Private debt has overtaken venture capital as the largest source of startup financing in the Gulf Cooperation Council (GCC), with structured credit deployment rising to $4.1bn in 2025, according to a report by Arab News citing data from Stride Ventures.
Stride found that private debt, including venture debt and growth credit, increased more than eightfold from around $500m in 2024. Saudi Arabia accounted for approximately $3.9bn of total deployment, significantly ahead of the UAE with $211m and Bahrain with $22m.
Structured credit represented more than half of the GCC startup ecosystem’s $7.4bn of tracked funding during the year, exceeding venture capital investment of $3.3bn. According to Stride Ventures, the figures highlight the growing role of non-dilutive financing as a primary source of growth capital for startups and scale-ups across the region.
The report attributes the growth to sovereign-backed investment programmes, regulatory reforms and the rapid expansion of fintech. Institutions including Saudi Arabia’s Public Investment Fund, Jada Fund of Funds and Sanabil Investments, alongside the UAE’s Mubadala and ADQ, have helped support the development of the region’s private credit ecosystem.
Fintech accounted for around 96 per cent of all private debt deployment in the GCC during 2025, equivalent to approximately $3.9bn. Among the largest financings were Tamara’s $2.4bn facility, Lendo’s $740m transaction and Deem’s $400m financing, alongside deals for CredibleX, Kitopi, Erad and Octa.
