Zelo, a UAE-based private-credit platform and subsidiary of IHC, has secured US$715 million in capital allocation from its parent company to expand supply chain financing across the Middle East.
The allocation is among the largest in the region’s B2B financing space and aims to increase liquidity access for SMEs across core economic sectors.
The platform provides SMEs and mid-market suppliers with financing against receivables owed by government entities, large corporates, and regional businesses.
Zelo converts receivables linked to some of the region’s largest buyers into investable private-credit assets.
This approach aims to support broader participation in global institutional private-credit markets.
The Middle East faces a structural US$250 billion SME credit gap, driven by extended payment cycles and limited access to working capital.
Zelo addresses this by offering near-instant liquidity through invoice financing.
This liquidity allows suppliers to redeploy working capital into growth initiatives.
They can expand output, take on larger contracts, and invest in hiring and capacity building.
The recent capital allocation will accelerate Zelo’s deployment strategy.
The company targets US$1 billion in gross financing volume by 2026, a fivefold increase over current levels.
Zelo’s portfolio strategy relies on partnerships with institutions such as Emirates Development Bank, Trojan Construction Group, and National Marine Dredging Company.
These collaborations strengthen origination channels and enhance credit quality.
Zelo operates across sectors such as oil and gas, construction, infrastructure, healthcare, retail, FMCG, industrial services, and marine.
Syed Basar Shueb, CEO of IHC, said:
“Private credit has become one of the fastest-growing asset classes globally. Our commitment to Zelo signals confidence in the region’s ability to originate institutional-grade receivables and to play a larger role in the global private credit market.”
Dhanush Arjun, CEO of Zelo, added:
“With this milestone allocation, Zelo will continue expanding across the GCC and building a scalable private credit infrastructure platform rooted in predictable, real-economy assets.”
Featured image credit: Edited by Fintech News Middle East, based on image by Lanfira via Freepik
