Riyada Enterprise Development (RED)

Abraaj Capital established Riyada Enterprise Development (RED) in 2009 as an independent platform dedicated to investing in the vibrant small and medium enterprise (SME) segment across the MENASA region.

SMEs underpin the economies of the region, accounting for about 70 per cent of employment and some 30 per cent of GDP. Given this contribution to employment, SMEs are crucial to the corporate landscape, and are an important source of social and economic stability, particularly in developing countries where they represent a much higher proportion of all business activity. Given a historic lack of consolidation in regional markets, SMEs continue to command a significant market share in traditional sectors as well as a disproportionately high market share in new segments of the economy. They dominate many of the fast-growing industries in the region, including technology and media. They also play a critical role in transforming traditional industries, such as healthcare and education, through innovative business models.

Yet, despite the potential for growth, SMEs in the region face structural obstacles that impede their expansion. Most fundamental is limited access to capital, with traditional forms of growth finance such as bank debt and venture capital/private equity in short supply across the region. Those companies that can secure the right kind of capital will have a significant advantage over those that do not.  Beyond capital, SMEs need strategic support including access to new markets, particularly regional markets that can deliver significant scale beyond a home market, as well as best in class human resources and business practices. RED has been established specifically to provide a solution to each of these impediments to growth, drawing upon a dedicated 30+ person team of investment and operating professionals on the ground in all of its markets, further supported by the broader Abraaj platform.