The company claims to thoroughly vet any project before considering it for financing
Dubai-based Aras Group recently announced that its helped arrange $816 million worth of funds for over 100 projects for a wide array of sectors ranging from real estate, renewable energy, hospitality, start-ups to refineries and shipping, according to a Trade Arabia news report.
A company spokesperson commented: “Many of the projects are in advanced stage of production and implementation. We have not exited any of them due to their strong growth prospects. We are happy with the way we have been able to support the private sector with our resources and co-financers.”
“There may be fertile ground for mid-market companies to thrive in. But what is often missing from the picture is the right capital solution to propel the company to its next stage, and become the leading enterprises of tomorrow”, he stated.
Aras Group is involved with corporate finance, alternative investment, commercial lending as well as consulting business. Furthermore, they have created more than 100 special-purpose vehicles (SPVs) in the UAE and Europe to provide financial lifeline to hundreds of companies and projects and helped them come to fruition, as per the Trade Arabia news report.
According to reports, the total value of SME’s in the Gulf region is tipped to more than double over the next five years, to $920 billion.
“With banks remaining asset focused and becoming more risk-averse, mid-market firms can struggle to access traditional forms of funding. This creates a clear opportunity for private debt to fill the gap,” the spokesperson stated.
According to the company, the group is focused on creating tailor-made financial solutions to support the private sector. The company has a global network of financers who work with Aras Group to become angel investors, private equity partner, seed investors or Tier II investors along with the founders to offer customised investment solution for the needs of companies and start-ups, noted the company representative.
“The company officials also conduct background checks and financial history verification with various institutions that specialise in providing such services. If they make it through the preliminary screening then Aras Group officials discuss financing options in face-to-face meetings,” he said.
Before any project is considered for financing they will be vetted. Aras Group use proprietary research tools and media intelligence software to screen all clients to be certain of their intentions.
These projects are studied thoroughly for commercial viability and scope of success as well as long-term sustainability, the company stated.
Aras Group also mentioned that if the client brings in equity then they are entitled to a lower interest rate, as opposed to a stricter vetting process and a higher interest rate. The client then receives the payment in tranches rather than a one-shot payment, this is to feed the company in regular intervals.