SAB Invest officially launches first MENA-focused private credit fund

Saudi Awwal Bank’s investment arm, Sab Invest, launched its first MENA-focused private credit fund— the SAB Invest Multi-Strategy Private Investment Fund I, according to a press release picked up by Argaam.

Over SAR 300 mn has already been secured since receiving approval from the Capital Market Authority (CMA) last month, Ali Almansour, CEO of SAB Invest, said. Some 60% of the fund’s capital is earmarked for domestic investments.

We knew this was coming: The Shariah-compliant fund aims to raise SAR 1 bn in total commitments over the next 6 to 12 months, the company’s Chief Investment Officer Osama Alowedi told Bloomberg earlier this week.

The details: The fund requires a minimum investment of SAR 100k, with SAR 1k increments for additional contributions. It aims to deliver annual returns of 12–13%, with 10–11% of that distributed quarterly. Classified as medium-to-high risk, the fund features quarterly subscription windows and distributions, a one-year lock-up, and quarterly redemptions thereafter.

Investor base: Early subscribers include institutional investors, family offices, asset managers, and high-net-worth individuals.

Deployment strategy: Capital will go toward listed and unlisted sukuk from SMEs, structured debt for mid-sized firms, high-growth tech company debt, and infrastructure debt, backed by a set of guarantees and assets including real estate, share pledges, and banknote reserves.