Riyadh – Sharikat Mubasher: A subsidiary of Saudi Arabia’s Public Investment Fund is stepping up its exposure to private credit, underscoring growing Gulf confidence in the asset class despite turbulence in overseas markets.

Jada Fund of Funds, which operates under the Public Investment Fund, has signed an investment agreement with India-based Stride Ventures to channel capital into the Saudi economy, as reported by Bloomberg. Under the arrangement, Stride plans to deploy around $200 million in the Kingdom over the next two years, according to Bandar Alhomaly, Jada's Chief Executive.

The move comes as the private credit market in the US faces heightened scrutiny over valuations and lending standards, following recent fund restrictions by Blue Owl Capital that weighed on market sentiment. Despite these concerns, Gulf investors continue to view private credit as a long-term opportunity, particularly as the market remains relatively underdeveloped in the Middle East.

Alhomaly said Saudi Arabia’s private credit space is still nascent and likely to see tighter regulation as it expands, but stressed that the asset class remains a strategic priority for Jada, especially for financing small and medium-sized enterprises as bank lending growth slows.

Launched in 2018 with around $1 billion in capital, Jada has deployed nearly $600 million across about 50 funds. Elsewhere in the region, the Qatar Investment Authority and Abu Dhabi’s Mubadala Investment Company are also increasing their exposure to private credit.