Private capital financing is gaining traction as a key funding source for companies in the GCC region, according to S&P Global Ratings. While currently concentrated in large transactions, private capital is increasingly flowing to established companies, not just early-stage ventures.
S&P Global Ratings’ analysis shows that established companies received 79 per cent of private financings in December 2024, compared to just 31pc in 2015.
“On the demand side, private capital financing can be an alternative funding source for companies that are underserved by banks,” said S&P Global Ratings credit analyst Mohamed Damak. “On the supply side, regional private capital providers for GCC corporates, including sovereign wealth funds, will continue to diversify their geographic exposure to avoid over-relying on a single economy or region.”
Private companies in the GCC are the primary recipients of this financing, with investments heavily skewed towards the largest deals. Over the past decade, the top 10 transactions have represented approximately 80pc of the total annual volume of private capital financings, S&P Global Ratings noted.
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