Key Takeaways
- • Goldman Sachs, HSBC, and Fortress Investment Group, together with Ruya Partners and Amwal Capital Partners, have reportedly proposed a $150 million loan to United Saudi Company, according to people familiar with the matter.
- • The transaction is among the earliest sizable private credit deals with major global financiers since the US-Iran war began in February, and one of the largest since alternative financing grew in Saudi Arabia in mid-2025.
- • For Fortress, which is backed by Abu Dhabi's Mubadala Investment Co., the deal would mark its first private credit move in Saudi Arabia.
- • Saudi banks face renewed liquidity tightness, with the Saibor minus SOFR spread widening in recent months, which is pushing the kingdom toward nonbank lending.
- • Ruya is seeking commitments for a $400 million regional private credit fund that could be among the largest in the Middle East.
Summary
According to people familiar with the matter, Goldman Sachs Group Inc., HSBC Holdings Plc and Fortress Investment Group, together with Ruya Partners and Amwal Capital Partners, have proposed lending $150 million to United Saudi Company. Ruya confirmed it participated in a transaction for United Saudi Company but provided no further details. Goldman Sachs, HSBC and Amwal declined to comment, and Fortress did not respond to a request for comment.
People familiar with the transaction said the deal ranks among the earliest sizable private credit transactions with major global financiers since the US-Iran war began in February. It is also one of the largest since alternative financing began playing a greater role in Saudi Arabia in mid-2025. The transaction comes as security risks remain in focus. The Saudi-led coalition said it destroyed three missiles headed for Riyadh, and an earlier attack damaged the offices of Saudi Aramco in the capital's financial district, which also houses Wall Street firms including Goldman.
Saudi Arabia is relying more heavily on private capital as Crown Prince Mohammed bin Salman pursues a multitrillion-dollar economic overhaul while managing fiscal pressures from the war and near-daily Houthi attacks. Renewed liquidity tightness is intensifying funding pressures at Saudi banks and threatening the pace of spending on critical projects. Data from the Saudi central bank and Bloomberg show the Saibor minus SOFR spread has climbed in recent months amid Iran war pressures. Small and medium enterprises, central to diversification plans but often unable to obtain bank loans, are turning to venture debt, crowdfunding and micro lending. Asset-backed specialized financing has also gained traction, with Jefferies Financial Group Inc., Citigroup Inc. and Apollo Global Management participating in such deals over the past 18 months.
For investors, the pipeline is growing. Janus Henderson reported last month that it had gathered nearly $200 million for a regional private credit fund. Backed by Mubadala and the Saudi Public Investment Fund, Ruya is seeking commitments for a $400 million fund. If the $150 million offer proceeds, it will be an early indicator of how global capital aligns with Saudi private credit amid war-driven stress.
People familiar with the transaction said the deal ranks among the earliest sizable private credit transactions with major global financiers since the US-Iran war began in February. It is also one of the largest since alternative financing began playing a greater role in Saudi Arabia in mid-2025. The transaction comes as security risks remain in focus. The Saudi-led coalition said it destroyed three missiles headed for Riyadh, and an earlier attack damaged the offices of Saudi Aramco in the capital's financial district, which also houses Wall Street firms including Goldman.
Saudi Arabia is relying more heavily on private capital as Crown Prince Mohammed bin Salman pursues a multitrillion-dollar economic overhaul while managing fiscal pressures from the war and near-daily Houthi attacks. Renewed liquidity tightness is intensifying funding pressures at Saudi banks and threatening the pace of spending on critical projects. Data from the Saudi central bank and Bloomberg show the Saibor minus SOFR spread has climbed in recent months amid Iran war pressures. Small and medium enterprises, central to diversification plans but often unable to obtain bank loans, are turning to venture debt, crowdfunding and micro lending. Asset-backed specialized financing has also gained traction, with Jefferies Financial Group Inc., Citigroup Inc. and Apollo Global Management participating in such deals over the past 18 months.
For investors, the pipeline is growing. Janus Henderson reported last month that it had gathered nearly $200 million for a regional private credit fund. Backed by Mubadala and the Saudi Public Investment Fund, Ruya is seeking commitments for a $400 million fund. If the $150 million offer proceeds, it will be an early indicator of how global capital aligns with Saudi private credit amid war-driven stress.
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