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By: William Watson, White & Case
Companies in the Middle East have traditionally been well served by regional banks, but over the past two years, borrower interest in private credit has grown.
Various factors have raised private credit's profile in the Middle East, including efforts to diversify the regional economy, and the willingness of family offices and sovereign wealth funds to broaden their investment allocations to a wider range of asset classes. In turn, international private credit firms have been increasing their presence in the region to meet this demand. According to PwC forecasts, private credit could expand at a compound annual growth rate of between 15%-30% in the Gulf Cooperation Council (GCC) member states and Egypt over the next five to six years.
Recent deals have underscored private credit's increasing popularity in the Middle East. For example, Property Finder, an online real estate platform that operates throughout the GCC, Egypt and Turkey, secured a US$90 million debt package in 2024 from Francisco Partners, its first investment into the United Arab Emirates.
New financing needs
Deals like the one struck by Property Finder reflect how Middle Eastern economies are diversifying beyond their cornerstone oil & gas industries into other sectors such as real estate, technology and tourism. This has created opportunities for private credit players, for both regional firms with experience operating within the region and for internat...................... To view our full article Click here
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