Foreign direct investments have increased due to the encouragement of foreign investments by the Kingdom's positive policies.
“However, challenges remain at different levels and so foreign investments are not growing as fast as in other emerging markets,” according to Engineer Abdullah Al-Rashoud, CEO of BlomInvest.
The expectations are that due to favorable comparative advantages of the Kingdom's economy, more positive policies would help a faster inflow of foreign investments, he said.
Asked to identify the areas of major funding opportunities at the moment in Saudi Arabia, he stated energy sector historically has taken the largest share of funding.
However, Al-Rashoud confirmed that banks should be careful in financing mega projects otherwise they would end up with a lot of illiquid assets.
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