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Charting the Future of Private Credit in Saudi Arabia: Insights from Jada's Executive Roundtable (Jada Fund of Funds)

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ReportJada Fund of FundsOctober 20258 pages12 min readOriginal source
Key number
2.5 trillion $
US private credit market size p.3
Key number
1.5 trillion $
Saudi Arabia economy size p.3
Key number
5 billion SAR
Saudi private credit funds growth p.5

Summary

  • On September 29, 2025, Jada Fund of Funds hosted an Executive Roundtable on Private Credit in Saudi Arabia to evaluate global trends and onshore market development.p.2
  • The US private credit market has reached an estimated $2.5 trillion, though some investors express concern over deployment pressures and distorted underwriting.p.3
  • Over the last five years, private credit funds in Saudi Arabia grew from SAR 0.5 billion to SAR 5 billion.p.5
  • In Saudi Arabia, the bank loan-to-deposit ratio has climbed from around 90% to over 110% since 2020 as loan growth outpaced deposit growth.p.6
  • Small and medium-sized enterprises (SMEs) account for 11% of total bank lending in Saudi Arabia, compared to 20–30% in the US and EU.p.6

Key insights

  1. Global private credit models like BDCs create perpetual deployment demand that disconnects market risk signals from pricing.p.3
  2. Institutional demand is migrating toward shorter-duration, asset-backed strategies backed by equipment, data centers, and consumer receivables.p.3
  3. Local LPs and borrowers in Saudi Arabia require further education on private credit mechanics and non-dilutive benefits to increase allocations.p.4
  4. Domestic anchor capital plays a vital role in attracting foreign asset managers and building long-term partnerships.p.4
  5. Banks in the Kingdom previously mispriced risk by underpricing high-quality borrowers and overpricing weaker credits, opening space for private credit funds.p.5
  6. Regulators in Saudi Arabia are actively promoting SAR-denominated securitization transactions to retain liquidity onshore.p.5
  7. The establishment of a secure Private-Credit Data Repository could track loan-level and fund-level data to improve market resilience during downturns.p.5
  8. Key regulatory enablers since 2018 include the Bankruptcy Law, Private Investment Funds Regulation, digital promissory notes, and bank account pledges.p.6
  9. Inflows from insurance and reinsurance capital with multi-billion-dollar capacity could transform private credit market scale and pricing in the MENA region.p.7

Published by Jada Fund of Funds (funder profile)

Topics and entities

GlobalBankingPrivate debt and venture debtPrivate equityPrivate marketsRegulationSME finance and lendingVenture capitalCapital Market AuthorityJada Fund of FundsMonshaatSaudi Central Bank

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