Abu Dhabi is no longer just a source of capital for U.S. and European private credit managers. The emirate is building a financial hub and private credit ecosystem where deals are originated, structured, and managed locally.
PwC expects the private credit market in the Gulf Cooperation Council and Egypt to grow 15 to 30 percent annually over the next five to six years, rising from about $5 billion in 2024 to between $11 billion and $20 billion by 2030.
Across the Gulf, sovereign investors are increasing private credit allocations, particularly in infrastructure, the transition to clean energy, logistics, and technology. Private credit development aligns with Abu Dhabi Economic Vision 2030, the emirate’s diversification plan, and the national “We the UAE 2031” agenda.
Abu Dhabi’s private credit strategy has three priorities: building partnerships between sovereign wealth funds and global asset managers; strengthening local markets through the legal and regulatory framework of investment authority ADGM; and attracting international managers and hedge funds to establish a local presence in Abu Dhabi.
Strategic partnerships
The Emirate’s sovereign wealth funds, including Mubadala and ADIA, are among the biggest global investors in private credit, partnering with firms like Apollo, Blue Owl, and KKR.
“Over the past few years, we have seen a clear upward trend in private credit across the GCC, particularly in the UAE,” says Benedetta Balducci, managing director, Private Markets EMEA at State Street Investment Management.
“Private credit has become an important component of large regional LP portfolios, both through fund commitments and co-investments. Mubadala and ADIA, for example, have been at the forefront of sizeable co-investment deals in private credit and real estate lending alongside major global managers.”
In early 2025, Mubadala disclosed its private credit portfolio reached $20 billion. Much of this is deployed globally, including in North America and Europe.
Abu Dhabi’s push now is to close the gap between global deployment and limited local origination and to build an onshore market.
ADGM’s growing role
ADGM is central to Abu Dhabi’s push to become a private credit hub.
Set up as a gateway to regional markets and operating under English common law, ADGM combines a favorable regulatory framework with tax advantages and quality infrastructure — key factors drawing international talent and firms.
In 2023, ADGM’s Financial Services Regulatory Authority introduced a Private Credit Fund regime allowing ADGM-domiciled funds to originate and invest in credit facilities. The rules outline diversification, leverage, borrower eligibility, and governance standards while offering targeted regulatory relief.
Under this regime, private-credit funds benefit from exemptions from certain licensing and capital requirements associated with providing or arranging credit, while maintaining governance, risk management, and investor-protection standards, says a spokesperson.
Asal Saghari, partner at Eversheds Sutherland, adds that alongside this framework, the UAE’s insolvency and secured lending regimes have been strengthened.
“The combination of all these factors has paved the way for private credit entrants whereas before the landscape was dominated by bank lenders,” she says.
The changes are attracting global managers. Monroe Capital, a Chicago-based alternative investment firm with $25 billion in assets, opened an ADGM-registered office in October 2025.
“Our immediate focus is to build awareness among institutional investors, family offices, and high-net-worth individuals,” says Zia Uddin, president of Monroe. “Over time, we will expand our regional capabilities and begin originating deals from Abu Dhabi.”
Despite regulatory progress and new entrants, many firms still focus on capital raising rather than deal origination.
“Many global groups are establishing HQs in Abu Dhabi to engage more closely with sovereign wealth investors, and some firms are now originating and structuring deals locally while others remain representative hubs,” says Jonathan Kelly, business development manager at Sovereign Group.
There are promising deals coming out of homegrown managers. Ruya Partners, an ADGM-registered private credit manager, originates direct-lending transactions with UAE and Gulf mid-market companies. In July 2025, it arranged $15 million in private credit financing for TruKKer, a regional digital freight and logistics firm — the sixth investment from its flagship fund.
Shorooq Partners, another ADGM firm, provides venture debt and structured capital to early-stage companies, including those in Hub71, ADGM’s start-up platform.
“Not only are we seeing foreign private credit come into the region which is very exciting from a reversal of capital flows perspective, but we are also seeing the true rise of locally grown private credit lending to local borrowers,” says Saghari.
Industry participants agree Abu Dhabi’s private credit ambitions are still in the early stages, but development is accelerating. Kelly notes the progress but cites challenges, such as navigating licensing categories, governance requirements, and multi-jurisdictional ownership structures. Documentation and bank onboarding also add complexity.
“The regional private credit ecosystem is still developing, so some investors require additional education and comfort around the newer lending structures,” he says, adding that standardized guidance on lending and enforcement, for example, would help streamline structuring.
“For now, Abu Dhabi is moving beyond its long-standing role as a global capital provider,” says Balducci. “Local governments and sovereign wealth funds have historically acted as powerful catalysts for ecosystem development, as demonstrated by the success of the UAE early-stage investing market. There’s no reason why a similar trajectory couldn’t be replicated in private credit.”
