Why Private Lending Structures Are Gaining Momentum Across the GCC

At ISP, we have seen a noticeable increase in discussions with investment managers, family offices and institutional clients across the GCC who are looking to launch private lending strategies within an internationally recognised investment framework.

While the underlying investment opportunities vary—from corporate lending and real estate debt to trade finance and specialty finance—the objective is often the same: combining regional investment expertise with an efficient, institutional-grade investment structure.

Private credit has become an increasingly important allocation for investors seeking diversification and attractive risk-adjusted returns.

At the same time, the UAE has established itself as a leading hub for alternative investment managers, with the DIFC providing a robust regulatory environment and access to regional and international investors.

As more managers originate proprietary lending opportunities across the GCC and beyond, they are also looking for investment structures that are familiar to professional investors and can integrate seamlessly with existing custody and banking relationships.

One trend we have observed is that investment managers are placing greater emphasis on the investment vehicle itself.

Alongside sourcing attractive private lending opportunities, they are looking for structures that offer institutional credibility, operational efficiency and seamless access for investors.

At ISP, we are seeing growing demand from investment managers, family offices and institutional clients seeking bespoke securitised solutions that allow them to bring private lending strategies to market efficiently.

In many cases, a Luxembourg-issued Credit Linked Note (CLN) provides an effective investment wrapper, combining the benefits of a recognised issuance platform with management expertise based in Dubai.

For investors, this approach offers access to a professionally managed private lending strategy through an internationally recognised investment product that can often be held through existing custody and private banking relationships.

While every transaction is tailored to the underlying strategy and target investor base, the combination of a Luxembourg issuance vehicle and a Dubai-based investment manager has become an increasingly common structuring solution for cross-border private lending opportunities.

We believe the demand for bespoke private credit structures will continue to grow as investors seek alternative sources of income and diversification, while investment managers look for efficient ways to package and distribute their strategies.

The combination of regional investment expertise with internationally recognised issuance platforms is becoming an increasingly common approach for cross-border transactions, particularly across the GCC.

Based on what we are seeing in the market today, Luxembourg-issued Credit Linked Notes managed by Dubai-based investment managers represent a structuring solution that is well positioned to support this evolving landscape.

As this trend continues, the focus will remain on delivering investment products that combine flexibility, operational efficiency and institutional credibility—qualities that are increasingly important for both investment managers and investors in today’s private markets. To discuss how it could work for your strategy, contact Kristina Nikolendzic, Head of ISP in Dubai.