The Saudi national economy is recovering from severe economic repercussions of the Covid-19 pandemic thanks to a set of fiscal and monetary policies adopted by the government, Saudi officials said on Monday.
They noted that the coming period would focus on deepening research to develop and activate Islamic finance within the framework of expanding the financial sector environment.
During the meetings of Saudi Euromoney Series, government officials said that the business activity for the public and private sectors had returned to normal according to the precautionary policies and health protocols.
They also stressed that the main indicators of the size of liquidity, credit, and consumption in the country showed positive signs of progress in the Saudi economic recovery from the effects of the pandemic.
Dr. Fahad Aldossari, Deputy Governor for Research and International Affairs at the Saudi Arabian Monetary Authority (SAMA), explained that the volume of liquidity in the banking system would support the economic recovery and ensure the continuity of loans, financing, and economic activities.
He added that the role of the state during the pandemic was essential in stimulating the resilience of the private sector, especially SMEs.
Aldossary added that the total support programs provided by SAMA to SMEs have exceeded the value of 50 billion riyals (USD 13.3 billion), which allowed companies to maintain their operations and their ability to pay the salaries of employees.
“Despite the positive indicators, it must be acknowledged that unless medicine is found to cure the Coronavirus, the situation will remain within the framework of uncertainty... But we now see that things are starting to recover, revitalize and return to normal,” he emphasized.
Aldossary went on to say: “We need more time for a full recovery, but there are signs and indicators that enhance the improvement of the GDP. Since last June, the consumption data, points of sale, confidence rate, in addition to the credit provided to the private sector, the size of liquidity, and that of the Central Bank’s assets have all increased.”
Faisal Al-Sharif, General Director of the Financial Sector Development Program at the Ministry of Finance, explained that the indicators of Saudi economic recovery were strengthened by the rate of electronic money transfers and the increase in the number of financial payment companies, stressing that the next stage would focus on the Islamic finance file.
Sharif noted that the Kingdom’s focus was not guided by regional or global models, but rather on ensuring the presence of complete infrastructure, a consolidated legislative system, and a work environment that fosters success.