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Saudi Arabia’s $1 trillion sovereign wealth fund, the Public Investment Fund (PIF), has signed an agreement to anchor a new private credit fund targeting Saudi Arabia and the wider MENA region, as global firms step up efforts to tap opportunities linked to the kingdom’s $2 trillion economic transformation programme.
The flexible, multi‑strategy fund, managed by King Street Capital Management, will provide private capital solutions to corporates and engage in asset‑based lending.
First announced at the FII PRIORITY Miami Summit last month, the partnership aims to provide a dedicated credit platform to meet rising demand from local and regional businesses for capital.
PIF's anchor capital, the size of which was not disclosed, is expected to catalyse additional long‑term foreign capital inflows, unlocking financing for high‑impact sectors across the region.
According to King Street, an alternative investment firm managing more than $30 billion in assets across public and private markets, the regional private credit market will need to expand by around 15–30% annually over the next five years to support economic development in Saudi Arabia and the broader MENA region.
In 2024, King Street, signed a memorandum of understanding with Saudi Real Estate Refinance Co., a unit of PIF, to enhance liquidity and diversify financing options in the kingdom’s real estate sector.
(Writing by Brinda Darasha; editing by Daniel Luiz)
