Global investment firm KKR has completed its first private credit transaction in Saudi Arabia, marking a significant milestone in the development of the kingdom’s non-bank financing market.

The deal reflects increasing international participation in Saudi Arabia’s financial sector as the country accelerates economic diversification under its Vision 2030 programme.

The transaction was executed through KKR’s private credit platform and provides structured financing to a Saudi-based business, although financial terms and the borrower’s identity were not publicly disclosed.

Market participants said the deal highlights growing demand for alternative financing solutions in the kingdom, particularly as companies seek flexible capital structures beyond traditional bank lending.

Saudi Arabia has been actively encouraging the expansion of private credit as part of broader reforms aimed at deepening capital markets, supporting private-sector growth and attracting global investment expertise.

Regulatory changes, improved transparency and strong state backing for economic transformation have helped position the kingdom as an increasingly attractive destination for large international asset managers.

For KKR, the transaction represents an entry point into one of the Middle East’s fastest-growing private credit markets.

Executives have previously signalled interest in expanding credit strategies across the region, citing robust economic fundamentals, large-scale infrastructure and industrial projects, and supportive government policy frameworks.

The deal is seen as a foundation for further private credit activity in Saudi Arabia as demand for diversified financing continues to rise.