SAMA Governor expects continued recovery in growth, expansion in COVID-19 vaccination

Dr. Fahad A. Al-Mubarak, SAMA Governor

Fahad A. Al-Mubarak, Governor of Saudi Central Bank (SAMA) expected the continued recovery in growth with an expansion in COVID-19 vaccination coverage, in addition to easing the precautionary measures implemented in Saudi Arabia and the rest of the world, to be reflected on the global demand for oil, travel and tourism traffic, and other activities.

The Saudi economy has improved noticeably following the dwindle in COVID-19 pandemic, especially after opening the economic activities, supported generally by the growth of the non-oil sector and specifically by the private sector, Al-Mubarak said on the occasion of SAMA’s issuance of its 2020 report.

The results of the first quarter of 2021 indicate a speedy recovery in the economy, as the real non-oil GDP grew by 2.9%, the private sector by 4.4%, and the final consumption of the private sector by 1.3%. The national unemployment rate also improved, falling down to 11.7% from 12.6% during the fourth quarter of 2020.

As for micro, small and medium enterprises that remain impacted from the precautionary measures implemented to counter the pandemic, Al-Mubarak empathized that SAMA took several actions and launched a number of programs last year, and has done the same this year, to support SMEs and consequently promoting economic growth.

The Saudi economy witnessed numerous reforms that have helped shift the structure of the economy, moving it towards more diversification and enabling it to better leverage the relative advantages enjoyed by Saudi Arabia whether at the level of natural resources, geographical location, human capabilities, or the infrastructure including the technology infrastructure.

These reforms, alongside stimulus packages and unprecedented steps taken by the Saudi government have helped mitigate the impact of the COVID-19 pandemic on the Saudi economy. In addition to the foregoing, SAMA’s initiatives have also contributed to curbing the impacts of this pandemic, broadly on the private sector and particularly on small and medium enterprises (SMEs), Al-Mubarak concluded.