10 years of industry development in Saudi Arabia
Author: Sameer Kazi, James Kirk (yBC.tv)Categories: Investment, Middle East
Tags: cash flow, infrastructure, liquidity, public equities, Qatar, Saudi Arabia, UAE
Industry development through the global financial crisisThe last 10 years. The market has been on the uptake for sure. There was a blip during the global financial crisis which everybody witnessed. But focusing on Saudi Arabia, where we come from, that market on the real estate side did not see a downturn, it just kept moving up. That was for a combination of reasons, because one – there was, given the Sharia compliant nature of that country, people didn’t invest in real estate structured products rather than in assets directly. So that helped them weather the storm very well. Also not a lot of debt was taken on so people were not distressed from a cash flow or an operations perspective to exit. So people held on very well. And given that the public equities were not doing very well, that liquidity came out and went into real estate into Saudi Arabia in particular. So Saudi has done phenomenally well over the last 10 years. Within the region, although there have been certain countries where there have been political unrest or local scenarios, other than that the region has held up and grown very well. UAE is a fantastic example, so is Qatar in terms of infrastructure that they’ve created and the benefits that they’re going to reap and are reaping from that, is really going to help them well for the coming 10/20 years.
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