Abu Dhabi-based private credit firm, Ruya Partners, is launching a campaign to raise $400 million for what is poised to become one of the Middle East’s largest private credit funds. The initiative will focus on deploying capital in Saudi Arabia and other key Gulf economies, addressing a critical gap in non-bank financing for mid-market companies.
The Rise of Private Credit in the Gulf
Private credit refers to direct lending to companies outside of traditional banking channels. This alternative financing model is becoming increasingly vital in emerging markets where businesses often face a “credit squeeze,” struggling to secure funding from conventional banks or public debt markets.
In the Gulf region, accelerated economic diversification efforts have created a unique financing challenge. Many mid-market companies are considered too large for traditional bank loans but too small to tap into global capital markets. Private credit funds like the one proposed by Ruya Partners serve as a strategic tool, offering the flexible and structured capital these companies need to scale.
Strategic Focus on the Saudi Market
According to Ruya Partners, Saudi Arabia is a primary focus for the fund due to the significant financing opportunities emerging from Vision 2030. The Kingdom’s agenda to develop its private sector, support local enterprises, and expand the non-oil economy has created substantial demand for growth capital.
Private credit is particularly well-suited to bridge funding gaps for the small and medium-sized enterprises that are crucial for driving innovation and growth under the Vision 2030 framework.
Backed by Regional Heavyweights
Ruya Partners plans to raise the $400 million from a diverse investor base that includes prominent family offices, pension funds, and other institutional investment funds.
Significantly, the initiative has garnered support from Saudi Arabia’s Public Investment Fund (PIF), signaling strong sovereign interest in cultivating the region’s private credit sector. This backing underscores the strategic importance of developing alternative financing mechanisms to bolster financial stability and diversify funding sources for key projects.
About Ruya Partners
Ruya Partners is an independent, partner-owned private credit firm based in Abu Dhabi. It is dedicated to providing bespoke, flexible, and scalable financing solutions to private sector companies across developing markets. The firm aims to support the growth of mid-market businesses by addressing gaps left by traditional financing channels.
Source: Jawlah
