Saudi Arabia leads the GCC private debt market in 2025, with startup credit financing hitting $4.1 billion. A Stride Ventures survey found private debt overtook venture capital as the preferred funding source for startups in the region.
There was an eightfold increase from about $500 million in 2024. Specifically, the amount raised through private debt in Saudi Arabia was recorded at $3.9 billion, while the UAE and Bahrain contributed $211 million and $22 million, respectively. Founders are increasingly choosing debt over equity.
Private debt represented more than half of the GCC's $7.4 billion startup funding ecosystem in 2025. In comparison, Venture capital funding totaled $3.3 billion in 2025. Stride Ventures pointed out that debt financing was no longer a niche funding option.
It shows that there is a growing faith among institutions in structured credit facilities. Unlike equity financing, venture debt enables startups to finance their ventures without giving up equity. Venture debt is very effective for businesses with high growth potential and revenue-dependent models.
Tamara, a Saudi fintech company, secured the largest debt facility of the year at $2.4 billion. Lendo raised $740 million, whereas Deem raised $400 million. The other venture debts include CredibleX ($100 million), Kitopi ($50 million), Erad ($33 million), and Octa ($20 million).
The report also highlights that Gulf Cooperation Council (GCC) startups are increasingly using both debt and equity financing, from Series A through pre-IPO rounds. In more mature markets, debt typically comes after several equity rounds. Gulf startups are mixing both earlier.
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