UAE, Saudi Investors Back $191M Shariah-Compliant Private Credit Fund

(MENAFN- Khaleej Times) Private credit is gaining traction across the Gulf as companies look beyond conventional bank loans to fund expansion, acquisitions and refinancing, prompting growing interest from institutional investors and family offices in the asset class.

Against that backdrop, Janus Henderson said its Shariah-compliant MENA Private Credit Fund IV has secured $191 million in investor commitments at its second close, reaching nearly two-thirds of its $300 million fundraising target. The commitments came from institutional investors and family offices in the UAE and Saudi Arabia.

Recommended For You

The asset manager said demand for private credit is being driven by the Gulf's expanding economies, rising investment activity and an increasingly sophisticated corporate sector, creating a need for tailored financing solutions, particularly among mid-sized businesses.

Unlike traditional lenders, private credit funds provide direct financing to companies, often offering more flexible structures and faster access to capital. The trend has accelerated globally over the past decade and is increasingly being adopted in the Middle East as businesses seek alternatives to bank lending and capital markets.

Janus Henderson's latest fund focuses on providing primarily Shariah-compliant financing to profitable mid-market companies in the UAE, Saudi Arabia and selected markets across the wider Middle East and North Africa region. The strategy targets directly originated transactions and supports activities including business growth, acquisitions, refinancing and shareholder transitions.

"The Middle East is a strategically important region for Janus Henderson and an area where we continue to see significant opportunities to support clients with innovative investment solutions," said Ali Dibadj, chief executive of Janus Henderson.

"The continued growth of our MENA private credit platform, including the successful second close of Fund IV, reflects our commitment to meeting the evolving needs of investors across the Gulf."

Industry participants say private credit is increasingly filling gaps left by traditional lenders, particularly in sectors and deals that require customised financing structures.

"The strong second close reflects the growing recognition among regional investors of the role private credit can play in diversified portfolios, while also highlighting the expanding opportunity to provide flexible capital to MENA businesses," said Sikander Ahmed, head of MENA Private Credit and senior executive officer of Janus Henderson Investors Middle East.

Fund IV is expected to make between 10 and 12 investments ranging from $15 million to $50 million over its lifetime.

The fund is managed by a team that has been active in regional private credit since 2008 and became part of Janus Henderson following the integration of the platform in 2024. The firm said the strategy was designed to meet growing demand from Shariah-compliant institutional investors in the region and internationally.

Across its track record, including investments made before joining Janus Henderson, the team has completed 40 investments and 36 exits across 10 countries, while launching eight funds, four of which have been fully exited.

The latest fundraising milestone highlights increasing confidence in alternative financing across the Gulf, where private credit is emerging as a growing source of capital for businesses seeking flexibility amid a rapidly evolving economic landscape.

MENAFN07102026000049011007ID1111773026