Saudi Arabia: A Dubai-based human resources consultancy firm has become the first company to receive financing from a new $300 million Shariah credit fund anchored by Saudi Arabia’s sovereign wealth fund, it was announced this week.

Reach Group focuses on supplying skilled and semi-skilled employees to government, private-sector companies and quasi-public entities on long-term contracts.

The company has 6,000 outsourced full-time employees in the UAE, making it among the largest temporary staffing providers in the country.

It is planning to use its new $20 million investment to expand into the Saudi market through the acquisition of a local outsourcing company in the Kingdom.

“This transaction provides additional capital for us to expand into Saudi Arabia, which we’ve viewed as a natural growth area for our business,” said Reach Group’s founder and CEO Malik Melhem.

The $300 million Shariah Credit Opportunities Fund was launched in February by the Dubai-headquartered National Bank of Kuwait Capital Partners (NBKCP), a subsidiary of Kuwait’s biggest bank.

The fund’s anchor investor is the Saudi Public Investment Fund, and is expected to make 10-12 investments of $15-$50 million over the next eight years. Reach Group is the first such investment to be announced.

“Reach is a highly reputable leader in outsourced staffing solutions in the region. We were pleased to work with its founder and management team to structure a financing solution that allowed Reach to enter the Saudi market,” said NBKCP CEO Yaser Moustafa.