{
  "id": 18047334,
  "title": "MENA's scaleups have a capital stack problem",
  "url": "https://urgent.news/2026/11/03/menas-scaleups-have-a-capital-stack-problem",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-03T22:58:51.000Z",
  "source": {
    "name": "Wamda",
    "slug": "wamda",
    "url": "https://www.wamda.com/2026/10/mena-scaleups-capital-stack-problem"
  },
  "original_language": "en",
  "account": "Scaleups in the MENA region are facing a capital stack problem, with most financing being non-dilutive rather than equity-based. Instead of purchasing shares through traditional venture rounds, many scaleups are seeking balance sheet financing from lenders. This shift has led to a growing emphasis on debt-ready companies with predictable cash flows, such as those with receivables, invoices, and contracted revenue. Debt can often be a more cost-effective option than equity, especially when dealing with assets that generate stable income. For instance, Saudi lender Lendo and UAE-based CredibleX have secured significant facilities to fund SME financing and B2B marketplaces. Companies that can demonstrate clean, audited financials and strong unit economics are more attractive to credit investors. While equity funding remains crucial for innovative, high-risk ventures, a balanced approach that incorporates debt financing can help scaleups manage costs and preserve ownership. The MENA region's growing liquidity pools, particularly for Shariah-compliant structures like Murabaha and asset-backed facilities, offer promising opportunities for debt financing. By adopting a more nuanced capital structure, MENA scaleups can optimize their financing strategy, ensuring they have the necessary resources to grow while minimizing unnecessary dilution.",
  "summary": "An article by Sayed Adnan, Chief Business Officer, Graystone Capital Today, the largest cheques written to MENA scaleups do not buy shares. They are renting balance sheets. Yet most founders still picture their financing journey as a ladder of lettered rounds, each rung purchased with another slice of the cap table. That mental model is now costing them real money. The biggest financing announced…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}