EghtesadOnline: Top Saudi officials and executives are meeting U.S. Investors in New York to lure overseas cash, less than a week after Congress unblocked legislation allowing the families of 9/11 victims to sue the Arab country.
Saudi Capital Market Authority Chairman Mohammed Al-Jadaan and Tadawul stock exchange Chief Executive Officer Khalid Al Hussan are among officials attending the two-day event organized by JPMorgan Chase & Co., the bank said in an e-mailed statement on Monday. Senior representatives of the kingdom’s Economy ministry and central bank will also be present.
The meetings come at a difficult moment for the Arab world’s largest economy. The U.S. Senate last week voted to overridePresident Barack Obama’s veto of a bill allowing Saudi Arabia to be sued for its alleged links to the Sept. 11 attacks, which might delaythe country’s first dollar bond issuance. Meanwhile, the benchmark stock gauge entered its second bear market this year after a series of cuts to government salaries and bonuses triggered a selloff, reports Bloomberg.
Saudi Arabia plans to sell debt and attract foreign investors to its local market as it seeks to plug an estimated shortfall of about $100 billion in its budget this year and fund an economic transformation plan to wean itself off oil revenue. The Tadawul, which is trading near the lowest level in since 2011, is the worst performer in the six-nation Gulf Cooperation Council this year, down about 21 percent.
JPMorgan is one of the coordinators of the bond sale, which could raise at least $10 billion.