Saudi projects can weather interest rate hike, economist says
Omar Bahliwa says ongoing Saudi projects may withstand higher rates, though firms with large fixed assets could feel more impact.
Key Takeaways
AIOmar Bahliwa, head of the Core Business Bureau for Economic Consulting, said that ongoing projects in Saudi Arabia are likely to absorb the impact of rising interest rates, especially as the latest increase was 25 basis points.
Speaking to Al Ekhbariya TV, Bahliwa added that this modest rise supports continued growth of projects in the Kingdom.
He explained that companies relying heavily on fixed assets and requiring financing to purchase real estate and other assets will be more affected by higher interest rates.
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Conversely, he noted that commercial or investment operators with available liquidity may be better positioned under current conditions.