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SAMA: Financial System a Key Contributor to Saudi Economic Growth

Riyadh, Saudi Arabia (Asharq Al-Awsat)
Riyadh, Saudi Arabia (Asharq Al-Awsat)
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SAMA: Financial System a Key Contributor to Saudi Economic Growth

Riyadh, Saudi Arabia (Asharq Al-Awsat)
Riyadh, Saudi Arabia (Asharq Al-Awsat)

 

The Saudi Central Bank (SAMA) has announced that the Kingdom’s economy experienced growth in 2022, despite global economic challenges. SAMA emphasized the significant contribution of the financial system in supporting this growth, with continued strength in asset and bank credit growth throughout the year.

According to a report by SAMA, the Saudi banking sector continues to maintain healthy capital levels, while liquidity ratios remain higher than regulatory requirements.

Regarding non-banking financial institutions, the report highlighted their strong performance.

Total premiums subscribed by insurance companies saw a rebound alongside non-oil sector growth. Additionally, finance companies recorded an increase in total assets.

SAMA Governor Ayman Al-Sayari stated that the Kingdom’s economy demonstrated strong performance in terms of gross domestic product and employment rates.

He emphasized that the financial system played a significant role in supporting this robust economic performance.

“Banks, insurance companies, finance companies, and payment service providers supervised by the central bank have worked towards expanding the scope of financial services to encompass all borrowers from various sectors of the private sector and individuals,” said Al-Sayari.

In the report, Al-Sayari pointed out that banks have expanded their lending activities to meet the ongoing demand for mortgage loans.

He emphasized that risk outcomes remained moderate throughout the year, reflecting the strength of the local economy.

Al-Sayari further emphasized the significant importance placed on the robustness of the banking system, given its crucial role in the economy.

Furthermore, the governor pledged the continued support of the central bank in fostering innovation in the financial sector, citing the deliberate increase in the number of financial technology companies operating in the Kingdom.

He added that the precautionary measures implemented by the central bank, including the legislative sandbox environment, aim to protect customers' interests and ensure the resilience of the financial sector while enabling innovation that serves both households and non-financial companies.

 

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US Job Growth Slowed Sharply in October amid Steady Unemployment Rate

A worker transports items during Cyber Monday at the Amazon fulfillment center in Robbinsville Township in New Jersey, US (Reuters/File)
A worker transports items during Cyber Monday at the Amazon fulfillment center in Robbinsville Township in New Jersey, US (Reuters/File)
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US Job Growth Slowed Sharply in October amid Steady Unemployment Rate

A worker transports items during Cyber Monday at the Amazon fulfillment center in Robbinsville Township in New Jersey, US (Reuters/File)
A worker transports items during Cyber Monday at the Amazon fulfillment center in Robbinsville Township in New Jersey, US (Reuters/File)

US job growth likely slowed sharply in October amid disruptions from hurricanes and strikes by aerospace factory workers, but a steady unemployment rate should offer assurance that the labor market remained on solid footing ahead of Tuesday's election.
The Bureau of Labor Statistics (BLS) showed that nonfarm payrolls increased by 12,000 in October from the previous month, after employment in September shot up by 223,000 jobs.
A Reuters survey of economists showed that nonfarm payrolls likely increased by 113,000 jobs last month after surging 254,000 in September. Estimates ranged from no jobs added to 200,000 positions created. October's anticipated payrolls count would be the smallest in six months.
Hurricane Helene devastated the Southeast in late September and Hurricane Milton lashed Florida a week later.
The Labor Department reported last week that there were 41,400 new workers on strike, including 33,000 machinists at Boeing and 5,000 at Textron, an aircraft company, when employers were surveyed for October's employment report. The remaining 3,400 were workers at three hotel chains in California and Hawaii.
Workers who do not receive a paycheck during the survey period, which includes the 12th day of the month, are counted as unemployed in the survey of establishments from which the payrolls number is calculated.
The Labor Department's closely watched employment report is the last major economic data before Americans head to the polls to choose Democratic Vice President Kamala Harris or Republican former President Donald Trump as the country's next president.
Polls show the race is a toss-up. Americans have not warmed up to the economy's strong performance, which has outshined its global peers, rankled by high prices for food and rents. Low layoffs have been the hallmark of the labor market's strength.
The unemployment rate was seen unaffected by the distortions as the striking workers would be counted as employed in the household survey from which the rate is derived. Workers unable to work because of bad weather would be reported as employed, “with a job, but not at work” as per the BLS' classification.
Economists said a marginal rise in the unemployment rate would not be alarming and expected the Federal Reserve to sort through the noise and cut interest rates by 25 basis points next Thursday.
A rise in the unemployment rate to 4.3% in July from 3.8% in March was one of the catalysts for the US central bank's unusually large half-percentage-point interest rate cut in September, the first reduction in borrowing costs since 2020.
The Fed's policy rate is now set in the 4.75%-5.00% range, having been hiked by 525 basis points in 2022 and 2023.
Though employers have pulled back on hiring, they are retaining their workers, underpinning wage gains and consumer spending.
Average hourly earnings rose 0.4% last month after gaining 0.3% in September. They were likely lifted by hourly paid workers dropping out of the payrolls calculation.
Wages increased 4.0% in the 12 months through October after advancing 3.9% in September.