Of course, they're not the only ones who see opportunities in Saudi Arabia, but they announced yesterday that they are <a href="http://bit.ly/Q9kcW">opening an office in Riyadh</a> and staffing it with eight people. I've been hearing from private equity people for months that while dealmaking is never easy, Saudi is a prime target right now. Why? It's simple, they say. Saudi has been overlooked in the past. Government spending is continuing despite the financial crisis, and the economy is the largest in the GCC, even if its industries aren't yet as dynamic or flashy as those in, say, the UAE. People are still spending money, and fundraising isn't as hard as it is elsewhere.<br/><br/>"As the largest Arab economy and the centre of the energy world, Saudi Arabia offers substantial investment opportunities," <b>Amr Dabbagh</b>, the Governor of the Saudi Arabian General Investment Authority, was quoted as saying in the article.<br/><br/>As <b>Arif Naqvi</b>, the chief executive of Abraaj, says in the article, PE firms also see Saudi as an important economy because of the expansion opportunities it offers for businesses in their existing portfolios. Even for firms that don't plan to make deals there, in other words, it's still an important part of a regional strategy.