Alternative financing platform Erad secured a USD 125 mn credit facility from US-based investment bank Jefferies, with co-investment from Channel Capital, it said in a statement emailed to EnterpriseAM. The funding for Saudi SMEs will be deployed through direct funds managed by Erad Partners Capital, the statement read.

What they said: “SMEs represent the backbone of the GCC’s economic diversification efforts, contributing approximately 50% of regional GDP and employing two-thirds of the workforce. Despite their critical role in driving Vision 2030 objectives and other economic transformation across the Gulf states, SMEs face a significant USD 250 bn financing gap that limits their growth potential,” co-founder and CEO Salem Abu-Hammour said.

Jefferies is dipping its toes into private credit: The asset-backed transaction is a first for Jefferies in the GCC region. The investment bank plans to expand its presence in the Kingdom, joining more Wall Street banks eyeing private credit in Saudi as bank liquidity tightens under Vision 2030 spending.

  • The squeeze — driven by large-scale government spending on infrastructure, tourism, and housing — has reportedly constrained banks’ lending capacity, leading to a rare decline in medium-term loans.

ICYMI- An unmistakable trend: Erad already secured USD 33 mn in a debt investment round led by Stride Ventures a couple of months ago. Competitors are also seizing the opening: BNPL firm Tamara landed a shariah-compliant asset-backed facility worth up to USD 2.4 bn from Goldman Sachs, Citi, and Apollo funds in September, while debt crowdfunding startup Lendo secured USD 690 mn from JP Morgan in February.

The story was also picked up by Bloomberg.

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