Saudi Arabia’s Jada partners with India’s Stride Ventures to deploy $200M in private credit, expanding non-bank financing and boosting SME growth under Vision 2030.
Jada Fund of Funds, a subsidiary of the Kingdom’s Public Investment Fund (PIF), has partnered with India-based Stride Ventures to deploy $200 million into companies operating in Saudi Arabia over the next two years.
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The capital will focus on venture debt and structured private credit, expanding access to non-bank financing across the Kingdom. The move reflects a broader Gulf shift toward alternative lending as traditional bank financing tightens and private markets deepen.
In the United States, private credit managers are facing rising scrutiny. Investors have questioned underwriting standards and valuation transparency after years of rapid growth. Concerns escalated when Blue Owl Capital Inc. restricted withdrawals from one of its funds, unsettling listed firms with exposure to the sector.
Private credit in the Middle East remains comparatively small and underpenetrated. Regional executives argue that the market is still in its formative stage — defined more by opportunity than excess risk.
Launched in 2018 with approximately $1 billion from PIF, Jada was mandated to cultivate Saudi Arabia’s private capital ecosystem. It invests across venture capital, private equity, and increasingly private credit strategies. To date, Jada has deployed close to $600 million across roughly 50 funds.
The partnership with Stride Ventures represents a strategic effort to import expertise while accelerating domestic capital formation. Venture debt products are particularly relevant for growth-stage companies that need expansion capital but may not qualify for conventional bank loans.
With Saudi Arabia prioritizing SME growth under Vision 2030, diversified funding channels are becoming critical to sustaining private-sector momentum.
The Qatar Investment Authority has backed a private credit firm launched by former Goldman Sachs partners, while Abu Dhabi’s Mubadala Investment Company continues expanding its exposure to alternative credit globally.
Private credit is increasingly viewed by sovereign investors as a structural allocation — offering yield, diversification, and influence over capital deployment — rather than a cyclical trade.
Why Jada Matters to MENA
- Signals capital confidence: Sovereign-backed institutions are not retreating from private credit; they are scaling it regionally.
- Boosts SME financing: Alternative lending helps bridge funding gaps for startups and mid-sized firms.
- Strengthens financial infrastructure: Building domestic private credit capacity reduces reliance on foreign banks.
- Positions the Gulf strategically: While Western markets debate overheating risks, MENA is still in expansion mode.
For MENA’s capital markets, this is less about chasing yield — and more about building long-term financial depth.
