Draft private sector law to boost infrastructure investments in Saudi: Moody’s

Saudi Arabia’s draft private sector law will make investment more attractive to private companies and enhance the credit quality of infrastructure deals, Moody’s Investor Service in a new report.

“The new law, which will exempt infrastructure investors from certain existing Saudi laws and ease real estate ownership restrictions among other things, will improve credit quality by making Saudi public sector actions and legal processes more transparent and predictable,” it noted.

While the new law will boost investment in established sectors like power and water, Kunal Govindia, assistant vice president – analyst, Moody's believes that they will be especially beneficial for transactions in new sectors such as social infrastructure because they will reduce uncertainty for creditors.

Saudi's push to make investment more attractive for private companies is a key pillar of its Vision 2030 plan, which also aims to diversify the economy away from natural resources.