Private Credit Providers Have Expanded in the GCC
Investors are stepping in to help address a $250 billion financing shortfall across the region.
Updated on Sept. 21, 2026 in Financial Services
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Private credit institutions are increasingly filling a $250 billion financing gap within the GCC as traditional banks face restrictive lending regulations. These non-bank providers are now offering flexible capital structures to support regional growth across multiple sectors.
Why it matters
Businesses across the region require capital structures more flexible than what traditional banks can offer due to strict prudential regulations. Private credit provides this necessary alternative to ensure liquidity for major regional development projects.
The market is projected to reach between $11 billion and $20 billion by 2030, reflecting significant growth from its 2021 share of 3 per cent of regional real estate debt.
The players
DIFC
The Dubai International Financial Centre is a major global financial hub providing a specialized legal and regulatory framework.
ADGM
The Abu Dhabi Global Market serves as an international financial center operating under a unique common law jurisdiction.
The details
Financial hubs including the DIFC and ADGM have established regulatory frameworks and fund structures that enable institutional capital to bridge the financing divide. This expansion comes as Dubai alone recorded over Dh680 billion in real estate investments across 258,000 transactions in 2025.
Timeline
In 2021, private credit accounted for approximately 3 per cent of total regional real estate debt.
Dubai property recorded over Dh680 billion in investments during 2025.
The private credit market is expected to reach $11 billion to $20 billion by the end of the decade.
Market Landscape
The growth of private credit represents a shift toward non-bank capital as financial institutions adapt to global liquidity constraints. This evolution positions private providers as essential partners to the traditional banking sector in the Middle East.
The rise of private credit means businesses will likely have more options for securing growth capital outside of traditional bank loans. For investors, this creates new avenues for institutional participation in regional real estate and infrastructure projects.
The takeaway
The move toward private credit indicates that regional markets are successfully diversifying their financial ecosystems to attract more institutional capital. This shift provides a blueprint for other emerging economies aiming to bridge structural funding gaps.
Further reading
For more on the changing landscape of capital, visit the Financial Services section.
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Do you trust private credit as a viable alternative to traditional bank lending for businesses?
