Saudi private credit is gaining new momentum as Jefferies Financial Group steps into the Kingdom’s fast-growing lending market. The move signals a deeper push by major US financial firms into a region rapidly transforming into a global investment hub. Jefferies’ latest deal positions the bank among the rising number of Wall Street institutions tapping into Saudi Arabia’s appetite for alternative financing.
Jefferies targets growth in Saudi private credit
Jefferies has completed its first significant entry into Saudi private credit, leading a $125 million financing round for Riyadh-based fintech lender Erad. The investment is made alongside co-investor Channel Capital and is structured as an asset-backed, scalable facility. This means Erad can expand its lending power to small- and medium-sized enterprises (SMEs) without diluting ownership or raising expensive equity.
The financing comes at a time when Saudi Arabia is prioritising SME development as part of its Vision 2030 economic diversification agenda. Demand for non-bank lending has soared, pushing global investors to explore opportunities traditionally dominated by local banks.
Why Saudi private credit is attracting Wall Street
The accelerating interest in Saudi private credit reflects broader shifts in global capital flows. As interest rates, regulatory pressures and market uncertainty weigh heavily on Western economies, Gulf markets — particularly Saudi Arabia — offer scale, liquidity and long-term policy stability.
Private credit has become one of the fastest-growing asset classes in the region. The Kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), has also been driving investment in local fintechs, logistics, manufacturing and technology, making it an attractive destination for global lenders like Jefferies, Blackstone, Apollo, and KKR.
Erad aims to boost SME lending through new capital
Founded to support digital-first SMEs, Erad uses a data-driven underwriting model to offer revenue-based financing. With the new Jefferies-led facility, the firm can increase loan volumes, speed up approvals, and scale its services nationwide.
The injection of capital aligns with Saudi Arabia’s strategy to strengthen entrepreneurship, reduce dependency on traditional bank loans, and modernise the Kingdom’s financial infrastructure.
