KKR enters Saudi credit arena with ACWA desalination plant

KKR & Co. completed its first private credit deal in Saudi Arabia by financing a desalination project backed by ACWA Power.

The backing is for the Rabigh 3 independent water project, a large-scale seawater desalination plant on the Red Sea coast that will supply potable water to Mecca and surrounding regions, the two companies said in a joint statement.

New York-based KKR, which has more than $500 billion in assets under management and a growing private credit business, will act as anchor investor for the project. ACWA, which is majority-owned by the kingdom’s Public Investment Fund, is one of the largest private operators of power generation and water desalination assets in the Middle East, Africa, and Asia.

The project is part of Saudi Arabia’s broader push to expand water infrastructure capacity as demand rises from population growth, urban development and industrial activity.

ACWA CFO Abdulhameed Al Muhaidib called Rabigh 3  a “cornerstone asset” for water security in Saudi Arabia, saying that “the strong participation from international investors reflects its quality, reliability, and long-term value.”

Julian Barratt-Due, KKR’s Head of Middle East Investing, said the deal reflects the firm’s “broader ambition to scale our presence across the kingdom, deepen partnerships with leading corporates, and deploy capital behind essential infrastructure.”