It has been since forever that Saudi Arabia has seen massive amounts of foreign investments dictate the economy of the kingdom and with massive amounts of oil found the economy flourished encouraging more and more investors from other countries to come and benefit from it. However, there was one catch. The investors weren’t allowed ownership of any of the businesses that they invested in Saudi Arabia. But that is about to change.
Saudi Arabian Government has sought modern solutions for their economy and looked to alternate sources to provide reliable income and further improve the economic condition of the country. The Vision 2030 showed that the government was ready to implement lenient measures in an attempt to encourage more mergers and acquisitions.
The findings of the global CEO outlook survey mean that opportunities are aplenty, and it is a good time to look out for deals in different regions and different sectors,” said Al Fozan.
“Confidence is being driven by international investors keen to invest in long-term projects, which reflects back onto international players looking to expand into promising geographies that offer high returns while operational costs remain low.”
“Mergers and acquisitions activity in Saudi Arabia will increase in the coming years, as the government carries out reforms to diversify the Kingdom’s economy and opens up the market for Foreign Direct Investments (“FDI”), Al Fozan stated.
The surveys have shown how massive companies would rather prefer to buy out the competition than to compete with them. This way they are able to control more part of the market with less resistance and with the huge amount of cash flow present in Saudi Arabia they are willing to invest huge amounts of money with a strong promise of healthy returns that could flourish the economy and fill their pockets as well.