A Saudi fintech and proptech company, Safqah Capital raises $15.2M in a seed funding round to grow its Shariah-compliant financing solutions for real estate developers. This funding marks one of the largest pure equity seed rounds in the Kingdom’s startup scene.
Strong Backing from Regional Investors
The seed round was led by Shorooq Partners, anb Seed Fund, and Rua Growth Fund. A wide range of investors joined the round, including Sharaka Capital, COTU Ventures, Sadu Capital, 500 Global, Suhail Ventures, MEVP, Waad Invest, and JOA Capital, among others. In total, more than a dozen backers supported the deal, reflecting growing confidence in Safqah’s mission to transform real estate financing in Saudi Arabia.
Founders and Vision
Safqah Capital was co-founded in January 2023 by Abdullah Alsubaie (CEO), Karim Merie, Abdulmalik Alothman, and Omar Alessa. The team identified a major gap in access to financing for small and medium-sized real estate developers, a group that traditional banks often overlook. Safqah aims to bridge this gap by offering fast, transparent, and compliant funding tools tailored to local market needs.
How It Works
Safqah Capital offers a platform for real estate projects. Developers get funding through structured debt. Investors can put money into deals starting at 1,000 SAR. The system uses data and AI to check projects, track progress, and lower risks. Collateral covers over 248% of loans, with funds released by milestones.
Strong License
Saudi Arabia’s Capital Market Authority (CMA) approved Safqah Capital in January 2023. It holds a license for Shariah-compliant debt tools in real estate. This makes it a trusted player in the market.
In 18 months, Safqah Capital financed over 70 projects worth more than $800 million. It reports zero defaults so far. The firm helps developers build homes and projects across the country.
Future Steps
Safqah Capital plans to use the new funds to expand its product offerings, build more advanced AI-driven risk and underwriting tools, and increase its financing capacity to support more and larger real estate projects. The company also aims to deepen its reach among SME developers as demand for housing and commercial space continues to grow under Saudi Arabia’s Vision 2030 economic transformation plan.
