Attractive investment opportunities currently exist in Saudi Arabia, particularly in the consumer, housing, and tourism sectors, where investors can achieve high long-term returns, in 20 or 30 years.
Investors are currently allocating their assets to emerging markets, with a significant share expected to be allocated to Saudi Arabia. Given the current geopolitical situations worldwide, investors are choosing Saudi Arabia for its strong and safe economy.
At The Family Office, we expect at least a 0.25% interest rate cut after the US presidential elections, with the likelihood of another 0.25% cut, due to the slowdown in inflation.
Lower interest rates will impact certain types of private credit, such as floating rate private credit. In contrast, other types, such as private credit with locked capital for five years, will not be affected. Private equity will benefit significantly from lower interest rates, emphasizing the need to maintain a balanced portfolio.
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