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Official says Saudi economy robust despite global crisis

Nearly 85 per cent of Saudi banking assets are in the local market and are not affected by the global financial crisis, according to a top official of the Central Bank.

  • By Mariam Al Hakeem, Correspondent
  • Published: 23:45 October 21, 2008
  • Gulf News

Riyadh: Nearly 85 per cent of Saudi banking assets are in the local market and are not affected by the global financial crisis, according to a top official of the Central Bank.

Dr Abdul Rahman Al Humeidi, deputy governor the Saudi Arabian Monetary Agency (Sama) for technical matters, asserted that the Saudi economy is in an excellent position.

Commenting on the decreasing inflationary trend, he said "the latest figures show that inflation is decreasing. We hope that the rate of inflation would continue to fall over the coming period."

He was speaking to reporters after opening a workshop on 'Credit classification in the light of the Kingdom's economic reforms,' here on Tuesday morning.

Strength proven

Dr Al Humeidi attached great significance to the workshop as it coincides with a financial storm lashing the global economy.

"The subprime mortgage crisis that began in the United States in 2007 has transformed into a severe financial crisis affecting major global markets, especially those in the developed countries," he explained. The Sama official said that the impact of this crisis would be minimal on the Saudi economy and financial system.

"The local financial system has proved its strength, and their commercial activities are in full swing, thanks to the liquidity and clear growth in profits. The effect of the global crisis is not posing any potential threats that would weaken the credibility of investors," he said.

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