Fahad Al-Mubarak, Governor of SAMA
Saudi Arabia's monetary conditions are reassuring, thanks to its prudent monetary policy, said Fahd Al-Mubarak, Governor of the Saudi Central Bank (SAMA).
On the occasion of announcing the 2022 budget, the governor said the banking sector has strong financial safety indicators, which signals its ability to face the current challenges.
He added that the central bank will immediately provide the necessary support to achieve financial and monetary stability, when needed, through the available instruments, as per the monetary policy system and local liquidity management.
Despite the exceptional conditions arising from the COVID-19 pandemic, the Saudi economy proved its ability to withstand crises. This is due to several reasons, mainly the rapid response from the government, the central bank and other entities by providing stimulus packages and taking the necessary decisions.
Some measures were taken for business continuity in the sectors supervised by SAMA, to ensure that such sectors are not affected by the repercussions or risks that may weigh on their financial stability, Al-Mubarak said.
He pointed out that the central bank continues to develop the insurance sector's structure through enhancing the financial positions of the companies, which consider mergers and acquisitions as one of their enablers.
As regards the corporate finance sector, the governor said it achieved positive growth indicators, as the number of licensed companies reached 44 by the end of the third quarter of 2021.
Commenting on the management of foreign assets, Al-Mubarak said the central bank continued its approach based on balanced investment policies, use of topnotch technologies, and adoption of the international best practices in the fields of asset management and measurement of performance and risk. This, accordingly, contributed to strengthening SAMA's financial position.
SAMA's reserve assets grew by 3% month-on-month in November 2021 to reach SAR 1.741 trillion, the governor concluded.
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