Jada Fund of Funds, a subsidiary of Public Investment Fund, plans to expand its allocation to private credit, according to a report by Bloomberg.

The move comes as Gulf investors continue backing the asset class despite heightened scrutiny in Western markets.

Jada recently struck a partnership with India-based Stride Ventures, which aims to deploy $200m into Saudi Arabia over the next two years. The mandate focuses on supporting small- and medium-sized enterprises as local banks slow lending growth.

“Private credit remains significantly untapped in the Saudi market compared to the rest of the world so we really want to increase our allocation,” CEO Bandr Alhomaly said in an interview. He added: “It’s a priority asset class for us.”

Launched in 2018 with approximately $1bn in capital from PIF, Jada has deployed nearly $600m across around 50 funds. Its mandate centres on developing the kingdom’s private capital ecosystem while advancing Saudi Arabia’s economic diversification agenda.

The strategy contrasts with recent turbulence in the US private credit market, where valuation and asset quality concerns have intensified. However, Gulf investors argue the regional market remains nascent and structurally different.

Jada-backed Ruya Partners is currently raising $400m for a Middle East-focused private credit strategy, while sovereign peers including Qatar Investment Authority and Mubadala Investment Company have also expanded exposure to the asset class.

As Saudi Arabia accelerates economic reform, Jada’s increased allocation signals growing institutional confidence in private credit as a financing channel for domestic growth companies.

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