Jadwa Investment, a prominent Saudi investor, is raising up to $200m for its inaugural blind-pool private credit fund. This initiative capitalizes on the burgeoning M&A momentum in Saudi Arabia and the broader Gulf region, where demand for alternative financing is surging. The fund, which has already secured $80m, aims to attract additional capital from sovereign wealth funds and pension plans by the end of 2026.

The fund's strategy includes investments across the Gulf, with initial placements in Saudi fintech companies Lendo and JeelPay. Jadwa expects to finalize two more transactions in the first half of 2026, focusing on acquisition financing as UAE companies seek funding for deals in Saudi Arabia. Regulatory reforms supporting digitization and non-bank lending have facilitated these private credit transactions, making them more feasible.

Jadwa's move aligns with a broader trend of global and regional managers, including KKR, Ares, and Jefferies, expanding into Gulf private credit. As local banking systems face liquidity constraints and deal activity accelerates, private equity and credit firms are increasingly drawn to the Middle East. This shift is part of a strategic response to growing opportunities and regulatory changes that favor private credit in the region.