Abu Dhabi's Ruya Partners Seeks $400 Million for Major Gulf Private Credit Fund

ABU DHABI/RIYADH — Ruya Partners, an Abu Dhabi-based investment firm, is in the process of raising $400 million for a new private credit fund, aiming to capitalize on a financing squeeze among mid-sized businesses in Saudi Arabia and the broader Gulf region.

The fund has already secured backing from units of Middle Eastern sovereign wealth titans Mubadala Investment Company and Saudi Arabia's Public Investment Fund (PIF). According to Ruya partner Omar AlYawer, the firm is now courting a wider pool of institutional investors, including family offices, pension funds, and endowments, with a first close expected in the coming months.

"We see a structural gap in the market," AlYawer told Bloomberg in an interview in Riyadh. "Traditional banks have slowed credit growth precisely when Vision 2030 projects are creating unprecedented demand for capital. For loans between $10 million and $50 million, many quality businesses are left underserved."

Initially, the fund will focus on providing direct lending to middle-market companies. However, Ruya has outlined an ambitious three-year plan to diversify into real estate and infrastructure credit strategies, reflecting the region's expansive development needs.

The move signals a significant step in the maturation of the Gulf's private credit sector. As banks retrench and global giants like Goldman Sachs and KKR establish local partnerships, homegrown firms like Ruya are positioning themselves as crucial intermediaries. The sector is gaining traction as an alternative financing source vital for fulfilling Saudi Arabia's economic diversification agenda.

"Private credit is no longer a niche asset class here; it's becoming a fundamental piece of the region's financial architecture," AlYawer added. "We believe we're still in the early stages, especially in Saudi Arabia, and this fund is our vehicle to build a leading platform."

The fund is expected to deploy most of its capital in Saudi Arabia and the United Arab Emirates, with the former anticipated to see the majority of investment activity.

Market Voices

Layla Al-Fardan, Portfolio Manager at a Bahrain-based family office: "This is a logical and timely move. The alignment with PIF and Mubadala provides instant credibility. The mid-market gap is real, and Ruya's local expertise could give them an edge over international firms still navigating the regional landscape."

Marcus Thorne, Senior Analyst at a London-based emerging markets research firm: "The fundraise highlights the accelerating institutionalization of Gulf private credit. However, concentration risk is a concern. Success will hinge on Ruya's ability to source high-quality deals in a market that is becoming increasingly competitive and on their execution in newer strategies like infrastructure."

Dr. Faisal Al-Khaldi, Economics Professor at King Saud University: "Yet another fund chasing the 'Vision 2030' narrative. While the financing gap is real, I'm deeply skeptical about the governance and risk management frameworks of these new, fast-growing credit players. Are we building a sustainable financial ecosystem or sowing the seeds for the next cycle of non-performing loans? The euphoria feels reminiscent of pre-2008."

Aisha Chen, Managing Director of a Singaporean sovereign wealth fund: "Our interest in the Gulf is strategic and long-term. Moves like Ruya's validate the region's depth and the shift towards sophisticated, non-bank financing. We are actively monitoring such platforms for potential co-investment opportunities that offer direct exposure to the region's core growth stories."