Saudi Arabian Investors Confidence Remains Strong According To the Deputy Governor of a Body Which Attracts Investment to the Kingdom
Even with the price of oil falling by almost half in the last six months.
The statement of the deputy governor is supported by his government’s massive spending and the much awaited changes in the Kingdom’s stock markets.
A slowed economic growth is anticipated sometime this year in the kingdom and this is the first time since 2011 that the kingdom’s budget is going to experience a deficit.
Prince Saud Al-Faisal who is the deputy governor SAGIA (the government controlled investment body) while talking to the BBC in Dubai said that from what they observed they had noted investor confidence in the country increase in 2015. He went ahead stating that even though a slower growth had been predicted they didn’t see any negative effects to the current low price of oil.
Saudi Arabia remains strong to survive any economical effects that may come with huge cuts to the kingdom’s oil revenues thanks to the estimated $ 750bn in foreign exchange reserves that it had built during the oil boom period. Regulations that were put up to help local businesses in Saudi’s capital Riyadh amidst the oil rush have severed based on global comparison report released by World Bank.
Saudi Arabia has dropped from number 13 a position it was in five years ago to 49 currently out of 200 other countries in a report of doing business. The country’s business atmosphere in now being construed as negative in terms of how it resolves insolvency, establishing a business and enforcing contracts.
The President of the national competitive center (an agency set up with the aim of helping in improving the ease of conducting business in the kingdom) Prince Saud exuded his confidence in the kingdom’s ability to survive the current economic bubble. Prince Saud while talking to the BBC said that the World Bank and the International Finance Corporation (IFC) have changed how they calculated certain indicators and reforms. He lauded the move as positive change and said that it was something that will give the kingdom more incentive to continue with their economic reform process.
A former intelligence chief of the kingdom, Prince Turki Al-Faisal while speaking with the BBC back in March said that a nuclear deal with Iran may intensify a nuclear fuel race in the region. According to Prince Saud bin Khalid al Faisal (a young member of the house of Saud) the lifting of the sanctions on Iran could come with great potential such as increases investment and trade in the region as long as the political differences are resolved amicably.