DIFC-based fund will invest in private credit opportunities across the Gulf, focusing on businesses underserved by traditional lenders.
Dubai: Dubai-based Damanat has announced its sponsorship of Damanat Fund CEIC Limited, a privately held tokenised trust fund based in the Dubai International Financial Centre (DIFC) with a target size of US$100 million.
According to information shared with FinBold, the fund is designed to address an estimated US$250 billion financing gap for small and medium-sized enterprises (SMEs) across the GCC.
The fund’s launch comes amid continued challenges in SME financing. Despite contributing more than half of the UAE’s GDP and employing the majority of the private-sector workforce, SMEs receive less than 10 per cent of total bank lending, while only around 11 per cent of SMEs across the region have access to financing.
Tokenised structure
The fund is registered as a closed-end exempt trust regulated by the Dubai Financial Services Authority (DFSA) and is managed by Trulium Venture Partners Limited, with Apex Group providing corporate administration services.
Units in the fund will be issued as ZM1 Investment Tokens on ZIGChain, a Tier 1 blockchain network designed for regulated institutional investment products.
Access to the investment will be restricted to investors who meet the DFSA’s professional client criteria.
According to the company, the tokenised structure introduces a blockchain-based ownership and settlement layer without altering the fund’s underlying credit profile or investment strategy.
Focus on private credit
The fund will invest in private credit opportunities across the GCC, targeting businesses whose financing requirements are not fully met through traditional lending channels.
Damanat said the investment approach aligns with regional economic development priorities, including Saudi Vision 2030 and the UAE Centennial 2071 strategy.
Industry comments
Peter Hughes, Founder and Chief Executive Officer of Apex Group, said: “Damanat is supporting the creation of a new category in digital assets. Combining an institutional structure with digital distribution within a regulatory framework regulated by the DFSA sets the standard for how this market should be built, and this fund demonstrates the model operating at an institutional scale.”
He added: “We are proud to support the underlying infrastructure and look forward to partnering further on projects that Damanat already has underway.”
Broader strategy
The fund represents Damanat’s first live deployment as part of a wider strategy to build what the company describes as a global marketplace for digital Islamic assets.
According to the company, institutional offerings in this segment remain limited despite growing demand.
Damanat noted that global Islamic finance assets are projected to reach US$9.7 trillion by 2029, citing data from Refinitiv and the Islamic Research and Training Institute.
The company said it is also developing a broader asset pipeline spanning private credit, receivables and real estate.
Source: Emirates 24|7