The regulatory authorities in Saudi Arabia plan to expand the market for local debt instruments, as part of the Kingdom’s attempt to raise extra capital to finance its huge building projects. Abdulaziz Bin Hassan, a member of the Capital Market Council, said that the total issues in the Saudi market to this day are approximately $ 228 billion, equivalent to 18% of gross domestic product, which indicates that the target should increase this percentage to 28% by increasing the borrowing. “We want the Saudi debt market to be the most important pillar for financing huge projects,” Bin Hassan added in an interview this month in London. Read more: Saudi Deposit Certificates .. An instrument that attracts successors and awaits the completion of organizational controls, trillion projects … and more urgent financing of the kingdom has turned into one of the largest construction markets in the world, with the launch of projects of more than $ 1.3 trillion since 2016 within the “vision 2030”, LED by Crown Prince Mohammed Bin Salman, which attracts and diversifies the investments, delves of the Crown Prince Mohammed bin. Also read: “Vision 2030” Saudi Arabia falls on its second phase this year .. What is achieved? The project portfolio contains everything from the Maldive resorts on the coast of the Red Sea to a ski slop in the heart of the desert, and new residential complexes in Riyadh, which reflect unprecedented urban ambitions in the region. However, as the size of these projects expanded, the need for great financing has increased, at a time when the Kingdom faces challenges associated with the decline in oil revenue due to low prices, which makes the finding of alternative financing sources more urgent. According to Abdulaziz Bin Hassan, a member of the Capital Market Authority, the attempts to join global indicators that encourage the escalation of the need for external financing of the kingdom to seek alternative tools for bank loans, and we want to overcome the financing gap through the debt tool. “Also read: Saudi Banks. The above profits and a warning of lack of liquidity and the Saudi debt market are still dominated by sovereign publications in the local currency, but the regulators have taken reform steps to develop the market, including the application of the settlement out of the market (OTC) last May, with the aim of bringing the market with international standards. Procedures for issuing debt instruments, to encourage more businesses to turn to public markets, and want to reduce the tax base to make the market more attractive to exporters and investors. Market reforms’ described.
Saudi Arabia aims to expand the debt market to finance its huge projects
