Stride Ventures, a India-based player in venture debt, has announced a significant expansion across the Gulf Cooperation Council (GCC), with Saudi Arabia at the centre of its regional strategy.

This includes doubling its local team and opening a second regional office, signalling a growing focus on alternative financing models in the region.

The announcement aligns with the release of the inaugural Global Venture Debt Report 2025, published by Stride Ventures in collaboration with consultancy firm Kearney.

According to the report, while the global venture debt market has grown at a compound annual growth rate (CAGR) of 14% over the past five years, the GCC market has expanded at 54% CAGR, reaching US$500 million in 2024 from $60 million in 2020.

Saudi Arabia has been a key driver of this growth.

This development is largely attributed to Vision 2030, Saudi Arabia’s initiative to diversify its economy beyond oil.

State-backed efforts such as the Jada Fund of Funds, which manages US$1.07 billion in assets, and collaborations with international asset managers including Goldman Sachs and Franklin Templeton, have helped bolster private credit markets.

Regulatory bodies and innovation hubs in Abu Dhabi, such as the ADGM and Hub71, have also contributed to creating a supportive environment for venture debt and private capital.

Historically, traditional banks in the GCC have been hesitant to lend to early-stage, asset-light startups.

Venture debt, which offers non-dilutive and flexible financing, has emerged as a viable alternative.

Companies like Tabby and Tamara in the fintech sector have secured over US$100 million each in venture debt deals, setting precedents for other sectors such as logistics, healthtech, and climate tech.

Stride Ventures has grown its team in the GCC by more than 60% over the past year and aims to triple its regional assets under management by 2026.

The firm is targeting a US$500 million commitment in the region over the next three to five years.

Its most recent fund is reportedly close to being oversubscribed.

Currently, Stride Ventures has an active investment pipeline of approximately US$110 million in the region, with average deal sizes around US$10 million.

This points to increasing demand among startups for debt financing that avoids equity dilution.

Stride’s model of providing substantial, flexible funding is intended to support startups aiming for rapid but sustainable growth.

There is also a noticeable shift in talent flows, with senior professionals from established financial centres such as Silicon Valley, London, and Singapore relocating to Riyadh.

“Saudi Arabia is shaping the future of venture capital and private credit with intention and scale,”

said Fariha Ansari Javed, Partner at Stride Ventures.

“We are seeing a new generation of founders who understand the value of non-dilutive capital to scale responsibly and an equally ambitious set of investors in the region ready to fuel their growth.”

This signals a broader shift in the region’s financial role.

Traditionally viewed as a source of capital, the Middle East is now positioning itself as a centre for innovation financing.

As Javed noted,

“Saudi Arabia is moving from being a capital source to becoming a capital magnet. Stride is proud to be part of this next chapter.”

The key question now is not whether venture debt will take hold in the GCC, but how quickly it will scale, and whether regional institutions can evolve to meet the needs of a changing investment landscape.

Featured image credit: Edited by Fintech News Middle East, based on image by konevi via Unsplash