Salem Abu-Hammour (Erad): 10 Key Things You Must Know

Overview

Salem Abu-Hammour is a notable entrepreneur and co-founder of Erad, a fintech company based in Riyadh, Saudi Arabia, that offers Shariah-compliant, data-driven financing solutions to small and medium enterprises (SMEs). Founded in 2022, Erad has quickly gained recognition for its ability to provide fast and flexible funding to businesses that are often overlooked by traditional lenders. In this article, we will explore fascinating facts about Salem Abu-Hammour and his journey with Erad, reflecting on the impact and growth of the company in the world of alternative financing.

1. Founding Erad

Salem Abu-Hammour co-founded Erad in 2022 along with Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said. The fintech startup emerged as a unique player in the GCC region by offering Shariah-compliant financing tailored for SMEs in Saudi Arabia and the UAE. By utilizing a data-driven platform, Erad significantly lowers the entry barriers for SMEs to access funding, streamlining the process with approvals typically within 48 hours.

2. Educational Background

Abu-Hammour has an impressive educational and professional background. Before embarking on his entrepreneurial journey, he held roles at notable firms such as PwC and Goldman Sachs. He studied at the University of Bath, which laid a strong foundation in business analysis and financial management, complementing his real-world experience in finance.

3. Addressing the SME Credit Gap

Recognizing a massive $250 billion credit gap affecting SMEs in the GCC region, Erad seeks to bridge this divide with Shariah-compliant financing solutions. Salem and his team design the platform to utilize real-time business data such as sales, marketing, and banking records to tailor financial offerings without the need for traditional collaterallike requirements.

4. Saudi Vision 2030 Alignment

Erad aligns its operations with Saudi Vision 2030, aiming to increase SME participation in the economy, a crucial aspect of the vision. Through its innovative approach to SME financing, Erad supports the nation’s larger economic objectives by ensuring that smaller businesses have the financial resources they need to scale and contribute meaningfully to economic growth.

5. Key Investment Milestones

Erad achieved significant fundraising success, starting with a $2.4 million pre-seed round in 2022. More recently, in April 2025, the company secured $16 million in a pre-Series A funding round led by well-known investors such as YCombinator and Nuwa Capital. This investment aims to fuel Erad's expansion across the region and strengthen its product offerings.

6. A Mission for Financial Inclusion

Salem Abu-Hammour champions financial inclusion for SMEs, an area traditionally neglected by the banking sector. Erad’s services are tailored to support first-time credit takers, with over 60% of their clientele falling into this category. Through this commitment, Erad continues to empower entrepreneurs across various sectors, including retail, food and beverage, and healthcare.

7. Innovative Financing Models

Erad leverages both revenue-based and fixed-term financing models. The revenue-based model allows SMEs to repay a percentage of their revenues, providing flexibility based on their operational cash flow. This adaptability ensures that businesses are not overburdened by fixed repayments.

8. Expanding Regional Footprint

The company's growth strategy focuses on deepening its market presence in Saudi Arabia while expanding its operations across the GCC region. Plans include hiring local talent and enhancing Erad’s suite of financial services to ensure comprehensive support for the region's SMEs.

9. Leveraging Alternative Data

Erad’s reliance on alternative data for credit assessments marks a departure from conventional creditworthiness metrics. By evaluating nuanced business performance indicators, like transaction flow and customer engagement, Erad offers more inclusive access to capital for digitally adept enterprises.

10. Fostering Economic Growth

A driving force behind Erad's mission is its impact on economic growth and job creation within the SME sector. By supporting businesses often ignored by traditional banks, Erad plays a critical role in promoting entrepreneurship, innovation, and economic diversification in the Middle East.

Conclusion

Salem Abu-Hammour, with his strategic leadership and innovative vision, has transformed Erad into a pivotal financial platform revolutionizing SME financing in the GCC region. The company’s alignment with economic priorities such as Saudi Vision 2030, combined with its rapid funding processes and commitment to financial inclusion, underscores its significance in the industry. As Erad continues to grow and expand, it remains committed to empowering SMEs and fostering a robust digital economy in the Middle East, raising intriguing questions about the future of fintech in the region.