Jadwa Investment Seeks $1.2 Billion in Private Credit to Fuel Real Estate Expansion

Jadwa Investment has initiated negotiations for a $1.2 billion private credit facility to fund new residential and commercial developments across Riyadh and the Eastern Province. The financing, structured through a mix of institutional lenders and sovereign-backed vehicles, reflects a strategic pivot toward non-bank funding amid tighter traditional bank lending conditions. The deal aligns with Saudi Arabia’s Vision 2030 goals, which prioritize infrastructure and private sector growth. Jadwa’s real estate portfolio includes over 1.8 million square meters of developed space, with 14 ongoing projects valued at approximately SR 32 billion ($8.5 billion). The private credit tranche will specifically target mid-sized commercial complexes and mixed-use residential towers in high-growth zones like King Abdullah Financial District and Riyadh’s Diplomatic Quarter. Market analysts note that private credit issuance in Saudi Arabia surged by 42% year-on-year in 2025, outpacing traditional bank lending. Jadwa’s move signals a broader trend: private capital is increasingly filling gaps left by public-sector funding constraints and regulatory shifts. The firm has already secured conditional commitments from three regional financial institutions, with final terms expected by Q2 2026. The development is expected to impact the local construction sector, potentially creating over 12,000 jobs during the construction phase. It also strengthens the position of private equity and asset management firms as key players in Saudi Arabia’s capital allocation ecosystem. Investors in the Kingdom’s real estate market are likely to see heightened activity in mid-tier commercial assets, which are now deemed more accessible through alternative financing routes.