Saudi Firm Jadwa Turns to Private Credit for Fresh Deal Momentum

Jadwa Investment Co. is raising $200 million for its flagship private credit fund. The firm, based in Saudi Arabia, has already secured $80 million from investors, including sovereign wealth and pension funds according to Bloomberg. The fund is targeting Gulf region investments, with plans to close two more deals in the first half of 2026.

The firm has already deployed capital into its first two investments. These include Saudi fintech companies Lendo and JeelPay. Jadwa is not targeting specific sectors but is seeing strong opportunities in acquisition financing. This aligns with broader regional trends where alternative financing is becoming more critical.

Regulatory changes and increased demand are driving private credit growth in the Gulf. Jadwa has previously done specific private credit deals, but this new fund allows for more systematic exposure. Managing director Fidaa Haddad said the firm tested the asset class and now investors are seeking more.

Why the Move Happened

Jadwa is expanding its private credit exposure as Gulf companies face liquidity constraints. Banking systems are under pressure from large government projects, creating a need for alternative financing solutions. The firm is leveraging its existing $30 billion in client assets across private equity, real estate, and fixed income.

Digitalization and regulatory reforms have also made it easier to pursue private credit in the region. These include changes around non-bank lending, which have improved the operating environment.

How the Gulf Market is Evolving

The Gulf is seeing increased participation from global private credit firms. KKR & Co., Jefferies Financial Group, and Ares Management are also expanding in the region. Jadwa is collaborating with local investors to meet this growing demand.

Saudi Arabia, in particular, is becoming a key market for private credit deals. Banks are focused on financing government-led projects, leaving corporate and acquisition financing underserved. This has created a vacuum that private credit can fill.

The United Arab Emirates is a similar case. Banks are heavily engaged in financing state initiatives, making it harder for companies to secure capital. Jadwa has noted that UAE firms are seeking financing for cross-border deals into Saudi Arabia.

What Analysts Are Watching

Jadwa is not the only firm exploring private credit in the Gulf. The Trump Organization, through its partnership with Dar Global, is also investing in the region. They have announced $10 billion in luxury developments in Saudi Arabia, including Trump-branded properties in Riyadh and Jeddah.

Analysts are watching whether these investments will attract more global capital. Jadwa has already attracted interest from international funds seeking local partners. This trend could signal a broader shift in how Gulf deals are funded.

Investors are also closely monitoring regulatory developments. Saudi Arabia’s Vision 2030 initiative is driving changes in foreign investment rules. These include allowing non-Saudis to own property in certain areas, which is expected to take effect this month.

Jadwa and other firms are adapting to these changes. As the Gulf’s financial markets evolve, private credit could play a key role in supporting economic diversification. This trend is likely to continue as more investors seek alternative financing solutions.