King Street and PIF to Launch Private Credit Fund in Saudi Arabia and MENA
King Street Capital Management and Saudi Arabia’s Public Investment Fund (PIF) have signed a non-binding memorandum of understanding to establish a new private credit fund focused on Saudi Arabia and the wider Middle East and North Africa (MENA) region. Under the proposed arrangement, PIF will serve as the fund’s anchor investor.
The fund is designed to provide private capital solutions to corporates and support asset-based lending across Saudi Arabia and MENA. It will also have the flexibility to pursue credit opportunities in public markets and selected special situations, broadening its potential scope beyond traditional lending activity.
The planned vehicle reflects growing interest in private credit as a financing channel for businesses in the region, particularly as corporates seek additional funding sources alongside the banking sector. PIF said the partnership is aligned with its strategy of attracting global capital and expertise through collaboration with international asset managers.
Brian Higgins, Founder and Managing Partner of King Street, said the regional private credit market will need to expand by at least 15% to 30% annually over the next five years in order to support economic development in Saudi Arabia and the broader MENA region. He added that the market would complement the GCC’s established banking sector and expanding capital markets.
King Street has been increasing its presence in Saudi Arabia and the wider region. The firm is also in the process of opening an office in Riyadh, underscoring its commitment to building a longer-term local footprint.
Private Credit Momentum in the Region
The proposed fund comes at a time when Saudi Arabia continues to position itself as a major regional hub for financial services and investment. By bringing together a global alternative asset manager and one of the region’s largest sovereign wealth funds, the initiative could help channel additional capital into corporate financing and specialized lending opportunities.
Although the memorandum of understanding is non-binding, it signals a clear intent from both parties to explore a platform that could widen access to credit in Saudi Arabia and MENA. The structure also suggests a focus on diversified financing solutions, including lending backed by assets and opportunities in public markets.
Industry Analysis
The planned fund highlights the growing relevance of private credit in markets where economic diversification and corporate expansion are increasing demand for flexible financing. For Saudi Arabia, such partnerships may help deepen the financial ecosystem by complementing bank lending and supporting more tailored capital solutions for businesses.
It also reinforces PIF’s role in drawing international investors and asset managers into the Kingdom. If developed further, the fund could contribute to the maturation of Saudi Arabia’s investment landscape and support broader capital market development across MENA.
