Gulf faces $1.7T financing gap
The article discusses the challenges and opportunities associated with financing in the massive investment cycle of Gulf countries over the next five years, requiring approximately $1.7 trillion. The report explains that this situation will compel the banking sector to diversify its sources of funding, as countries will rely on debt markets, private credit, and foreign direct investment to boost financial resources—especially given limited liquidity and the need to maintain capital and liquidity levels. It also highlights that Saudi Arabia and the United Arab Emirates will lead this boom, with a focus on improving the quality of banking growth and reducing dependence on local bank financing, by emphasizing bond and sukuk issuance and international capital markets. Additionally, the report underscores the importance of attracting foreign direct investment, particularly in the technology and energy sectors, as Saudi Arabia aims to achieve annual inflows of up to 388 billion riyals by 2030. It is also expected that sovereign financing and government issuances will remain a primary source of support for major projects in the region.
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