KKR has completed its first private credit deal in Saudi Arabia, providing financing to a water desalination plant.
As part of the strategic transaction, KKR will act as the anchor lender in a long-term financing solution for the Rabigh three desalination facility, which is majority owned by ACWA Power and supplies water to the Makkah region.
The deal marks a growing appetite for private credit in Saudi Arabia amid a broader expansion of global asset managers in the Gulf. Barings recently launched a $500m global real estate debt partnership with Abu Dhabi’s Mubadala Investment Company, while Arrow Global entered into a strategic partnership with InvestGB, the investment arm of Gulf Bank.
Last week, Ares also completed a $100m NAV facility with Dubai-based family office Patrimium Asset Management, as private credit activity accelerates across the region.
“This transaction marks an important milestone as KKR’s first investment and private credit transaction in the Kingdom,” said Julian Barratt-Due, managing director and head of Middle East investing at KKR. “ACWA Power is a best-in-class operator and a respected national champion, and we are proud to support one of Saudi Arabia’s most critical utility assets.”
The investment builds on KKR’s long-standing commitment to Saudi Arabia, where it has maintained a local presence since 2014, the firm said.
“Rabigh 3 IWP is a cornerstone asset for water security in the Kingdom, and the strong participation from international investors reflects its quality, reliability and long-term value,” said Abdulhameed Al Muhaidib, chief finance officer of ACWA Power. “This transaction demonstrates ACWA Power’s commitment to responsible finance, sustainable water infrastructure, and long-term environmental stewardship.”
