Tali Ventures, the venture capital arm of Saudi Arabia’s Stc Group, has invested in Tarmeez Capital, a fintech platform that specializes in sukuk and debt instruments.

Led by CEO Nasser Alsaadoun, Tarmeez Capital has facilitated over 2 billion riyals (US$533 million) in Sharia-compliant financing to date.

The company plans to use the investment to expand its offerings in the sukuk and debt markets.

However, the financial terms of the deal were not disclosed.

Saudi Arabia’s Capital Market Authority aims to grow the country’s sukuk and debt market to 954 billion riyals (US$254.4 billion) by 2030.

This goal aligns with the nation’s broader economic diversification efforts.

🔗 Source: Tali Ventures

🧠 Food for thought

1️⃣ Saudi Arabia accelerates its Islamic finance ecosystem as part of Vision 2030

The investment in Tarmeez Capital reflects Saudi Arabia’s broader ambition to expand its sukuk and debt market to SAR 954 billion by 2030, as outlined by the Capital Market Authority.

This strategic focus has already shown results, with Saudi Arabia previously establishing itself as the second-largest sukuk issuer globally, primarily in Riyal-denominated instruments 1.

The sukuk market’s significance is evident in its historical growth trajectory, with cumulative global issuances exceeding $1 trillion since the first modern sukuk was issued in 1996 1.

Tarmeez’s facilitation of over SAR 2 billion in Sharia-compliant financing demonstrates the increasing demand for Islamic financial instruments that represent ownership in tangible assets rather than conventional interest-bearing bonds 2.

This investment aligns with the kingdom’s vision to diversify its economy beyond oil, with financial services and technology being key focus areas for sustainable economic growth.

2️⃣ Corporate venture capital emerges as a catalyst for Saudi fintech revolution

STC Group’s establishment of Tali Ventures represents a growing trend of state-linked enterprises using corporate venture capital to accelerate the kingdom’s digital transformation agenda.