GCC private debt surges past venture capital as start-ups turn to structured credit
Structured credit is rapidly reshaping start-up financing across the Gulf, with private debt emerging as the dominant source of capital for growth-stage firms, according to new data. The figures, released by Stride Ventures in its ‘Global Private Debt Report 2026: A Venture & Growth Credit Lens’ report, point to a sharp shift in investor preferences, with private debt in the GCC rising to $4.1 billion in 2025 — an 8.2-fold increase from just $0.5 billion a year earlier. This surge has pushed private debt ahead of venture capital for the first time in the region’s start-up ecosystem. Total venture capital deployment stood at $3.3 billion out of $7.4 billion in overall tracked start-up investment, underscoring a structural shift toward non-dilutive financing. The data highlights how founders are increasingly turning to structured credit to scale without giving up equity, particularly as global venture funding conditions remain cautious. The transition also reflects a maturing start-up landscape, where companies are seeking capital solutions more closely aligned with revenue generation rather than early-stage risk. Saudi Arabia has emerged as the clear epicentre of this trend, attracting about $3.9 billion in private debt inflows. The UAE followed with $211 million, while Bahrain accounted for $22 million. The concentration of capital in Saudi Arabia underscores the scale of its fintech and digital economy push, backed by strong institutional funding and policy support. Fintech companies have been the biggest beneficiaries of this shift, accounting for 95.5 per cent of total private debt deployment, or roughly $3.9 billion. Some of the largest deals driving this growth include Tamara’s $2.4 billion raise, Lendo’s $740 million transaction, and financing rounds for Deem and CredibleX totaling $400 million and $100 million respectively. Industry executives say this pattern reflects the natural fit between fintech business models and structured credit, where predictable cash flows enable debt-based expansion. “The GCC’s private debt market has moved from early exploration to institutional conviction. 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. This reflects a market that is increasingly being underwritten with structure, rigour, and long-term intent and our commitment to have $500 AUM across the region by the end of 2028,” said Fariha Ansari Javed, Partner, GCC & Global Capital Formation, Stride Ventures.
Source: Khaleej Times