SANAD Equity: Empowering MSMEs Through Innovation

At the outset of SANAD’s equity journey, one challenge was clear: in many underserved markets, financial inclusion was constrained not only by limited debt capital, but also by a lack of financial institutions equipped to serve small businesses and entrepreneurs.

To address this gap, SANAD’s first Equity Sub-Fund (ESF I), established in 2012 (USD 35M) focused on greenfield institution building. Rather than investing solely in existing financial players, SANAD partnered with experienced local and international stakeholders to establish non-bank financial institutions from the ground up.

These institutions were designed to serve segments often overlooked by traditional banking; micro and small enterprises, entrepreneurs, and the “missing middle” between microfinance and commercial lending. By supporting the creation of these platforms, SANAD helped lay the institutional foundations necessary for sustainable financial inclusion. 

Global Corp for Financial Services (GCFS) is an Egyptian greenfield leasing and factoring holding company established with SANAD Equity Sub-Fund support in 2015. While originally launched in partnership with local investor Wadi Degla Holding, Ezdehar played a pivotal role in GCFS’s development after acquiring a 60% stake from Wadi Degla in 2018. With Ezdehar’s involvement, alongside continued support from the fund—including strategic guidance, network connections, and targeted capacity building—GCFS steadily expanded its operations and market presence. By the time of the fund’s exit in 2022, the company had grown into one of Egypt’s leading independent financial institutions, with a strong strategic focus on serving small and medium-sized enterprises. These outcomes highlighted the value of patient capital in building durable financial infrastructure, like GCFS, while also providing important lessons for the next phase of SANAD’s equity strategy.

Over the past decade, the financial services landscape across MENA changed significantly. Advances in technology, the emergence of fintech ecosystems, and the growing adoption of digital financial services transformed how individuals and businesses interact with financial institutions.

In response, SANAD adapted its approach when launching the second Equity Sub-Fund (ESF II) in 2019 (USD 59M). While the core mission remained unchanged—expanding financial inclusion—the fund evolved to support technology-enabled financial service providers capable of reaching underserved clients more efficiently and at scale.

These companies leverage digital tools to reduce costs, streamline operations, and offer products tailored to the needs of small businesses and individuals historically excluded from formal finance.

With a larger investment base and a more diversified portfolio, ESF II has supported more than 10 companies operating across multiple markets and sectors. 

Founded in 2016, POSRocket set out to build a comprehensive point-of-sale ecosystem for retail businesses across the Middle East, beginning in Jordan. With early support from the SANAD Equity Sub-Fund II, the company expanded steadily across the region, scaling its technology solutions and operational footprint. By the time of SANAD’s exit in 2022, POSRocket had grown into a regional platform with more than 35 operating companies and over 600 employees, supporting thousands of retail businesses through digital tools that strengthen operational efficiency and market access. 

Throughout this evolution, one element of SANAD’s equity approach has remained constant: its strong regional focus. Rather than pursuing global diversification, SANAD has concentrated on the MENA region, and select countries in sub-Saharan Africa developing deep market knowledge, trusted partnerships, and a nuanced understanding of local opportunities and risks. This long-term engagement has allowed the fund to identify investments that combine commercial viability with meaningful developmental impact, supporting financial institutions that strengthen local economies and expand access to finance. Through this approach, SANAD’s equity investments have contributed not only to the growth of individual companies but also to the broader development of financial ecosystems across the region. 

 A Financial Force with Lasting Results 

SANAD’s equity journey demonstrates how patient, strategic investment can strengthen financial ecosystems over time. From establishing new financial institutions to supporting digital innovators, the fund has continuously adapted its approach while remaining anchored in its core mission. More than a decade of equity investments has helped build institutions, support innovation, and expand access to finance across some of the region’s most complex markets. As financial systems continue to evolve, SANAD remains committed to supporting the institutions and entrepreneurs shaping the next generation of inclusive finance in MENA and SSA.