Abu Dhabi-Based Ruya Partners Targets US$400 Million Fundraise For Middle East Private Credit Fund
The fund aims to provide middle-market lending and alternative financing to businesses in Saudi Arabia and the UAE.
Ruya Partners, an Abu Dhabi-based boutique private credit firm, is seeking to raise capital for what could become one of the region’s largest private credit funds, as it aims to bridge financing gaps caused by a tightening credit environment in Saudi Arabia.
Supported by major regional investors, including Abu Dhabi’s sovereign wealth fund, Mubadala Investment Co., and Saudi Arabia’s Public Investment Fund (PIF), the Kingdom’s US$1 trillion sovereign wealth fund, Ruya is reaching out to family offices, pension funds, and endowments to raise $400 million, Omar AlYawer, a partner at the firm, told Bloomberg.
With the firm anticipating to close its first round in the coming months, the fund is set to initially concentrate on middle-market lending, though the firm intends to diversify into real estate and infrastructure credit over the next three years. It will focus primarily on Saudi Arabia and the UAE, with the bulk of activity expected in the Kingdom.
Other firms are also entering this space, including London-headquartered Janus Henderson and Riyadh-headquartered Jadwa Investment Co., both of which are raising private credit vehicles. Last year, Goldman Sachs Asset Management collaborated with the Kingdom’s $1 trillion sovereign wealth fund to launch a set of Gulf-focused funds, including private credit strategies.
Despite this growing activity, AlYawer highlighted that a significant gap still exists for Saudi businesses seeking loans between $10 million and $50 million, an amount often too limited for international players and generally overlooked by local banks.
"We’re only in the second inning in regional private credit, especially in Saudi Arabia, where there are financing needs across the spectrum," Al Yawer said. "Almost everyone is coming out with a version of what private credit is for them and trying to strike it in a different way."
Pictured in the lead image is Omar AlYawer, a Partner at Ruya Partners. Courtesy of Ruya Partners.
