GCC Startups Increasingly Rely on Private Debt for Growth
Startups in the Gulf Cooperation Council (GCC) region are increasingly turning to private debt as a strategic tool for scaling their businesses. This shift marks a departure from the traditional reliance on equity financing. The GCC's venture ecosystem is maturing, with founders now utilizing a mix of equity, venture debt, and strategic partnerships to preserve ownership and enhance capital efficiency. Government-linked funds and development institutions in Saudi Arabia and the UAE have established regulatory frameworks that support the viability of private credit at scale. In 2025, private debt deployment in the GCC reached $4.1 billion, surpassing venture capital deployment. 
