E-Media:
Riyadh - Minister of Finance Dr. Ibrahim bin Abdulaziz Al-a'ssaf stressed that the current crisis mainly is a crisis of confidence, and it is no secret that sound policies contribute to raising the level of confidence.
During the opening of Euromoney Saudi Arabia conference 2009 ,he pointed out the G20 and the IMF affirmed that the key to solving the crisis is to deal boldly with toxic assets and bank liquidity fears. International efforts must be consolidated and policies must be coordinated in order to produce the desired effects. No country is isolated from the adverse effects of this crisis, but the impact on Saudi Arabia - as we emphasized in the past - has been limited, thanks to the sound economic policies adopted by the government in past years.
Minister of Finance explained that the 2009 budget includes a 36 per cent increase in investment spending. The value of project contracts approved by the Ministry of Finance during the first quarter of this year (2009) amounted to forty billion and six million Saudi Riyals compared to around twenty billion riyals the same period of preceding year (2007) a growth of around 103 per cent. Net financing provided by government specialized credit institutions amounted to around twenty billion riyals compared to around 9.5 billion riyals in 2007, a growth of around 110 percent.
He added that the global economy is suffering from low levels of confidence and demand, but it is hoped that the stimulus packages adopted by numerous countries will help to restore confidence and spur economic growth.
No doubt you have followed the international efforts made to confront the crisis, most notably the decisions taken at the two G20 summits held in November 2008 in Washington and early last month in London, in which Saudi Arabia played an active role. The G20 countries adopted a number of measures and policies aimed at restoring confidence and economic growth.
Then, Governor of the Saudi Monetary Agency Dr. Mohammad Al-Jasser delivered a speech in which he highlighted Saudi Arabia's role in and contributions to the world economic system and its experience in taking various measures to confront economic developments at the local level.
He said that Saudi Arabia adopts an open economic policy despite its great dependence on oil. He added that Saudi Arabia support world economy's stability through its oil policy meeting world oil demand and seeking stable oil prices.
The governor reviewed the local financial policy and system in Saudi Arabia stating that the Saudi government paid most of the government debt.
The governor highlighted the monetary policy and the role of the Saudi Monetary Agency in securing a financial environment of stable prices in the kingdom and provided a brief explanation of the financial organization and stability.