Riyadh – Sharikat Mubasher: The Saudi Venture Capital Company (SVC), a state-backed investment firm, is restructuring its $3 billion investment strategy to direct a larger share of capital toward private credit funds, reflecting growing interest in alternative financing within the Kingdom.
Nabeel Koshak, SVC CEO, told Bloomberg that SVC, which primarily operates as a fund of funds, plans to allocate half of its portfolio to private credit and private equity, up from roughly one-third last year, while the remainder will continue to target venture capital investments.
Koshak noted that private credit remains in its early stages in Saudi Arabia but plays a crucial role in bridging financing gaps for small and medium enterprises (SMEs). The move comes as tighter liquidity makes traditional bank lending more difficult for local businesses.
Founded in 2018 with a $3 billion mandate through 2030, SVC has been investing around $300 million annually over the past two years and plans to maintain that pace through 2026. The shift aligns with broader efforts to diversify Saudi Arabia’s economy and strengthen its position as a global hub for entrepreneurship and finance.
