Saudi Arabia Shifts To Bond To Financial, Entertainment and Real Estate Sectors

By Claire Ann Austria

Oct 13, 2016 06:00 AM EDT

Saudi Arabia is expected to do the issuance of bonds during the upcoming period to fill any possible gap in its annual budgets in case oil prices kept on falling.On the level of investment in the bonds and instruments markets, Saudi Arabia has established an independent financial market for this vital sector.

On the Saudi real-estate market, the report expressed a positive outlook. "Population growth is expected to increase demand despite decline in buyers' purchasing capacity. The latest government initiatives reducing the deposit were also a positive development," stated the report.

Saudi Arabia is expected to change the investment map in the region in the upcoming months since the local market is anticipated to be the first destination of foreign capitals especially in several vital sectors that are considered the core of investments.

Major sectors that might make a difference in the coming period on the level of capital surge are: entertainment, tourism, retail, real-estate development and the industrial sector, taking into consideration the new movements with regards to easing conditions on investments.

On the level of entertainment, Saudis are considered on top of nations who prefer to travel during vacations because the local entertainment sector does not appeal to them. This actually urged Saudi Arabia to establish an independent authority for entertainment, the thing which indicates more projects are to be implemented in this sector.

In a related matter, Alkhabeer Capital issued its report on international real-estate market, tackling opportunities and possible risks of the U.S. and Saudi real-estate markets. The report also included a detailed analysis of the British real-estate market and its performance.

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