Baghdadi to build bridges for clients’ growth with capital provider Tamwuil

In the heart of Spain, which is famous for its flamenco dances and bullfights, Shariah compliant family office group Baghdadi Capital and its wholly-owned Tamwuil Capital are also trying to distinguish themselves by building something unique to their industry: bridges of expansion for those in need of operational funding.

"I am your partner” rather than working capital provider, Baihas Baghdadi, the Syrian-origin founder of the group, likes to tell potential customers that include industrial companies and those in the logistics, food and beverage as well as pharmaceutical sectors.

Baihas shared with IFN Investor that it is the ethos of the enterprise he’s built, to create “something that differentiates you from the rest of the players”.

Managing more than EUR1 billion (US$1.17 billion) in assets, Baihas operates from the Spanish capital Madrid to reach clients across the world including in the UK, the Republic of Ireland and the US.

While Baghdadi is the parent company, the group’s current most talked-about initiative is Tamwuil – with the name itself offering a hint of its purpose as it means “finance” in Arabic. The subsidiary forms a critical part of the group’s global offering, addressing key issues in the financial management of procurement, supply chains and supplier relationships.

Tamwuil’s mission: In and out briskly, clear up inefficiency

Unlike traditional lenders, Tamwuil doesn't just provide loans; it buys goods on behalf of its clients, pays suppliers in cash and then sells those goods back to the clients with a deferred payment structure, or Murabahah.

Financing is structured to be short-term, with both dispensing and recovery of cash set between 90 and 120 days, in order to stay nimble.

"If we are ready, we can do it in 48 hours," Baihas said of the cash disbursement, noting this also depended on how quickly clients provided the required information.

In terms of scale, Tamwuil started with an investment of EUR25 million (US$29.28 million) and targets EUR500 million (US$585.55 million) over the next 12 to 18 months. Its long-term ambition is even grander: US$5 billion in global financing over the next three years.

"I think the opportunity is extraordinarily massive," Baihas said. To that end, the group’s founder sees Tamwuil as an "empowerment tool" rather than a conventional lender.

This philosophy, Baihas argued, fosters a "socially responsible kind of relationship" where the firm and its clients become partners on a shared journey of growth. This trust-based approach is a key differentiator, particularly in markets where Shariah compliance is not the main driver.

Tamwuil’s growth strategy includes planned acquisitions to expand its footprint. The firm is in the process of buying companies in Ireland and the US to gain immediate access to markets in the UK, South Africa and Latin America.

Its organic customer base itself was established through affiliated companies like High Bridge Capital and Trade Working Capital, giving it a significant head start when it came to the procurement needs of new clients.

"Through our subsidiaries and affiliates, I would say that we will have access to an important market share."

Unlike banks, Tamwuil ‘won’t take back the umbrella’ when it rains

Baihas is quick to point out that this partnership extends to adapting to the client's existing workflow, regardless of how inefficient it may be.

“We should adapt to what the client has. We need to adapt to what the client has. If we have the right client, if we are the right partners for that client, we should be able to digest all kinds of inefficiencies that the client could have.” This flexible, client-centric model avoids forcing companies to invest in new technology or change their established processes.

While Tamwuil's unique structure provides an advantage, Baihas acknowledges the operational challenges. Explaining to suppliers why a third party like Tamwuil is stepping in to purchase goods on behalf of their clients requires extensive education.

But the payoff is worth it for Baihas, who recounts a story of a struggling company that was unable to secure a US$300,000 procurement deal. By backing the company, Tamwil enabled it to secure a much larger US$30 million contract.

“I would say bankers ... and I was a banker for 30 years… bankers we are very good, you know, (in) providing umbrellas to everybody, and the moment it starts to rain, (they) ask them back. This is where I think we make a difference.”