Saudi Arabia has yet to be able to raise foreign direct investment towards its Vision 2030 goals, prompting a turn to the Public Investment Fund (PIF) to prop up investment spending. Unless the government makes major strides to improve the local business environment and entice greater FDI, this is likely to continue. Even if oil prices fall back from current levels, the government and PIF will probably issue debt to finance spending. But this could raise concerns about rising on- and off-balance sheet liabilities further ahead.
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