SVB collapse highlights importance of supervision; Saudi regulatory framework ‘on right track’: WB exec

Ferid Belhaj, World Bank Vice President for Middle East and North Africa

Ferid Belhaj, World Bank (WB) Vice President for Middle East and North Africa, said the failure of Silicon Valley Bank (SVB) underlined the importance of capital market and banking supervision to interact with economic reality.

The massive social and economic reforms in the Kingdom are welcomed, being ongoing rapidly and efficiently for some years. This was directly reflected on investment inflows to the Kingdom and continued economic growth, Belhaj said, urging other countries in the region to follow suit of Saudi Arabia and adopt similar reforms.

Economic growth in the Kingdom reached high levels for two years. It recorded growth of 8% in 2022, Belhaj added, citing the WB’s forecasts for lower growth in the years to come, which is a watch factor. He also stressed the importance of economic diversification and openness to various sectors away from energy.