The Rise of Private Debt Funds in Saudi Arabia 2024: Preqin Territory Guide (Saudi Venture Capital Company (SVC))

Summary

• Nine private debt funds investing in Saudi Arabia have reached final close since 2016, raising $1.18bn.p.3
• The total amount raised at final close by private debt funds reached a record high of $335mn in 2022.p.3
• Eight private debt funds in market with Saudi Arabia exposure are targeting more than $1.77bn.p.3
• Saudi Arabia captured 27.5% of Middle East-focused private debt deals between 2016 and Q3 2024.p.4
• 58% of surveyed Middle East investors plan to commit more capital to private debt over the next 12 months.p.7
• Saudi Arabia's $1.1tn economy aims to triple annual investments between 2021 and 2030 to reach over $3.2tn.p.10

Key insights

1. Saudi Arabia's private debt growth is supported by Vision 2030 regulatory advancements and capital market reforms.p.2
2. Global private debt fundraising in H1 2024 reached 74% of the level raised in the first half of 2023.p.5
3. Saudi Arabia was selected by 97% of Middle East institutional investors as offering the best market opportunities in 2024.p.6
4. Private debt ranks as the third best opportunity asset class in the Middle East with 43% investor support.p.7
5. The Public Investment Fund acts as a critical anchor investor to build regional credibility and attract global private debt capital.p.8
6. Tamara raised $400mn in venture debt from Goldman Sachs in two rounds in 2023.p.9
7. Tabby secured a $700mn asset-backed venture debt facility from J.P. Morgan in December 2023.p.9
8. Foreign direct investment is targeted to contribute 15% or $0.5trn toward Saudi Arabia's cumulative $3.2trn investment requirement by 2030.p.12