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Gemcorp Closes $20 Million Private Credit Deal in Saudi Arabia
Emerging markets asset manager Gemcorp closed its first direct lending transaction in Saudi Arabia. The Shariah-compliant facility will fund procurement and financing services for small businesses through SILQ.
Jul 13, 4:48 AM·1m read1 source
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Gemcorp closed a $20 million private credit deal in Saudi Arabia, its first direct lending transaction in the kingdom, Semafor reported. The funds will go to SILQ to provide procurement, payments, and financing services to small businesses. The transaction was structured to be Shariah-compliant, said Petar Ivanovic, principal at Gemcorp.
Saudi Arabia aims to increase SMEs' GDP contribution from 20% to 35% by 2030 and has directed financial institutions to allocate at least 20% of their loan portfolios to smaller firms. Gemcorp plans to build a portfolio focused on the intersection of fintech and private credit in Saudi Arabia. Atanas Bostandjiev founded Gemcorp in 2014.
The firm has deployed more than $9 billion into markets including Angola, DR Congo, and Venezuela. It plans to raise a $1 billion fund out of Abu Dhabi focused on Africa and is also raising $1 billion in Saudi Arabia targeting deals in mining, rare earth minerals, technology, and social infrastructure.
PwC stated the Gulf countries' private credit market is expected to grow 15-30% annually over the next five to six years.
The King Abdullah Financial District is located in Riyadh.
