Foreign financial houses court the Gulf, from Saudi lending to Dubai offices

Foreign financial firms are opening up in the Gulf this week. Goldman Sachs, HSBC, and Mubadala-backed Fortress are lending USD 150 mn into a Saudi manufacturer alongside two regional managers, Fortress for the first time in the Kingdom. Blackstone has opened a DIFC office and put private credit and infrastructure funds in front of more than 100 family offices. Kotak Mahindra has moved its Dubai representative office into new premises on Sheikh Zayed Road.

International private credit is moving back into Saudi Arabia: Goldman Sachs, HSBC, and Mubadala-backed Fortress Investment Group are providing USD 150 mn of financing to nonwoven fabrics manufacturer United Saudi Company, alongside regional managers Ruya Partners and Amwal Capital, Bloomberg reports, citing people familiar with the matter. It is one of the first major private credit deals involving large international lenders since the war began in February, and Fortress’ first in Saudi private credit.

More regional money is forming up behind it. Janus Henderson has raised almost USD 200 mn for a regional private credit fund, and Ruya, backed by Mubadala and PIF, is raising a USD 400 mn fund that would be among the region’s largest. The financing comes with Houthi attacks continuing, domestic finances under strain, and bank liquidity tight, which puts more weight on foreign capital.

Blackstone is courting Gulf family offices to refill its retail funds, five months after redemptions forced it to gate its flagship private credit fund, BCRED. Wealth executives including BCRED president Carlos Whitaker pitched private credit and infrastructure funds to more than 100 wealthy investors and family offices at the firm’s first Dubai gathering on Wednesday, with more than 40 Gulf distributors signed.

The pitch came as it opened its DIFC office, which Blackstone says will anchor its Gulf private wealth business alongside its Abu Dhabi base. Private wealth accounts for USD 330 bn of its USD 1.4 tn in assets, close to a quarter, and management is aiming at USD 1 tn in private wealth assets, about three times where it sits now.

India’s Kotak Mahindra Bank is widening its Dubai presence to court the UAE’s Indian diaspora. The bank has inaugurated new premises for its Dubai representative office on Sheikh Zayed Road, targeting investment and family wealth management for Indian families and businesses with interests across the UAE, India, and beyond, according to a press release. Kotak has had a Dubai representative presence since 2009, and its central bank licence does not allow the office to offer banking products or services onshore in the UAE.

NMDC Group is looking at three to five acquisition targets and hopes to announce the first in December, Group CEO Yasser Zaghloul tells Bloomberg. The Abu Dhabi marine and energy services firm, a key contractor to Adnoc, sees the slowdown in activity as a good moment to buy, and Zaghloul expects growth back at 20% or higher once the conflict ends and projects and trade resume.

The slide started before the war. Hormuz disruption took NMDC’s 9M revenue growth down to 4%, from 10% last year and nearly 60% in 2024, so most of the deceleration landed in 2025, ahead of February. The company has been buying abroad already, taking 51% of Spanish water utility Lantania Aguas and winning new awards across the UAE, Taiwan, Oman, and the Philippines.

Boursa Kuwait has listed its first fixed-income instrument, opening a bonds and sukuk platform. Kuwait Finance House’s KWD 200 mn (c. USD 650 mn) additional tier 1 sukuk now trades under the symbol KFH T1S3, the first debt of any kind to list on the exchange, Kuwait Times reports. The CMA cleared amendments to the listing requirements and the fixed-income rulebook in April and approved the launch on 5 November, putting Kuwait on the same footing as Nasdaq Dubai, the Saudi Exchange, and the Muscat exchange.

The paper is not new. KFH issued the perpetual Mudaraba instrument in May at 200 bps over the Central Bank of Kuwait discount rate, for an expected 5.50% annual profit rate paid semi-annually and callable after six years, according to KFH. It was fully subscribed domestically, mainly by private banking and wealth management clients and financial institutions, with demand exceeding the target by more than KWD 275 mn, though KFH has not given the target size. It is rated A2 by Moody’s and A by Fitch, both stable, and trades in KWD 1k units, Kuwait Times reported.

ADVISORS- KFH Capital was global coordinator and joint lead manager, with Kamco Invest as joint lead manager.

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