JEDDAH, 1 January — Pragmatic economic policies followed by the Custodian of the Two Holy Mosques King Fahd were the major contributing factor that kept the Saudi riyal stable amid numerous global upheavals during the past two decades, Hamad Al-Sayyari, governor of Saudi Arabian Monetary Agnecy, said yesterday.
Speaking at a seminar on the monetary system and banking services during the reign of King Fahd, Al-Sayyari said the Kingdom’s liquidity rose from SR134 billion in 1982 to SR328 billion in November 2001 while the liabilities of private banks grew from SR50 billion in 1982 to SR185 billion during the same period.
He said the total bank assets rose from SR138 billion in 1982 to SR474 billion in 2001.
The banks’ capital grew from SR8.5 billion to SR44 billion and the deposits from SR99 billion to SR280 billion during the same period.
Al-Sayyari noted that the rate of inflation in the period was kept below one percent. SAMA’s supervisory and monitoring role over the commercial banks led to the establishment of a strong banking system in the country.
With 1,200 automatic teller machines installed throughout the Kingdom, people have become accustomed to not carrying liquid cash. The SAMA also established a successful mechanism of speed cash transfers to any part of the world, he added.
The research and data center at SAMA has been able to contribute to the Saudization of the local banks by training Saudi youths. More than 2,700 youths were trained in the year 2000 alone, he said.
The measures implemented by SAMA have had some positive effects on the economy and helped to ease the unemployment.
The precautionary security measures undertaken in the banking and financial sector by the authorities do not violate the freedom or rights of either Saudi or expatriate account holders.
SAMA, which is continuing its campaign against terrorist financing and money laundering, has been continuing the monitoring of bank accounts to counter links with terrorist activities.
The monitoring includes scrutinizing suspicious accounts and the movement of money locally and internationally.
SAMA has warned all financial, investment and insurance establishments in the Kingdom to make certain the identity of the people with whom it deals, particularly when money is remitted abroad. These financial establishments should not maintain dealings with agencies or persons or establishments operating in a suspicious manner.
