The UAE-born gym operator is scaling beyond the Gulf as institutional investors continue backing consumer businesses despite regional geopolitical tensions.

GymNation secured a USD 100 million private credit facility from HPS Investment Partners, part of BlackRock. The Dubai-based fitness company plans to use the funding to accelerate expansion across the GCC, invest further in its AI and data infrastructure, and launch into Asian markets as it pushes beyond its core Gulf footprint.

Why You Should Care

The deal signals that global institutional capital is still flowing into high-growth GCC consumer businesses despite heightened geopolitical volatility across the region.

Private credit has become an increasingly important funding route for regional companies looking to scale without pursuing traditional equity fundraising or public listings. GymNation’s financing also reflects growing investor confidence in consumer sectors tied to lifestyle, wellness, and recurring subscription revenue.

For the GCC startup and business ecosystem, the transaction stands out not only because of its size, but because it involves a UAE-founded company expanding from a single-market operator into a regional platform with international ambitions.

Founded in 2018 by Loren Holland, Frank Afeaki, and Ant Martland, GymNation launched its first gym in Al hQuoz, Dubai, with a focus on affordable fitness. 

Since then, the company has expanded to nearly 50 locations across the UAE, Saudi Arabia, and Bahrain.

The new facility includes USD 75 million in committed capital alongside an additional USD 25 million accordion feature that can be accessed later. According to the company, the funding will support three main priorities over the coming years.

The first is geographic expansion. GymNation aims to grow to more than 100 locations within three years while strengthening operations across Saudi Arabia, the UAE, and Bahrain. The company is also establishing a new regional headquarters in Riyadh as Saudi Arabia becomes a larger part of its growth strategy.

The second priority is technology investment. GymNation said it plans to expand its proprietary platform and continue investing in AI, machine learning, and data infrastructure that support pricing, operations, and customer retention.

The third is international growth beyond the GCC. The company said it is preparing to enter Asia, marking its first expansion outside the region.

The financing also marks an exit for Ruya Partners, which previously backed GymNation’s 2023 management buyout alongside Tricap Investments. That transaction gave the founding team full control of the business before the latest refinancing by HPS.

The Ripple

The transaction reflects how private credit is becoming a more visible financing tool across the GCC, particularly for later-stage companies with predictable cash flow and regional scale.

While venture capital remains concentrated around early-stage technology startups, larger institutional investors are increasingly targeting established consumer businesses that can demonstrate recurring revenues and operational expansion across multiple Gulf markets.

The deal also highlights Saudi Arabia’s growing role in regional expansion strategies. GymNation’s decision to establish a Riyadh headquarters mirrors a broader shift among GCC companies, positioning Saudi Arabia as a central operational hub for future growth.

What to Watch

The next phase for GymNation will depend on whether it can successfully scale outside its home markets while maintaining the affordability-focused model that drove its growth across the Gulf.Its planned entry into Asia will test whether a GCC-born consumer brand can replicate its operating model in other fast-growing fitness markets. Investors will also be watching how effectively the company uses AI and data infrastructure to improve margins and support expansion at scale.