British newspaper: Saudi investors are beginning to move their money out of the country
12:40 - 02/11/2019
confidence of Saudi investors has become shaky as a result of the situation in Saudi Arabia, noting that many businessmen have begun to transfer their money out of the Kingdom.
The newspaper said in a report published by the "BBC" excerpts from it and saw it (information), that "the reduction of government spending by Saudi Arabia strictly in accordance with the economic reform plan pursued by Crown Prince Mohammed bin Salman paid off for the first time in three "But at the same time, businessmen have been hit hard by new government measures that have raised costs for them and shaken investor confidence as Mohammed bin Salman tries to reform the Middle East's largest economy."
“The Saudi Finance Minister, Mohammed Al-Jadaan, insists that“ morale has become positive, ”as budget projections indicate that government spending in 2020 will fall to SAR 1.02 trillion compared to the projected budget of SAR 1.05 trillion this year. It is expected to decline to SR 955 billion in 2022. ”
Monica Malik, chief economist at Abu Dhabi Commercial Bank, does not hide that “there are fears that expectations of a decline in government spending will not be realized due to the decline in the world oil price, in addition to the time the government needs to implement its mega projects that will contribute to the growth of the state's dependence on non-oil sources of public income. For the country.
The newspaper pointed out that "local capital owners are divided about the impact of the decline in government spending on the local market where some see that there is a rise in the activities of the local market, while the other section that the local market is still not benefited from this decline yet," stressing that "some companies The local government is still suffering from the imposition of fees on foreign labor, which constitutes about 90% of the private sector, in addition to the government's efforts to implement the Saudization law.
"The confidence of businessmen and businessmen has not yet recovered from the Crown Prince's campaign against corruption in 2017, in which more than 300 business leaders and princes were held at the Ritz-Carlton Hotel, and had to pay a lot of money and hand over financial assets to secure their release," she said. "What happened has led many Saudi capitalists to transfer their money abroad, which contributed to the slow growth of investment in the local economy, and the killing of Saudi journalist Jamal Khashoggi slowed the flow of foreign investment to the Kingdom." Done / 25