Nearly 97% of institutional investors in the Middle East view Saudi Arabia as the most promising market for private debt funds in the coming year, according to the latest report published by Preqin. This marks a significant increase from 82% in 2023, reflecting the Kingdom’s growing importance in the private debt market.
Private debt funds are becoming a key asset class in Saudi Arabia, driven by Vision 2030’s push to diversify the economy and attract capital. Since 2016, Saudi Arabia has accounted for 27.5% of all Middle East-focused private debt fund deals.
Of the private debt funds with Saudi exposure closed between 2016 and Q3 2024, mezzanine funds represented 50%, direct lending 30%, and venture debt 20%. These numbers point to the Kingdom’s emergence as a hub for private capital investment, with its evolving market appealing to local, regional and global investors.
“This report highlights the emergence of private debt funds as a key asset class in Saudi Arabia,” said SVC CEO Dr Nabeel Koshak. “It underscores the progress made under Vision 2030 in building a mature private capital ecosystem to support startups, SMEs and economic diversification.”
Preqin lead author David Dawkins added that Saudi Arabia’s success in private debt provides lessons for other developing economies, particularly in improving transparency to attract sustainable capital.
