How #SaudiArabia is likely to fund its Vision 2030 ambitions - Arabianbusiness

How Saudi Arabia is likely to fund its Vision 2030 ambitions - Arabianbusiness

Saudi Arabia's debt capital market is set to take on a larger role in financing Vision 2030, the Gulf kingdom's plan to transform and diversify its economy and grow the private sector, according to S&P Global Ratings.

The ratings agency said in a new research note that authorities aim to deepen their debt and equity markets to increase foreign direct investment.

The strategy also entails investments by the government and its related entities as well as the private sector of about SR12 trillion ($3.2 trillion) by 2030.

"We think banks will continue to play an important role in financing Vision 2030, but foresee an increased role for the local capital market," S&P said.

It said it believes an increased amount of the funding will be pushed onto the balance sheets of government-related entities and broader private sector.

"While the US dollar will continue to be the currency of choice for issuance in Saudi Arabia, we expect to see gradually greater use of Saudi Arabian riyal-denominated issuance as the local market develops," said S&P Global Ratings credit analyst Mohamed Damak.