SBAI Forum Puts Private Credit and Retailisation at Centre of GCC Alternatives Agenda

Q: What are the key risks of the private credit boom in the Middle East?

The main risks include illiquidity - private credit is not easily sold before maturity - and the complexity of valuing non-publicly traded instruments. The SBAI's Portfolio Management and Valuation framework specifically addresses these concerns by promoting consistent valuation and governance standards. Borrowers face higher transparency and covenant obligations, while investors must carefully assess credit quality in a market that is still maturing.

SBAI Forum Puts Private Credit and Retailisation at Centre of GCC Alternatives Agenda

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The "retailisation" of alternatives in the GCC. Insights on private credit and asset-based lending from Abu Dhabi.

The Standards Board for Alternative Investments (SBAI) hosted its 2026 Middle East Forum in Abu Dhabi, placing private credit and asset-based lending at the centre of the GCC alternatives agenda.
"Retailisation" - opening institutional alternative strategies to affluent and semi-professional investors - was identified as a defining structural shift reshaping fund vehicles and market dynamics across the region.
Global private credit assets under management have more than doubled to over US$2 trillion since 2019, with the GCC market alone projected to reach US$5 billion in 2026.
Sovereign wealth funds including Mubadala, ADIA, and PIF have committed billions to private credit partnerships with Apollo, Ares, Blackstone, and Goldman Sachs.
GCC bank SME lending sits below 2% of loan portfolios, creating a structural funding gap that private credit and asset-based finance are moving to fill.
Dedicated Private Credit Fund Rules introduced in 2023, alongside ADGM and DIFC legal reforms, are strengthening the regulatory foundation for non-bank lending in the region.

Abu Dhabi Global Market Reforms and Sovereign Wealth Fund Backing Drive Private Credit Expansion

The SBAI 2026 Middle East Forum in Abu Dhabi placed private credit, asset-based lending, and the retailisation of alternatives at the top of the regional investment agenda. The event drew together institutional allocators, asset managers, and policymakers examining how non-bank capital is reshaping corporate and SME finance across the Gulf Cooperation Council (GCC). Discussions were anchored in SBAI's Portfolio Management and Valuation (PMV) framework - a governance standard designed to promote transparency and consistent valuation in alternative fund management.

The Forum's timing reflects significant momentum. Sovereign wealth funds including the Public Investment Fund (PIF) of Saudi Arabia, Abu Dhabi Investment Authority (ADIA), and Mubadala have committed billions of dollars to private credit strategies alongside global managers. Meanwhile, dedicated Private Credit Fund Rules introduced in 2023 and the alignment of Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) frameworks with common law standards have built a more robust legal and regulatory infrastructure for non-bank lending across the region.

Private Credit and Secondaries Take Centre Stage at SBAI Abu Dhabi Forum

The Standards Board for Alternative Investments opened its 2026 Middle East Forum with a panel titled "Private Markets: The Emerging Opportunities and Threats," exploring how the rapid expansion of non-bank capital is altering market dynamics and regulatory perimeters in the GCC. Private credit, asset-based lending, and secondaries were each identified as fast-growing segments with distinct risk and return profiles for regional allocators. The session also incorporated SBAI's PMV work, which provides governance standards covering transparency, consistent valuation, and investor protection as these markets scale.

The scale of global growth underpins the regional interest. Deloitte analysis notes that global private credit assets under management have more than doubled to over US$2 trillion since 2019. Major asset managers including BlackRock and Blackstone project a potential US$30 trillion addressable market over the long term - a figure that is drawing GCC institutional and sovereign capital at increasing pace.

Retailisation - Who Gets Access and on What Terms?

Retailisation - the extension of historically institutional strategies to a broader, semi-professional and affluent investor base - was identified at the Forum as a defining structural theme for the Middle East. The SBAI session examined how retailisation is reshaping fund structures, including vehicle types, liquidity terms, and minimum ticket sizes, and how this shift is altering competitive positioning and the regulatory perimeter for fund distribution.

A concrete example of this trend is already visible in the UAE. As reported by UAE Advisor Guide, EIGHTClouds recently launched a US$300-plus million UAE real estate alternative fund with a minimum ticket size of US$50,000 and annual redemption windows at independently marked-to-market valuations. Director of Investments Oliver Wall described the fund as enabling a broader pool of investors to access a professionally managed residential strategy, according to PE Insights. This structure - lower minimums, periodic liquidity, and independent valuation - illustrates how managers are adapting private-market features to suit the GCC's growing mass affluent investor segment.

Sovereign Wealth Funds Anchor the Regional Ecosystem

Sovereign wealth funds have been instrumental in catalysing the GCC's private credit market. Mubadala alone has formed at least seven partnerships with global credit firms including Apollo, Ares, Blackstone, and Goldman Sachs, committing over US$5 billion to private credit strategies deployed both within the UAE and internationally. The emergence of Lunate, a US$110 billion alternative asset manager based in Abu Dhabi, and Chimera's US$2 billion private credit joint venture with Alpha Wave in 2022 further underscore the scale and ambition of regional platforms in this asset class.

These commitments reinforce the structural case for private credit in the GCC. The AIMA Middle East Forum 2026 includes a dedicated session on the private credit opportunity, and AIMA has announced a new Private Credit Summit in Abu Dhabi in partnership with Abu Dhabi Finance Week. AIMA CEO Jack Inglis has described the Middle East as "one of the most exciting regions for asset management," reflecting the strength of regional capital flows into non-bank strategies.

A Structural SME Funding Gap Underpins the Opportunity

The structural case for private credit is reinforced by a significant and persistent funding gap. Globally, banks allocate around 22% of their loan books to SMEs, but in GCC countries the figure sits below 2%, according to Deloitte analysis. Large government infrastructure programmes in Saudi Arabia and the UAE are absorbing substantial system liquidity, further limiting banks' capacity to extend credit to smaller borrowers. The unbanked SME segment alone is projected to represent approximately US$200 billion in financing needs across the region by 2030.

UAE-specific factors amplify this opportunity. The country's approximately 40 free zones and relaxed visa regimes host a dense concentration of trade-oriented SMEs that are natural candidates for receivables-backed and trade finance structures. Meanwhile, Buy Now Pay Later platforms such as Tabby and Tamara are increasingly reliant on flexible working-capital lines from private credit providers as they scale - given that traditional bank facilities often lack the required speed and flexibility. UAE Advisor Guide projects the GCC private credit market at around US$5 billion in 2026, representing 25% year-on-year growth, with potential expansion to US$12 billion by 2030.

Regulation and Legal Standards Are Keeping Pace with Growth

Regulatory reform has been a critical enabler of the private credit expansion, a point that featured prominently across the SBAI Forum agenda. The introduction of dedicated Private Credit Fund Rules in 2023 was identified as a major growth catalyst, alongside new bankruptcy legislation and the alignment of DIFC and ADGM frameworks with common law standards. These reforms have improved enforcement mechanisms, investor protections, and the predictability of outcomes in distressed lending situations, making it easier for institutional lenders to price legal risk in private transactions.

Legal and documentation standards are also tightening at the deal level. Analysis by Pinsent Masons and A&O Shearman, cited by UAE Advisor Guide, indicates that new private credit deals in 2026 increasingly include enhanced reporting obligations, cash-sweep mechanisms, and operational covenants providing lenders with deeper visibility into borrower performance. For borrowers, this translates into faster and more flexible capital than traditional bank loans - at the cost of higher governance and ongoing reporting standards. The SBAI's emphasis on PMV governance at the Forum signals that the industry is actively seeking to embed these protections as the market opens to a broader investor base.

What Clients are Asking their Advisors

What does 'retailisation' of alternative investments mean for GCC investors?

Retailisation refers to the process of making investment strategies - such as private credit and real estate funds - that were previously available only to large institutions, accessible to a broader base of affluent and semi-professional investors. In the GCC, this is happening through lower minimum ticket sizes, periodic liquidity windows, and independently valued fund structures designed for the mass affluent segment.

How can UAE-based investors access private credit funds in 2026?

UAE-based investors can access private credit through regulated fund structures launched under ADGM or DIFC frameworks, which now have dedicated Private Credit Fund Rules. Entry points are becoming more accessible, with some funds setting minimum ticket sizes as low as US$50,000, alongside annual redemption mechanisms and independent valuations.

Why are GCC banks not filling the SME lending gap that private credit is targeting?

In GCC countries, SME lending accounts for less than 2% of bank loan portfolios, compared with around 22% globally. Regional banks focus primarily on government-backed contracts and large established corporates where collateral is easier to secure. Large infrastructure programmes in Saudi Arabia and the UAE are also absorbing significant system liquidity, reducing banks' capacity to lend to smaller borrowers.

What are the key risks of the private credit boom in the Middle East?

The main risks include illiquidity - private credit cannot easily be sold before maturity - and the complexity of valuing non-publicly traded instruments. The SBAI's Portfolio Management and Valuation framework specifically addresses these concerns by promoting consistent valuation and governance standards. Investors must also carefully assess credit quality in a market that is still maturing, while borrowers face heightened transparency and covenant obligations compared with traditional bank lending.