The GCC’s startup financing model is undergoing a significant transformation, with private debt deployment soaring 8.2 times year-on-year to reach $4.1 billion in 2025. A new report by Stride Ventures reveals that Saudi Arabia is at the epicentre of this shift, with the Kingdom’s startups attracting approximately $3.9 billion, or a staggering 95% of the total. This surge has pushed structured credit ahead of venture capital as a primary funding instrument for growth-stage companies in the region.
Quick Facts
- GCC private debt deployment reached $4.1B in 2025.
- Saudi Arabia accounted for nearly $3.9B of the total.
- Fintech startups attracted 95.5% of all debt financing.
A New Funding Hierarchy: Debt Overtakes Equity
The growth of private debt in the GCC has fundamentally altered the funding equation. Of the approximately $7.4 billion in tracked startup investments across the region in 2025, private debt’s $4.1 billion contribution surpassed the $3.3 billion raised through venture capital. This indicates a clear change in how regional founders are financing scale, moving beyond traditional equity-based rounds to leverage non-dilutive capital for expansion, acquisitions, and platform growth.
The UAE followed Saudi Arabia in debt deployment with around $211 million, and Bahrain saw deployments of about $22 million. The trend highlights an increasing institutional appetite for structured credit solutions from the growth stage all the way to pre-IPO.
Fintech’s Unrivaled Dominance in Debt Deals
The fintech sector was the primary beneficiary of this capital influx, accounting for roughly 95.5% of all private debt deployed, equating to nearly $3.9 billion. This concentration is driven by business models that require continuous access to capital for lending books and asset-backed growth.
Several high-profile transactions underscore this trend, including massive debt facilities for Saudi Arabia’s Tamara ($2.4 billion) and Lendo ($740 million), alongside Deem’s $400 million deal. Other key transactions included the UAE’s CredibleX ($100 million), Kitopi ($50 million), and Octa ($20 million). Beyond fintech, sectors like agritech, proptech, SaaS, and logistics also saw increased credit activity.
Sovereign Capital and Early-Stage Credit Integration
The report attributes the rapid institutionalisation of private debt to the strong backing of sovereign wealth funds and enabling regulations. Major regional financial institutions like Saudi Arabia’s Public Investment Fund (PIF), Jada Fund of Funds, and Sanabil Investments, as well as the UAE’s Mubadala and ADQ, have been instrumental in building the region’s growth capital ecosystem.
Unlike mature markets where debt financing typically enters at a later stage, GCC startups are integrating structured credit much earlier in their lifecycles, often at Series A.
“The GCC’s private debt market has moved from early exploration to institutional conviction,” said Fariha Ansari Javed, Partner, GCC & Global Capital Formation at Stride Ventures. “What stands out is not just the scale of deployment and participation of the region’s largest sovereign wealth funds, but the fact that credit is entering the capital stack earlier in the company lifecycle, especially across fintech and asset-backed models.”
About Stride Ventures
Stride Ventures is a global venture debt and growth credit platform with offices across India, the GCC, and Southeast Asia. A sector-agnostic platform, Stride manages 7 funds and has enabled over $1.6B in credit globally, partnering with nearly 200 high-growth companies. In the GCC, Stride has deepened its presence through its ADGM Fund, backing from PIF’s Jada Fund of Funds, and a strategic partnership with SAB Invest.
Source: Zawya
