Private capital financing in the Gulf region has surged, reaching $54.8 billion between 2020 and 2024, a significant increase from the $10.4 billion raised in the previous five years.

S&P Global’s latest findings suggest that this upward trend is expected to continue, driven by companies seeking alternatives to traditional bank funding.  As more businesses underserved by banks turn to private financing, the region is set for further growth in private capital over the coming years.

The rise in interest from private capital providers is another key factor contributing to this trend. Historically, companies in the Gulf region have relied on banks, bonds, and sukuk to meet their financing needs.

The S&P report said: “Our analysis of private financing transactions shows that private financiers have expanded their reach over time to provide funding to more mature and established companies, not just those at early development stages. Established companies received 79 percent of private financings in December 2024, up from 31 percent in 2015.”

The number of transactions that were financed with private capital peaked at $20.4 billion in 2023, compared with $1.3 billion in 2015, the document noted.

Source: ARABNEWS