Episode 29-Exploring the GCC Private Credit Boom

Majlis & Markets

According to the IMF, private credit assets grew to $2.1 trillion globally in 2023. With banks less willing to lend to riskier firms in the US and Europe, private credit has stepped in as a key lender.

In the GCC, private credit activity has surged, with financial institutions setting up new funds and financing transactions. Examples include Mubadala and Goldman Sachs setting up a $1bn private credit fund in February 2024.

In our 29th episode, we spoke to Ahmad Alanani, co-founder and CEO of Sancta Capital.
With over 20 years of experience in debt restructuring and structured lending, Ahmad shares his insights into the growth of private credit in the region and its future.
In this episode, we covered several topics including

• The development of private credit in the Gulf
• Exploring different financing structures
• Looking at the risks in the coming years

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Intro theme song-Arab and Muslim by StockMusic via Pixabay

Chapters

1. Episode 29-Exploring the GCC Private Credit Boom (00:00:00)

2. Monologue intro (00:00:50)

3. Beginning of discussion (00:01:38)

4. Ahmad's background (00:02:20)

5. What does Sancta Capital do? (00:08:03)

6. What is private credit? (00:11:14)

7. Who lends and borrows in private credit? (00:16:20)

8. Different financing structures (00:21:20)

9. Why is GCC private credit booming? (00:24:00)

10. Crowding out private sector financing (00:28:03)

11. Serving high yield Islamic instruments (00:30:32)

12. GCC as a private capital hub (00:32:58)

13. Risks facing Gulf private credit (00:38:30)

14. Activity besides KSA and UAE (00:46:45)

15. Ahmad's upcoming projects (00:49:37)

16. Contacting Ahmad (00:51:04)