Hassana Investment Company and Franklin Templeton have signed a $150m memorandum of understanding to explore a ‘strategic partnership’ targeting Saudi Arabia’s private credit market.

Almost 50 per cent of employment across Saudi Arabia comes from mid-sized companies, but those firms receive less than 10 per cent of total bank lending.

The partnership will aim to strengthen access to financing for high-growth companies in the region, the firms said. Hassana is already one of the region’s most active institutional investors, with around $320bn of assets under management.

“This strategic partnership is a testament to our continued commitment to the Saudi market,” said Jenny Johnson, president and chief executive of Franklin Templeton.

“The MoU marks an important step in further strengthening the relationship between Hassana and Franklin Templeton, as both firms seek to collaborate on investment opportunities in the Kingdom, with a focus on supporting the growth of private sector enterprises, advancing economic diversification and contributing to the objectives of Vision 2030.”