RIYADH: Deputy Governor of Saudi Arabia said that investor showing more interest in Saudi economy despite an oil price that has halved in the past six months.
Sentiment is buoyed by heavy state spending and much-anticipated reforms to the Saudi stock market.
Lower economic growth is expected in the kingdom this year which is likely to experience its first budget shortfall since 2011.
The deputy governor of Saudi Arabian General Investment Authority (SAGIA), Saudi Arabia’s government-run investment authority, Prince Saud Al-Faisal, told the BBC in Dubai: “We’ve seen investor confidence increase in 2015. That’s been our observations.”
Despite the lower growth forecast, Prince Saud said: “We haven’t observed any negative effects to the lower oil prices from our side as an organization.”
Saudi Arabia is in a strong position to weather major cuts to its oil revenues with an estimated $750bn (£507bn) in foreign exchange reserves built up during the boom times.
However, during the oil rush the effectiveness of regulations to help local businesses prosper in Saudi Arabia’s capital Riyadh has worsened, according to a World Bank global comparison report.
