Banks in the Kingdom of Saudi Arabia are a shelter in the financial storm that has hit world markets due to the current global economic crisis.
The impact of the global economic crisis on the Kingdom’s financial sector will not affect the banks and their liquidity or ability to achieve profit, says the new Governor of the Saudi Arabian Monetary Agency (SAMA), Dr. Mohammed Al Jasser.
Al Jasser said in an interview with CNBC Arabiya that the Kingdom’s Arab banking sector is unaffected because the vast majority of its investments and transactions are internal. As a result, Saudi banks’ dealings hinge upon local rather than external factors.
He added that the Kingdom’s government expenditure remains stable and its 2009 budget will allow the Kingdom to continue national projects.
“SAMA will build upon what the institution already has achieved, especially in regard to the Kingdom’s financial stability,” said Al Jasser, noting that “115% of local Saudi bank deposit funds are used within the Kingdom.”
The new Governor concluded that the financial fallout from the global economic crisis is still in full swing and has not reached an end yet.
As the region’s first and premier 24-hour live Arabic Business TV channel, CNBC Arabiya recently re-launched to include 12 new programmes. Along with a new programming schedule, the CNBC Arabiya re-launch reveals a brand new studio layout.