Zelo, the UAE-based private-credit platform and a subsidiary of International Holding Company (IHC), has secured a landmark $715 million capital allocation from its parent firm. This substantial commitment is set to scale the company's supply chain financing solutions across the Middle East. The funding aims to significantly enhance liquidity for small and medium-sized enterprises (SMEs), addressing a critical need within the region's core economic sectors.
Addressing a Critical Market Gap
The Middle East's business landscape is currently hampered by a structural $250 billion credit gap for SMEs. This deficit is largely driven by extended payment cycles and restricted access to traditional working capital, which stifles growth potential. Consequently, many promising enterprises are unable to expand their operations, take on larger contracts, or invest in necessary capacity building, limiting their economic contribution.
Zelo's Innovative Financing Model
Zelo directly confronts this challenge by providing SMEs and mid-market suppliers with near-instant financing against receivables owed by government entities and large corporations. The platform effectively converts these invoices into investable private-credit assets, unlocking trapped working capital for suppliers. This model not only provides immediate liquidity but also enables broader institutional participation in the region's burgeoning private credit markets.
By accessing this rapid liquidity, suppliers can immediately redeploy capital into vital growth initiatives. This financial flexibility empowers them to expand their output, confidently accept larger contracts, and invest in hiring and operational enhancements. Ultimately, Zelo’s solution transforms a major financial bottleneck into a powerful catalyst for business expansion and economic resilience across numerous industries.
Strategic Expansion and Ambitious Goals
The new $715 million in capital will serve as the primary engine for Zelo’s accelerated regional deployment strategy. The company has set an ambitious target to reach $1 billion in gross financing volume by 2026, representing a fivefold increase from its current activity levels. This significant scaling effort underscores the immense demand for alternative financing solutions and Zelo's readiness to meet it.
Zelo’s portfolio strategy is fortified by strong institutional partnerships that expand its origination channels and reinforce credit quality. Key collaborators include prominent entities such as Emirates Development Bank, Trojan Construction Group, and the National Marine Dredging Company. These alliances are crucial for its operations across diverse sectors like oil and gas, construction, healthcare, and retail, ensuring a robust and high-quality asset base.
Leadership Vision for Regional Growth
Syed Basar Shueb, CEO of IHC, highlighted the growing global prominence of private credit as an asset class. He stated that IHC's commitment to Zelo signals strong confidence in the region's capacity to originate institutional-grade receivables. This investment positions the Middle East to assume a more significant role within the global private credit market, fostering a more diversified financial ecosystem.
Echoing this sentiment, Zelo CEO Dhanush Arjun emphasized that the milestone allocation will fuel the company's expansion across the GCC. He articulated a vision for building a scalable private credit infrastructure platform that is firmly rooted in predictable, real-economy assets. This strategic focus aims to create a sustainable and impactful financing framework that supports long-term regional development and stability.
This substantial capital injection marks a pivotal moment for Zelo and the broader SME sector in the Middle East. By channeling $715 million into supply chain financing, IHC and Zelo are not just closing a credit gap but are actively fueling regional economic diversification and resilience. The initiative promises to unlock significant growth potential for thousands of businesses, solidifying the region's position as an emerging hub for innovative financial solutions.