Hassana, Franklin Templeton ink $150m MoU to boost Saudi private credit market

The agreement aims to expand access to alternative financing, particularly for mid-sized companies, which make up nearly half of Saudi Arabia’s employment but account for less than 10 per cent of total bank lending.

“This strategic partnership is a testament to our continued commitment to the Saudi market,” Jenny Johnson, president and CEO of Franklin Templeton said. “As both firms seek to collaborate on investment opportunities in the kingdom, our goal is to support private sector growth, drive economic diversification, and contribute to Vision 2030.”

Hassana, Franklin Templeton deal builds on partnership

Hassana’s chief investment officer for International Markets, Hani Aljehani, noted that the deal builds on an “established partnership” with Franklin Templeton. “We look forward to exploring opportunities in Saudi private credit to broaden financing solutions for underserved segments of the market,” he said.

Hassana, which manages more than SAR1.2tn ($320bn in assets, is one of the region’s largest institutional investors.The firm plays a key role in deploying capital across asset classes and geographies in support of Saudi Arabia’s long-term development goals.

Franklin Templeton, headquartered in San Mateo, California, has been active in the Middle East for over 25 years.

The asset manager opened a new office in Riyadh in March 2024 and now offers a range of services including MENA fixed income, global sukuk, Saudi fixed income, and GCC private cedit strategies from the kingdom.