SKN | Goldman Sachs, HSBC and Fortress Join $150 Million Saudi Private Credit Financing for United Saudi Company

Key Takeaways:

• Goldman Sachs, HSBC and Fortress Investment Group are joining regional fund managers in a $150 million financing arrangement for United Saudi Company.
• The transaction represents Fortress’s first move into Saudi Arabian private credit and ranks among the earliest major international financing deals since the U.S.-Iran war began in February.
• Growing demand for alternative financing reflects funding pressures among Saudi businesses, particularly small and medium-sized enterprises, as liquidity conditions tighten.

Global Lenders Enter Saudi Private Credit Transaction

Goldman Sachs, HSBC Holdings and Fortress Investment Group are partnering with regional fund managers on a $150 million financing deal for United Saudi Company, marking a significant development in Saudi Arabia’s expanding private credit market.

The transaction includes regional investment firms Ruya Partners and Amwal Capital Partners. It also represents Fortress’s first entry into Saudi Arabian private credit. Fortress is backed by Abu Dhabi’s Mubadala Investment Company.

Ruya acknowledged its participation in a transaction involving United Saudi Company but did not provide further details. Goldman Sachs, HSBC and Amwal declined to comment, while Fortress did not respond to a request for comment.

The financing ranks among the earliest transactions involving major international lenders since the U.S.-Iran war began in February. It is also among the largest deals completed since alternative financing gained greater prominence in Saudi Arabia in mid-2025.

Private Credit Gains Importance Amid Funding Pressures

Saudi Arabia is increasingly relying on private investors to help finance Crown Prince Mohammed bin Salman’s economic transformation agenda. However, the regional conflict has added pressure to government finances, while renewed liquidity constraints are affecting funding conditions at domestic banks.

These pressures could lead to spending reductions on major projects and increase the importance of alternative sources of capital.

Small and medium-sized enterprises face particularly significant financing challenges. Many businesses in this segment continue to encounter difficulties securing conventional bank loans, encouraging interest in micro-lending, crowdfunding, venture debt and private credit.

For international lenders and investment managers, the market presents an opportunity to participate in financing businesses that may have limited access to traditional banking channels. However, market entry remains challenging, with regulatory requirements, investor education and access to local opportunities identified as important obstacles.

Regional Investment Activity Expands

Local financial firms continue to dominate Saudi Arabia’s private credit market, although international institutions have increasingly participated in specialised financing transactions.

Jefferies Financial Group, Citigroup and Apollo Global Management have invested in specialised financing deals over the past 18 months, generally involving asset-backed lending.

New investment vehicles focused on the Middle East are also attracting capital. Janus Henderson recently reported that its regional private credit fund had secured close to $200 million. Ruya Partners, which counts Mubadala and Saudi Arabia’s Public Investment Fund among its backers, is seeking to raise $400 million for a new fund.

The participation of Goldman Sachs, HSBC and Fortress in the United Saudi Company financing adds another international dimension to this developing market. It also illustrates how global financial institutions and regional asset managers are working together to access opportunities in Saudi Arabia’s alternative financing sector.

Closing Insights

Saudi Arabia’s private credit market is developing against a backdrop of economic transformation, tighter liquidity conditions and persistent financing needs among smaller businesses. The $150 million United Saudi Company transaction highlights the potential for international capital to complement domestic lending capacity, while bringing additional institutional participants into the market.

The longer-term opportunity will depend on regulatory development, the availability of suitable investment structures and the ability of lenders to assess borrower risk in a changing economic environment. Further fundraising and cross-border partnerships may indicate whether private credit can establish a more substantial role in Saudi Arabia’s financial system.

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