Giga-projects squeeze liquidity for Saudi banks

Giga-projects squeeze liquidity for Saudi banks

Banks in Saudi Arabia are being pushed to finance the kingdom’s colossal Vision 2030 projects, triggering a liquidity squeeze in the mid-market sector and creating demand for private credit, a senior executive at Rothschild & Co told a conference in Abu Dhabi Private credit refers to non-bank lending, where investors provide debt financing directly to […]

Mid-market being hit

Opportunity for private credit

Openings in receivables financing

Banks in Saudi Arabia are being pushed to finance the kingdom’s colossal Vision 2030 projects, triggering a liquidity squeeze in the mid-market sector and creating demand for private credit, a senior executive at Rothschild & Co told a conference in Abu Dhabi

Private credit refers to non-bank lending, where investors provide debt financing directly to private companies.

Saudi Arabia’s Vision 2030 economic transformation, which is designed to end the kingdom’s dependence on fossil fuels, requires $100 billion of foreign direct investment (FDI) inflows annually by 2030. However, in 2022 the kingdom only managed $33 billion.

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“Banks are being forced to lend en masse to support Vision 2030,” Naveen Bhojwani, managing director of debt advisory, restructuring and special situations for emerging markets at