Saudi Arabia's debt capital market, the largest in the Middle East, is set to grow and take on a larger role in financing Vision 2030, revealed a credit report prepared by S&P Global Ratings.
Moreover, the agency said it expects to see gradually greater use of Saudi Arabian riyal-denominated issuance as the local market develops.
Nevertheless, the currency peg between the US dollar and the riyal, which the agency predicted would remain, could help attract foreign investors actively hunting for yield in an environment of low interest rates.
According to S&P Global Ratings, a gradual deepening of the local capital market would likely increase levels of transparency and could reinforce governance practices in Saudi Arabia in coming years.
