SAMA governor confident of Saudi Arabia's financial sector stability

Ahmed Alkholifey, Governor of Saudi Arabian Monetary Authority (SAMA), said that he is confident of the Saudi financial sector’s stability.

Lower oil prices and the coronavirus pandemic have weighed on the Kingdom’s economic growth, however, various monetary and precautionary measures were adopted to face the COVID-19 crisis, Alkholifey said at the virtual Euromoney conference on Wednesday.

Among the measures enforced in response to the challenges arising out of the pandemic, the central bank has directed banks to support establishments and enterprises to help them overcome the COVID-19 impact through several initiatives and injected liquidity. 

“We had a bullish outlook for the beginning of 2020 and expected to maintain solid growth. However, after the emergence of COVID-19 crisis, we ended Q1 2020 with a 1% decline,” Alkholifey said.  

Elsewhere, the governor reaffirmed the Kingdom’s commitment to the dollar peg, explaining that the peg is a key element for financial stability in Saudi Arabia.

Moreover, Alkholifey said the Financial Sector Development Program (FSDP) includes 16 initiatives, of which 90% were complete.