Custodian of the Two Holy Mosques King Fahd bin Abdul Aziz on Sunday received the 38th annual report of the Saudi Arabian Monetary Agency (SAMA), which was presented to him by SAMA Governor, Hamad Al-Sayyari.
Speaking on the occasion, Al-Sayyari said that the Kingdom’s monetary and banking sectors continued their growth in 2001 and 2002, and that banking deposits increased by 16.8%, while net foreign assets of the banks increased by 32.1%. For the third consecutive year, the local stock market continued its good performance, leaving a positive impact on the monetary, banking and financial sectors.
Al-Sayyari said that the revenues of this year’s general budget amounted to SR170 billion, while expenditure was estimated at SR209 billion. The budget was formulated in a manner that would ensure continuity in economic development programs, and at the same time realize improvement for the standards of living of citizens.
Citing the great attention accorded to education, health, social affairs and infrastructure projects, Al-Sayyari said that over SR22 billion would be allocated to new projects and the expansion of existing projects. “The general budget is realistic because we have accounted for expected changes and developments in local and international arenas,” he said.
Al-Sayyari praised the sound economic policy adopted by the Kingdom, and said that this sound policy will have a positive impact on the country’s economy, and would help to attract investors. He noted that recent economic measures are aimed at diversifying sources of income, broadening the productive base and enhancing the role of the private sector in the development process, as well as mobilizing local and foreign savings for investment in the productive and service sectors. “Despite the achievements attained with regard to improving the local economy and the investment environment, we should intensify efforts to confront challenges,” he said.
Citing challenges facing the country’s economy, Al-Sayyari said: “They include a low rate in real economic growth, dependence on oil revenues and population growth. In order to tackle this situation, it is necessary to work to improve the local economic environment and develop Saudi human resources, which constitutes the fundamental core of development. To confront these challenges, the state has decided to diversify its productive base as a strategic option to enhance economic stability.”
Al-Sayyari stressed the importance of promoting private sector activities, and enabling the sector to boost the development process. He called for the removal of all impediments to free enterprise, the effective utilization of available resources, and the redoubling of efforts to activate local savings so as to make them conform to requirements of increasing investment. Al-Sayyari underscored the importance of tackling the problems of debt accumulation, which has an adverse impact on the development process and investment projects.
Al-Sayyari urged the redoubling of efforts to increase non-oil revenues, and resolve the problems of debts. He noted that the state had decided to carry out the privatisation program so as to boost the role of the private sector in service sectors. “Such a trend will contribute to easing the burdens on the general budget, make possible the proper utilization of available resources, and improve the quality of services,” he said. Al-Sayyari praised the decisions of the Supreme Economic Council pertaining to the privatisation strategy. He pointed out the Saudization policy adopted by the state, and said that the private sector should positively contribute to implementing this national policy. Al-Sayyari underlined the importance of developing the educational curricula and training programs, so as to make them conform to the requirements of the labour market.
King Fahd lauded the efforts exerted by the Governor of SAMA and his colleagues, and prayed to Almighty Allah to bless their efforts.
The audience was attended by Prince Saud bin Fahd bin Abdul Aziz, Vice-President of General Intelligence, Prince Abdul Aziz bin Fahd bin Abdul Aziz, Minister of State, Member of the Cabinet, and Chief of the Court of the Cabinet’s Presidency, and a number of senior officials.
Source: SPA
