Shorooq, PayLater Sign MOU to Explore Institutional Credit Facility
•February 10, 2026
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Companies Mentioned
Why It Matters
The credit facility could unlock rapid scaling for PayLater without diluting ownership, setting a benchmark for Sharia‑compliant fintech financing in the Gulf. It also signals growing investor confidence in regulated digital credit models across the region.
Key Takeaways
- •Shorooq and PayLater sign MOU for credit facility.
- •Facility aims to be institutional-grade, Sharia-compliant.
- •Funding will be non‑dilutive, preserving founder ownership.
- •Supports PayLater’s expansion in regulated Qatari fintech market.
- •Highlights growing demand for structured credit in Gulf fintech.
Pulse Analysis
The Middle East’s fintech landscape is maturing quickly, with buy‑now‑pay‑later (BNPL) services emerging as a key driver of digital consumption. PayLater, the first Qatar Central Bank‑licensed BNPL platform, differentiates itself by offering fully Sharia‑compliant products that cater to both merchants and consumers seeking interest‑free credit. Its rapid adoption reflects a broader appetite for fintech solutions that respect Islamic finance principles, a segment that has historically been underserved by conventional lenders. As regulatory oversight tightens, PayLater’s licensed status positions it as a trusted conduit for responsible credit.
Shorooq’s decision to pursue an institutional‑grade credit facility aligns with its multi‑strategy mandate to provide venture‑backed, credit‑focused capital to technology‑enabled businesses. By structuring a non‑dilutive, Sharia‑compliant loan, the firm can supply growth capital while preserving founder equity, a model increasingly favored by fintech founders wary of equity dilution. The facility’s scalability promises to meet PayLater’s expanding merchant network and consumer base, reducing reliance on ad‑hoc financing. This partnership showcases Shorooq’s capability to design bespoke financing structures that bridge the gap between venture capital and traditional banking.
The MOU signals a turning point for institutional investors eyeing the Gulf’s regulated fintech sector. As more platforms achieve central‑bank licensing and adhere to Islamic finance standards, the market is primed for larger, structured credit products that can fuel regional expansion. Successful execution could encourage other Sharia‑compliant fintechs to seek similar funding, accelerating the development of a robust, compliant digital credit ecosystem. Ultimately, the collaboration between Shorooq and PayLater may set a precedent for how private‑equity firms support high‑growth fintechs without compromising ownership or religious guidelines.
Shorooq, PayLater sign MOU to explore institutional credit facility
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UAE-based investment firm Shorooq has signed a Memorandum of Understanding (MOU) with PayLater during Web Summit Qatar to explore the structuring of a scalable, institutional-grade credit facility.
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PayLater is Qatar’s first QCB-licensed, Sharia-compliant BNPL provider. It operates under the supervision of the Qatar Central Bank, and has seen growing adoption among merchants and consumers.
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The potential transaction would support PayLater’s next phase of growth, providing non-dilutive credit capital aligned with Sharia principles and tailored to the needs of a regulated fintech platform.
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For Shorooq, the MOU reinforces its positioning as an active player in structured credit, with a focus on designing bespoke financing solutions for high-growth, technology-enabled and regulated businesses.
Press release:
Shorooq, a leading multi-strategy investment firm focused on venture capital, credit, and alternative investments, has signed a Memorandum of Understanding (MOU) with PayLater, Qatar’s first QCB-licensed, Sharia-compliant Buy Now Pay Later (BNPL) provider, to explore structuring a scalable, institutional-grade credit facility to support PayLater’s next stage of growth.
PayLater has established itself as a category pioneer in Qatar, operating under the regulatory oversight of the Qatar Central Bank (QCB) and offering fully Sharia-compliant BNPL products tailored to local market needs. Over the past few years, the company has demonstrated strong execution, disciplined underwriting, and growing merchant and consumer adoption—positioning it as a natural candidate for large-scale, structured credit solutions.
For Shorooq, the MOU underscores the firm’s continued leadership in the credit space and its ability to design bespoke financing structures for high-growth, regulated platforms. The potential transaction would align with Shorooq’s broader strategy of supporting fintech and technology-enabled businesses with non-dilutive capital that accelerates growth while preserving founder ownership.
Mahmoud Adi, Founding Partner at Shorooq, said, “This MOU reflects our conviction that the next phase of fintech growth in the region will be driven by disciplined, well-regulated platforms that can absorb institutional capital at scale. PayLater has built a strong foundation as Qatar’s first QCB-licensed, Sharia-compliant BNPL provider, and we see significant potential in working together to structure a credit solution that supports sustainable growth while setting a new benchmark for the market.”
Dr. Devid Jegerson, Chief Executive Officer of PayLater, added: “Shorooq is a strong validation of the progress PayLater has made since inception. As we scale our platform, access to sophisticated, Sharia-compliant credit structures is critical to serving our customers and merchant partners responsibly. We look forward to exploring a partnership that supports our long-term vision and reinforces Qatar’s position as a leading fintech hub.”
The discussions come at a time of increasing regional focus on Sharia-compliant digital finance and the development of institutional funding infrastructure to support regulated fintech platforms.
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