-based disbursement framework, building trust with investors.
"Banks were not built for developers — we were," stated Abdullah Alsubaie, Co-Founder and CEO of Safqah. He emphasized that the company has engineered a complete ecosystem where developers can access capital more rapidly and efficiently. This specialized approach not only accelerates project delivery but also strengthens risk controls and monitoring for all stakeholders involved in the development process.
More Than a Lender: Building Foundational Infrastructure
Safqah is positioning itself as more than a mere lender by developing a comprehensive digital "operating system" for the real estate industry. The platform integrates structured financing, real-estate underwriting, and developer-focused software into a single, streamlined workflow. This approach leverages advanced data analytics and AI to improve project monitoring, transparency, and overall decision-making for all parties involved.
This vision is echoed by lead investors like Shane Shin, Founding Partner at Shorooq, who described Safqah as "foundational infrastructure." He noted that the company has built a model uniquely designed for the rapid pace of development in Saudi Arabia while meeting institutional and regulatory standards. This endorsement underscores Safqah's potential to become an indispensable part of the Kingdom's real estate machinery.
Strong Investor Confidence and Vision 2030 Alignment
The round attracted over 12 institutional backers, signaling widespread conviction in Safqah's mission to support national objectives. Khalid S. Alghamdi of anb capital praised the company's blend of technological innovation and strong credit governance. Similarly, Turki Aljoieb of Rua Growth Fund highlighted how Safqah unlocks a critical bottleneck, directly supporting Vision 2030's homeownership and economic development targets.
Strategic Use of Capital and Future Outlook
The newly acquired $15.2 million will be strategically deployed to fuel the company's next phase of growth. Safqah plans to aggressively enhance its digital platform, incorporating more sophisticated AI tools for risk assessment and underwriting. A primary focus will be on expanding its financing capacity to meet the surging demand from developers across the Kingdom, increasing both the size and number of funded projects.
Safqah Capital's landmark seed funding round marks a pivotal moment for both the company and Saudi Arabia's real estate sector. By providing tailored, technology-driven financing solutions, the firm is not just funding projects but is building essential infrastructure for SME developers to thrive. This strategic infusion of capital positions Safqah to play a crucial role in accelerating development and realizing the ambitious goals of Vision 2030.