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Saudi Arabia: Liquidity, Credit, and Consumption Herald New Economic Recovery

Saudi Arabia: Liquidity, Credit, and Consumption Herald New Economic Recovery
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Saudi Arabia: Liquidity, Credit, and Consumption Herald New Economic Recovery

Saudi Arabia: Liquidity, Credit, and Consumption Herald New Economic Recovery

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.

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Saudi Arabia Completes 90% of Arabian Shield Survey

Drilling and excavation work at a site in the Arabian Shield region, Saudi Arabia (SPA)
Drilling and excavation work at a site in the Arabian Shield region, Saudi Arabia (SPA)
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Saudi Arabia Completes 90% of Arabian Shield Survey

Drilling and excavation work at a site in the Arabian Shield region, Saudi Arabia (SPA)
Drilling and excavation work at a site in the Arabian Shield region, Saudi Arabia (SPA)

Saudi Arabia is advancing its exploration of mineral resources in the Arabian Shield, a region covering 630,000 square kilometers, about a third of the country.

The Kingdom has completed 90% of the survey and released geological data covering 400,000 square kilometers, or 65% of the total survey area.

Speaking to Asharq Al-Awsat, CEO of the Saudi Geological Survey Abdullah Al-Shamrani affirmed that this aims to attract investment in the mining sector.

The Arabian Shield is crucial for Saudi Arabia, as it contains key metallic minerals such as silver, gold, zinc, and copper.

The Arabian Shield runs along the Red Sea coast and the Gulf of Aqaba, from northern Jordan to the Saudi-Yemeni border. It covers regions such as Tabuk, Madinah, Makkah, Al-Baha, Asir, and Jazan, spanning 630,000 square kilometers, or about one-third of Saudi Arabia's land.

The geological survey in this area plays a key role in developing the sector, providing accurate data to attract both local and international investments.

This supports economic growth and helps diversify income sources in line with Saudi Arabia's Vision 2030.

In a statement to Asharq Al-Awsat at the fourth edition of the world’s leading platform on minerals, the Future Minerals Forum (FMF), Al-Shamrani revealed that a new batch of geological data covering 65% of the geophysical survey in the Arabian Shield was released.

This move opens up new opportunities for mining investors.

The project started in 2021, when the survey began collecting and analyzing data on the mineral wealth in the Arabian Shield.

After nine months of work, the database now covers 400,000 square kilometers, providing detailed information to guide investment decisions in mineral exploration, according to Al-Shamrani.

These data are not just technical but are driving increased demand for mining licenses, highlighting the value of accurate information in attracting investment.

Thanks to digital tools, investors worldwide can easily access this data, supporting investment in promising mining projects. With each new update, Saudi Arabia gets closer to completing the full survey of the Arabian Shield.

Al-Shamrani explained that the data includes interconnected layers of geophysical and geochemical information, such as analysis and drilling results. Each new update provides valuable insights for investors, helping them make data-driven decisions.

He also expected that the remaining data sets would be released soon, completing all work in the Arabian Shield.

Mustafa Maki, head of the National Geological Database Initiative at the Saudi Geological Survey, told Asharq Al-Awsat that the new coverage of the airborne geophysical survey includes magnetic and radiometric data, showing a 5% increase over previous periods.

Forty-three new squares have been added, bringing the total to 164 out of 252.

The data is now being processed and will soon be available to investors and visitors through the Saudi Geological Database.

The Saudi Geological Survey has launched new coverage for the surface geochemical survey of valley sediments, adding maps showing the distribution of individual elements and their statistical data.

This expansion covers an additional 20% of the previous area, bringing the total to 10 out of 50 geological squares.

The survey includes data on 57 out of 75 chemical elements, mapped to show their distribution in the squares. Statistical information on these elements has also been released, according to Maki.

Maki emphasized that geological data is crucial for the mining industry worldwide. Investors rely on this data to decide whether to proceed with investments or detailed exploration.

He added that the data from the Saudi Geological Survey, including geophysical and geochemical surveys, provides a strong knowledge base for investors.

This, along with technical reports and other geological data, helps investors make informed decisions about mining and exploration in the Arabian Shield.

Rana Zamai, Chair of the Women’s Empowerment Committee in Mining at the Ministry of Industry and Mineral Resources, confirmed to Asharq Al-Awsat that all necessary requirements for establishing the Women in Mining Association have been completed.

The association is expected to be launched on the upcoming International Women's Day.

Zamai highlighted that a special networking event was held at the FMF, bringing together women from the public and private sectors in mining from 80 countries.

The event was attended by five female leaders from major women’s mining organizations, representing countries like the UK, South Africa, Australia, and Türkiye.

She also pointed out that a key highlight this year was the participation of 25 geology students from King Abdulaziz University, the first group of its kind in Saudi Arabia. The students are expected to graduate in three to four years.