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PwC data projects the GCC private credit industry expanding to between $11 billion and $20 billion within five years, a range that reflects compound annual growth rates of 15 to 30 percent from a still-nascent base. The assessment identifies strong demand from small and medium-sized enterprises chronically underserved by conventional banks together with ample regional capital pools and supportive government policies as the main drivers. Maxim Lukyanov, chief executive of UAE-based Nemax Finance, described the GCC in a recent contribution as the next frontier for private credit, noting that the regional lending gap exceeds $250 billion while SMEs account for less than 10 percent of total lending compared with roughly 20 percent in developed markets.
Global private credit assets have swelled from roughly $300 billion in 2010 to more than $2 trillion today, according to a separate PwC survey released in May 2026, with the consultancy expecting the total to reach $3.4 trillion by 2030. That expansion has been propelled by bank retrenchment after tighter regulation and investor appetite for higher yields in an environment of elevated interest rates. In developed markets, however, signs of strain have appeared, including the March 2026 episode in which BlackRock restricted withdrawals from a flagship private credit fund after receiving $1.2 billion in redemption requests, Reuters reported at the time.
Lukyanov, writing about his firm’s activities, explained that Nemax Finance operates an asset-backed model focused on real estate-secured co-investments for individuals and SMEs in Dubai and the wider GCC. The platform structures deals through special purpose vehicles established in the Abu Dhabi Global Market, which function as passive, bankruptcy-remote entities under English common law. Transactions typically carry loan-to-value ratios of 65 to 70 percent and deliver returns equivalent to 10 to 18 percent, framed as a disclosed markup under a Sharia-compliant Murabaha arrangement rather than conventional interest.
Clients enter agreements to repurchase the financier’s stake in the SPV over a standard 12-month term, with the principal repaid at maturity, Lukyanov stated. In the event of missed payments, the structure allows enforcement after three consecutive defaults, although extensions, bank refinancing or asset sales are routinely accommodated to protect the underlying property. The approach produced a default rate of 2 to 5 percent even amid regional volatility, according to Lukyanov.
Dubai’s real estate market delivered record activity in 2025, with investments surpassing AED 680 billion across 258,600 transactions as values rose 29 percent and volumes increased 20 percent, market reports cited by Lukyanov showed. Demand for the firm’s financing surged several-fold during early 2026 turbulence linked to regional conflicts, as investors sought to capitalise on discounted assets while conservative underwriting buffers absorbed price declines of 10 to 25 percent in selected segments, ValuStrat data indicated. Lukyanov added that the resilience observed supports further expansion, including into Saudi Arabia where Vision 2030 initiatives are expected to generate substantial financing requirements.
Lukyanov noted that the platform’s model draws on the hard-money lending precedent common in the United States, prioritising collateral value and transaction speed over traditional credit scores. He advocated proactive engagement with policymakers to shape a transparent regulatory framework as the sector scales, emphasising the need for oversight that balances innovation with investor protection. The PwC forecasts align with broader industry momentum that has seen global institutions deepen their presence in Gulf private credit and related wealth markets over the past year.
