Wealthy Saudis sit on cash as purge casts shadow over investment | Financial Times

Wealthy Saudis sit on cash as purge casts shadow over investment | Financial Times:

Wealthy Saudi merchant families are holding back from investing in the kingdom as nervousness triggered by Riyadh’s anti-corruption purge exacerbates a fragile business climate.

According to bankers, private businesses have resorted to sitting on their cash, while some are looking for ways to shift funds offshore. Yet some wealthy Saudis fear their financial affairs, especially attempts to transfer money, are being monitored to prevent them moving assets overseas, the bankers say.

“A $30,000 transfer being made by a relative [of a well-connected businessman] was questioned by a government official at the bank,” said a Saudi wealth manager. “These are targeted — but huge scale — capital controls.”