Saudi economy can weather oil price declines: Cbank governor

Saudi Arabia’s economy will weather declines in oil prices over the medium-term as it continues to show signs of growth, Fahad Al-Mubarak, governor of the Saudi Arabian Monetary Agency, the kingdom’s central bank, said in an interview with Oxford Business Group.

The country's efforts to shore up its financial sector are on the right track, he said, in light of the non-banking sector growth, and improved resource mobilization.

Al-Mubarak added that the June 15 opening of the Saudi Stock Exchange (Tadawul) to qualified foreign institutional investors (QFIs) will be another milestone achievement under the government’s strategy of financial inclusion and diversification.

The financial sector’s total market capitalization logged a compound annual growth rate (CAGR) of ten percent to $467.5 billion from 2009 to 2013, according to central bank estimates.

The number of listed companies rose from 135 to 163 in the same period. Saudi banks' combined assets showed a CAGR of 8.4 percent over the same period.

Recent efforts were also said to be aimed at facilitating debt issuance and settlement procedures to promote the corporate bonds and the Sukuk market.

The government budget for 2015 has allocated a record projected spending amount of $229.3 billion, of which 51.2 percent will be invested in health, education, and infrastructure development projects.