Saudi Arabia is the fourth-largest loan issuer in the MENAT region for 1H19 and fifth in the entire CEEMEA market. However, placing the country’s position in perspective, there was a 6% year-on-year increase in loan volume in 1H18. Sub-Sahara Africa and Central & Eastern Europe gained market share whilst volumes in the MENAT region fell by 18% over the same period.
In contrast, 1H19 project financing activity totaled USD 600m worth of volume, representing a 100% year-on-year increase from 1H18. This increase reflects goals set out by Vision 2030, which includes concentrated efforts on infrastructure and privatization.
Campbell Steedman, Managing Partner, Middle East thinks this an exciting time for the Saudi Arabia and the Middle East region, “The marked increase in project financing activity over the past year is also a clear indicator that capital inflows into Saudi Arabia are on an upward trajectory, and that confidence in the kingdom’s privatization and wider reforms programs remain high.”
Winston & Strawn recently took part in the Saudi Arabian M&A and Capital Markets Forum in Dubai. The Saudi Arabian M&A and Capital Markets Forum brought together dealmakers and provided an overview of the market through panels and case studies.
Read more on the Saudi Arabian bond market and loan refinancing landscape here via the Eye Of Riyadh.