Report Overview

Middle East and Africa Private Credit Market – Industry Trends & Forecast Report, 2031

Middle East and Africa Private Credit Market size was estimated at USD 45.03 billion in 2024. During the forecast period between 2025 and 2031, Middle East and Africa Private Credit Market size is projected to grow at a CAGR of 13.37%reaching a value of USD 108.36 billion by 2031. Prominent drivers of Middle East and Africa Private Credit Market include rising investor demand, increasing diversification needs, and supportive regulatory reforms. Over the past five years, private credit has seen a surging adoption globally, with assets under management surpassing USD 2 trillion, and major institutions like BlackRock and Blackstone forecasting an addressable market of up to USD 30 trillion. In the Middle East, local investors are increasingly turning to private credit to diversify wealth traditionally generated from hydrocarbons, supported by collaborations between sovereign wealth funds—including PIF, ADIA, ADQ, and Mubadala—and leading global credit houses. Private credit, which encompasses non-bank lending provided by private equity firms, alternative asset managers, and dedicated credit funds, primarily serves highly leveraged SMEs underserved by banks or too small for public bond markets, offering instruments such as floating rate direct lending, real estate loans, collateralized loan obligations, venture debt, and infrastructure debt. In the GCC, direct lending and venture debt dominate, providing flexible financing often with equity-linked incentives. Government initiatives such as UAE free zones, streamlined visa processes, and the 2023 Private Credit Fund Rules, along with updated bankruptcy laws and DIFC/ADGM regulatory alignment, have strengthened the legal framework for private debt, facilitating growth. With traditional banks allocating minimal funding to SMEs, private credit offers a vital alternative for companies seeking flexible, confidential financing while retaining equity. Global and regional players, including Mubadala, Apollo, Ares, Blackstone, Chimera, Rasmalah, Shorooq Partners, Jada Fund, and QIA, are rapidly expanding their participation, reflecting strong investor confidence. As a result, private credit is emerging as a key tool for revenue diversification and SME financing, with growing demand for transparency, specialized advisory services, and professional fund management expected to drive sustained market expansion, mirroring the growth trajectory of private equity in the region over the past two decades.

Private Credit – Overview

Private credit refers to non-bank lending provided by private institutions, including private equity firms, credit funds, and alternative asset managers, outside traditional banking channels and public debt markets. It primarily targets borrowers who are underserved by banks, such as highly leveraged small and medium-sized enterprises (SMEs), early-stage companies, or firms too small for public bonds. The asset class encompasses diverse instruments, including direct lending, venture debt, real estate loans, infrastructure debt, collateralized loan obligations, and asset-backed securities. Private credit offers flexible, confidential financing with tailored terms, often providing higher risk-adjusted returns for investors compared to traditional debt, while bridging funding gaps in underserved markets.

Middle East and Africa Private Credit Market

Growth Drivers

Rapidly Growing Investor Appetite for Alternative Assets

Middle East and Africa (MEA) Private Credit Market is gaining strong momentum, driven by a rapidly growing investor appetite for alternative assets. Traditionally dominated by well-capitalized regional banks, the lending landscape is evolving as institutional investors, sovereign wealth funds, and family offices increasingly allocate capital to private credit strategies. Prominent players such as ADIA and Mubadala have collectively invested over USD 10 billion in global private credit funds and formed strategic partnerships with major firms like KKR, reflecting institutional interest. This surge in investor confidence is further supported by regulatory and legal reforms across key MEA economies, particularly in Saudi Arabia and the UAE, where revised bankruptcy and restructuring frameworks have enhanced creditor protections and aligned local markets with international standards. Financial free zones such as ADGM and DIFC have also bolstered the region’s appeal by offering English common law frameworks and robust arbitration capabilities. As MEA economies diversify beyond oil and gas into sectors such as real estate, infrastructure, technology, and healthcare, the demand for flexible, non-bank financing is increasing, and private credit firms are stepping in to meet this need with bespoke capital structures that traditional banks are often unable to provide. The growing participation of institutional investors and family offices is deepening market liquidity, strengthening the private credit ecosystem, and positioning the MEA region as an emerging hub for alternative asset investments.

Challenges

Regulatory Challenges

Regulatory challenges are hindering the growth of Middle East and Africa (MEA) Private Credit Market. Despite rising interest from investors, the region still faces fragmented legal frameworks, inconsistent enforcement mechanisms, and underdeveloped insolvency and restructuring laws across several countries. These gaps create uncertainty around creditor rights, contract enforcement, and recovery processes in cases of default. Additionally, regulatory frameworks in many MEA markets lack the depth and clarity seen in developed economies, making risk assessment and deal structuring more complex for private credit firms. Such regulatory hurdles deter international investors, limiting market liquidity and slowing the sector’s overall expansion.

Impact of Escalating Geopolitical Tensions on Middle East and Africa Private Credit Market

Escalating geopolitical tensions could significantly impact the expansion of Middle East and Africa Private Credit Market by increasing economic uncertainty and investor risk aversion. Heightened regional conflicts or political instability can disrupt trade flows, weaken local currencies, and trigger capital outflows, reducing liquidity for private credit transactions. Such tensions may also lead to stricter regulatory measures, higher borrowing costs, and delays in cross-border deal execution. Moreover, geopolitical instability can affect borrower creditworthiness, especially in sectors reliant on foreign investment. These factors collectively create a volatile investment environment, discouraging international private credit firms and slowing the overall growth and maturation of Middle East and Africa Private Credit Market.

Middle East and Africa Private Credit Market

Segmental Coverage

Middle East and Africa Private Credit Market – By Instrument Type

Based on instrument type, Middle East and Africa Private Credit Market is divided into Direct Lending, Mezzanine Financing, Distressed/Special Situations, Structured Credit, and Unitranche Loans segments. The direct lending segment holds the highest share in Middle East and Africa Private Credit Market by instrument type. The dominance is largely attributed to its simplified structure, quicker deal execution, and greater flexibility compared to traditional bank financing. Direct lending enables private credit funds to provide customized financing solutions directly to mid-sized and growth-oriented businesses, effectively bridging the funding gap created by cautious lending practices of conventional banks. Moreover, its ability to deliver attractive risk-adjusted returns, steady cash flows, and stronger lender-borrower relationships has increased its appeal among institutional investors, positioning it as the preferred instrument type in the region’s private credit landscape.

Middle East and Africa Private Credit Market – By Borrower Type

Middle East and Africa Private Credit Market by borrower type is divided into Small & Medium-sized Enterprises (SMEs), Large Corporates, Real Estate Developers, Infrastructure & Project Financing, and Startups & New-Economy Businesses segments.

Middle East and Africa Private Credit Market – By End User

On the basis of end user, Middle East and Africa Private Credit Market is segmented into Real Estate, Infrastructure (Energy, Transport, and Utilities), Manufacturing & Industrials, Healthcare & Pharmaceuticals, Technology & Startups, and Consumer & Retail.

Middle East and Africa Private Credit Market – By Country

The in-depth research report on the Middle East and Africa Private Credit Market covers the market in the region’s major countries including Saudi Arabia, UAE, Qatar, Kuwait, South Africa, Nigeria, Algeria, and Rest of MEA. Saudi Arabia holds the highest share in Middle East and Africa Private Credit Market and is expected to maintain its dominance during the forecast period. The Kingdom has emerged as the region’s most dynamic hub for private credit, driven by Vision 2030 reforms, capital market liberalization, and a surge in institutional investor interest. Nearly 97% of regional investors plan to increase exposure to Saudi private credit, underscoring its robust appeal. Large-scale mega-projects like NEOM and Qiddiya, combined with growing SME financing needs, are fueling demand for flexible, non-bank capital. Supported by regulatory modernization, foreign investor inflows, and increasing participation from global players such as Goldman Sachs, Saudi Arabia’s private credit ecosystem is rapidly expanding. This strong pipeline of opportunities, coupled with government-backed economic diversification, positions the country to retain its market leadership during the forecast period.

Competitive Landscape

Major players operating in Middle East and Africa Private Credit Market include AfricInvest, BluePeak Private Capital, TLG Capital, Ninety-One, Gulf Capital, Ruya Partners, Shorooq Partners, Tenami Capital, Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company, Goldman Sachs Asset Management, Oaktree Capital, Blue Owl Capital, Riyad Capital, and Investec. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Instrument Type

• Direct Lending

• Mezzanine Financing

• Distressed/Special Situations

• Structured Credit

• Unitranche Loans

By Borrower Type

• Small & Medium-sized Enterprises (SMEs)

• Large Corporates

• Real Estate Developers

• Infrastructure & Project Financing

• Startups & New-Economy Businesses

By End Use

• Real Estate

• Infrastructure (Energy, Transport, Utilities)

• Manufacturing & Industrials

• Healthcare & Pharmaceuticals

• Technology & Startups

• Consumer & Retail

By Country

• Saudi Arabia

• UAE

• Qatar

• Kuwait

• South Africa

• Nigeria

• Algeria

• Rest of MEA

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3.  Middle East and Africa Private Credit Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Demand from SMEs
         2. Rapidly Growing Investor Appetite For Alternative Assets
      2. Restraints
         1. Regulatory Challenges
         2. Limited Market Maturity
      3. Opportunities
         1. Digital Lending Platforms
         2. Expanding SME Financing
      4. Challenges
         1. Economic Volatility
         2. Competition from Traditional Banks
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Middle East and Africa Private Credit Market: Marketing Strategies
5. Middle East and Africa Private Credit Market: Pricing Analysis
6. Middle East and Africa Private Credit Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Instrument Type
         1. Direct Lending
         2. Mezzanine Financing
         3. Distressed/Special Situations
         4. Structured Credit
         5. Unitranche Loans
      2. By Borrower Type
         1. Small & Medium-sized Enterprises (SMEs)
         2. Large Corporates
         3. Real Estate Developers
         4. Infrastructure & Project Financing
         5. Startups & New-Economy Businesses
      3. By End User
         1. Real Estate
         2. Infrastructure (Energy, Transport, Utilities)
         3. Manufacturing & Industrials
         4. Healthcare & Pharmaceuticals
         5. Technology & Startups
         6. Consumer & Retail
      4. By Country
         1. Saudi Arabia
         2. UAE
         3. Qatar
         4. Kuwait
         5. South Africa
         6. Nigeria
         7. Algeria
         8. Rest of MEA
7. Saudi Arabia Private Credit Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Instrument Type
      2. By Borrower Type
      3. By End User
8. UAE Private Credit Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Instrument Type
      2. By Borrower Type
      3. By End User
9. Qatar Private Credit Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Instrument Type
      2. By Borrower Type
      3. By End User
10. Kuwait Private Credit Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Instrument Type
       2. By Borrower Type
       3. By End User
11. South Africa Private Credit Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Instrument Type
       2. By Borrower Type
       3. By End User
12. Nigeria Private Credit Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Instrument Type
       2. By Borrower Type
       3. By End User
13. Algeria Private Credit Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Instrument Type
       2. By Borrower Type
       3. By End User
14. Rest of MEA Private Credit Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Instrument Type
       2. By Borrower Type
       3. By End User
15. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Middle East and Africa Private Credit Market Share Analysis, 2024
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
16. Impact of Escalating Geopolitical Tensions on Middle East and Africa Private Credit Market
17. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. AfricInvest
    2. BluePeak Private Capital
    3. TLG Capital
    4. Ninety One
    5. Gulf Capital
    6. Ruya Partners
    7. Shorooq Partners
    8. Tenami Capital
    9. Abu Dhabi Investment Authority (ADIA)
    10. Mubadala Investment Company
    11. Goldman Sachs Asset Management
    12. Oaktree Capital
    13. Blue Owl Capital
    14. Riyad Capital
    15. Investec
    16. Other Prominent Players
18. Key Strategic Recommendations
19. Research Methodology
    1.  Qualitative Research
       1.  Primary & Secondary Research
    2.  Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Middle East and Africa Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 2       Middle East and Africa Private Credit Market Share, By Instrument Type, By Value (USD Million), 2019–2031

Figure 3       Middle East and Africa Private Credit Market Share, By Borrower Type, By Value (USD Million), 2019–2031

Figure 4       Middle East and Africa Private Credit Market Share, By End User, By Value (USD Million), 2019–2031

Figure 5       Middle East and Africa Private Credit Market Share, By Country, By Value (USD Million), 2019–2031

Figure 6       Saudi Arabia Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 7       Saudi Arabia Private Credit Market Share, By Instrument Type, By Value (USD Million), 2019–2031

Figure 8       Saudi Arabia Private Credit Market Share, By Borrower Type, By Value (USD Million), 2019–2031

Figure 9       Saudi Arabia Private Credit Market Share, By End User, By Value (USD Million), 2019–2031

Figure 10     UAE Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 11     UAE Private Credit Market Share, By Instrument Type, By Value (USD Million), 2019–2031

Figure 12     UAE Private Credit Market Share, By Borrower Type, By Value (USD Million), 2019–2031

Figure 13     UAE Private Credit Market Share, By End User, By Value (USD Million), 2019–2031

Figure 14     Qatar Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 15     Qatar Private Credit Market Share, By Instrument Type, By Value (USD Million), 2019–2031

Figure 16     Qatar Private Credit Market Share, By Borrower Type, By Value (USD Million), 2019–2031

Figure 17     Qatar Private Credit Market Share, By End User, By Value (USD Million), 2019–2031

Figure 18     Kuwait Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 19     Kuwait Private Credit Market Share, By Instrument Type, By Value (USD Million), 2019–2031

Figure 20     Kuwait Private Credit Market Share, By Borrower Type, By Value (USD Million), 2019–2031

Figure 21     Kuwait Private Credit Market Share, By End User, By Value (USD Million), 2019–2031

Figure 22     South Africa Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 23     South Africa Private Credit Market Share, By Instrument Type, By Value (USD Million), 2019–2031

Figure 24     South Africa Private Credit Market Share, By Borrower Type, By Value (USD Million), 2019–2031

Figure 25     South Africa Private Credit Market Share, By End User, By Value (USD Million), 2019–2031

Figure 26     Nigeria Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 27     Nigeria Private Credit Market Share, By Instrument Type, By Value (USD Million), 2019–2031

Figure 28     Nigeria Private Credit Market Share, By Borrower Type, By Value (USD Million), 2019–2031

Figure 29     Nigeria Private Credit Market Share, By End User, By Value (USD Million), 2019–2031

Figure 30     Algeria Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 31     Algeria Private Credit Market Share, By Instrument Type, By Value (USD Million), 2019–2031

Figure 32     Algeria Private Credit Market Share, By Borrower Type, By Value (USD Million), 2019–2031

Figure 33     Algeria Private Credit Market Share, By End User, By Value (USD Million), 2019–2031

Figure 34     Rest of Middle East and Africa Private Credit Market Size, By Value (USD Million), 2019–2031

Figure 35     Rest of Middle East and Africa Private Credit Market Share, By Instrument Type, By Value (USD Million), 2019–2031

Figure 36     Rest of Middle East and Africa Private Credit Market Share, By Borrower Type, By Value (USD Million), 2019–2031

Figure 37     Rest of Middle East and Africa Private Credit Market Share, By End User, By Value (USD Million), 2019–2031

List of Tables

Table 1 Middle East and Africa Private Credit Market Size, By Value (USD Million), 2019–2031

Table 2 Middle East and Africa Private Credit Market Size, By Instrument Type, By Value (USD Million), 2019–2031

Table 3 Middle East and Africa Private Credit Market Size, By Borrower Type, By Value (USD Million), 2019–2031

Table 4 Middle East and Africa Private Credit Market Size, By End User, By Value (USD Million), 2019–2031

Table 5 Middle East and Africa Private Credit Market Size, By Country, By Value (USD Million), 2019–2031

Table 6 Saudi Arabia Private Credit Market Size, By Value (USD Million), 2019–2031

Table 7 Saudi Arabia Private Credit Market Size, By Instrument Type, By Value (USD Million), 2019–2031

Table 8 Saudi Arabia Private Credit Market Size, By Borrower Type, By Value (USD Million), 2019–2031

Table 9 Saudi Arabia Private Credit Market Size, By End User, By Value (USD Million), 2019–2031

Table 10      UAE Private Credit Market Size, By Value (USD Million), 2019–2031

Table 11      UAE Private Credit Market Size, By Instrument Type, By Value (USD Million), 2019–2031

Table 12      UAE Private Credit Market Size, By Borrower Type, By Value (USD Million), 2019–2031

Table 13      UAE Private Credit Market Size, By End User, By Value (USD Million), 2019–2031

Table 14      Qatar Private Credit Market Size, By Value (USD Million), 2019–2031

Table 15      Qatar Private Credit Market Size, By Instrument Type, By Value (USD Million), 2019–2031

Table 16      Qatar Private Credit Market Size, By Borrower Type, By Value (USD Million), 2019–2031

Table 17      Qatar Private Credit Market Size, By End User, By Value (USD Million), 2019–2031

Table 18      Kuwait Private Credit Market Size, By Value (USD Million), 2019–2031

Table 19      Kuwait Private Credit Market Size, By Instrument Type, By Value (USD Million), 2019–2031

Table 20      Kuwait Private Credit Market Size, By Borrower Type, By Value (USD Million), 2019–2031

Table 21      Kuwait Private Credit Market Size, By End User, By Value (USD Million), 2019–2031

Table 22      South Africa Private Credit Market Size, By Value (USD Million), 2019–2031

Table 23      South Africa Private Credit Market Size, By Instrument Type, By Value (USD Million), 2019–2031

Table 24      South Africa Private Credit Market Size, By Borrower Type, By Value (USD Million), 2019–2031

Table 25      South Africa Private Credit Market Size, By End User, By Value (USD Million), 2019–2031

Table 26      Nigeria Private Credit Market Size, By Value (USD Million), 2019–2031

Table 27      Nigeria Private Credit Market Size, By Instrument Type, By Value (USD Million), 2019–2031

Table 28      Nigeria Private Credit Market Size, By Borrower Type, By Value (USD Million), 2019–2031

Table 29      Nigeria Private Credit Market Size, By End User, By Value (USD Million), 2019–2031

Table 30      Algeria Private Credit Market Size, By Value (USD Million), 2019–2031

Table 31      Algeria Private Credit Market Size, By Instrument Type, By Value (USD Million), 2019–2031

Table 32      Algeria Private Credit Market Size, By Borrower Type, By Value (USD Million), 2019–2031

Table 33      Algeria Private Credit Market Size, By End User, By Value (USD Million), 2019–2031

Table 34      Rest of Middle East and Africa Private Credit Market Size, By Value (USD Million), 2019–2031

Table 35      Rest of Middle East and Africa Private Credit Market Size, By Instrument Type, By Value (USD Million), 2019–2031

Table 36      Rest of Middle East and Africa Private Credit Market Size, By Borrower Type, By Value (USD Million), 2019–2031

Table 37      Rest of Middle East and Africa Private Credit Market Size, By End User, By Value (USD Million), 2019–2031

Table 38      AfricInvest Company Overview

Table 39      AfricInvest Financial Overview

Table 40      BluePeak Private Capital Company Overview

Table 41      BluePeak Private Capital Financial Overview

Table 42      TLG Capital Company Overview

Table 43      TLG Capital Financial Overview

Table 44      Ninety One Company Overview

Table 45      Ninety One Financial Overview

Table 46      Gulf Capital Company Overview

Table 47      Gulf Capital Financial Overview

Table 48      Ruya Partners Company Overview

Table 49      Ruya Partners Financial Overview

Table 50      Shorooq Partners Company Overview

Table 51      Shorooq Partners Financial Overview

Table 52      Tenami Capital Company Overview

Table 53      Tenami Capital Financial Overview

Table 54      Abu Dhabi Investment Authority (ADIA) Company Overview

Table 55      Abu Dhabi Investment Authority (ADIA) Financial Overview

Table 56      Mubadala Investment Company: Company Overview

Table 57      Mubadala Investment Company Financial Overview

Table 58      Goldman Sachs Asset Management Company Overview

Table 59      Goldman Sachs Asset Management Financial Overview

Table 60      Oaktree Capital Company Overview

Table 61      Oaktree Capital Financial Overview

Table 62      Blue Owl Capital Company Overview

Table 63      Blue Owl Capital Financial Overview

Table 64      Riyad Capital Company Overview

Table 65      Riyad Capital Financial Overview

Table 66      Investec Company Overview

Table 67      Investec Financial Overview