SAMA: Non-oil Sector Contribution in GDP Likely to Rise

Ahmed al-Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA). Reuters
Ahmed al-Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA). Reuters
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SAMA: Non-oil Sector Contribution in GDP Likely to Rise

Ahmed al-Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA). Reuters
Ahmed al-Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA). Reuters

Saudi Arabia has expressed complete confidence in the non-oil sector to increase contribution in the GDP during the coming months, at a time when Saudi Arabian Monetary Agency (SAMA) is considering new applications of two foreign banks that have shown interest in entering the local market via opening branches for them.

During a dialogue session on Thursday in Riyadh, a number of central bank governors stressed during their participation in Future Investment Initiative the danger of digital currencies.

Governors of central banks in Saudi Arabia, Kuwait, Bahrain and Jordan highlighted the importance of international efforts to organize digital currencies.

Ahmed al-Kholifey, governor of SAMA, said that since the drop in oil prices mid of 2014 Saudi Arabia has been focusing on economic diversification. He also lauded announcements made at the Future Investment Initiative. Kholifey noted that most of the announced projects are giant ones.

"These projects support and urge the private sector and its growth sources. Given the statistics of the first half of current year, there is a drop in growth attributed to the oil sector and not others," he added.

The non-oil sector, especially the private sector, represent a 38 percent of GDP, stated Kholifey. “Economic reforms of privatization and structural change will contribute positively in increasing this percentage,” he assured.

Kholifey saw that NEOM or other launched projects need a strong banking sector and insurance sector.

Kuwait Central Bank Governor Mohammad al-Hashel declared that the Kuwaiti economy faced unbalance in structure but worked on fixing it.

Bahrain Central Bank Governor Rasheed al-Maraj said that work on the Gulf monetary federation has been suspended recently. Jordan’s Central Bank Governor Zaid Fariz stated that the growth of Jordanian economy was slow during the past years.



Report: US Ready to Reopen Oil Stockpile if Petrol Prices Surge Again

FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo
FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo
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Report: US Ready to Reopen Oil Stockpile if Petrol Prices Surge Again

FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo
FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo

The Biden administration is ready to release more oil from the US strategic stockpile to stop any jump in petrol prices this summer, the Financial Times reported on Monday.

Senior Biden adviser Amos Hochstein told the newspaper that oil prices are "still too high for many Americans” and he would like to see them “cut down a little bit further.”

Hochstein, speaking to the FT said that the US would "continue to purchase into next year, until we think that the Strategic Petroleum Reserve (SPR) has the volume that it needs again to serve its original purpose of energy security."

The Energy Department this year has been buying about 3 million barrels of oil per month for the SPR after selling 180 million barrels in 2022 following Russia's invasion of Ukraine. The move was an effort to curb gasoline prices that spiked to more than $5.00 a gallon, but it also reduced the reserve to its lowest level in 40 years.

Earlier this month, Energy Secretary Jennifer Granholm told Reuters that the US could hasten the rate of replenishing the SPR as maintenance on the stockpile is completed by the end of the year.