Riyadh, Saudi Arabia – A new report has named Saudi Arabia the most promising market for private debt funds in the Middle East, with 97% of institutional investors expressing confidence in the Kingdom’s growth prospects for 2025. This marks a significant increase from 82% in 2023.
The findings were published in “Territory Guide: The Rise of Private Debt Funds in Saudi Arabia,” a report jointly released by Preqin, a global leader in alternative asset data, and Saudi Venture Capital Company (SVC). It is the first in the Kingdom to focus exclusively on private debt funds.
Rising Appeal of Private Debt in Saudi Arabia:
The report highlights that private debt is rapidly gaining traction as an attractive asset class in Saudi Arabia. This growth is linked to ongoing Vision 2030 reforms and increased investor interest—both local and international.
Between 2016 and Q3 2024, Saudi Arabia accounted for 27.5% of all Middle East-focused private debt deals. These transactions reflect strong investor appetite and confidence in the Kingdom’s maturing private capital market.
Breakdown of Fund Types:
Of all private debt funds with Saudi exposure closed during the same period:
-
50% were mezzanine funds
-
30% focused on direct lending
-
20% involved venture debt
This mix underscores growing demand for structured financing solutions in the Kingdom.
Leadership Perspectives:
Dr. Nabeel Koshak, CEO and Board Member at SVC, stated:
“This first-of-its-kind report highlights the emergence of private debt funds as a key asset class in Saudi Arabia, driven by Vision 2030 and the aim to diversify the economy. We remain committed to supporting such data-driven insights that empower policymakers, investors, and founders.”
David Dawkins, lead author at Preqin, added:
“Global investment firms are watching Saudi Arabia’s private debt industry closely. Its success will encourage other developing markets to improve transparency and attract sustainable growth capital.”
SVC’s Role in Saudi Arabia’s Investment Landscape:
Founded in 2018, SVC is a subsidiary of the SME Bank under the National Development Fund (NDF). Its mission is to support startup and SME financing through fund investments and direct capital injections, covering stages from pre-seed to pre-IPO.
As the Kingdom continues to expand its private capital ecosystem, the report positions Saudi Arabia as a regional leader in attracting global debt investment.
For full coverage, visit: https://tnmn.tv
