JEDDAH: Small and medium businesses in the Kingdom have not been affected by the ongoing international economic crisis, Saleh Al-Turki, chairman of the Council of Saudi Chambers of Commerce and Industry, announced yesterday.
Speaking at a press conference at the Jeddah Chamber of Commerce and Industry, he said large-scale companies involved in imports and exports had been affected by the crisis. Large companies, especially those relating to oil and petrochemicals, will feel world economic depression at a greater scale in 2009, he pointed out.
Al-Turki feared the problems could continue for up to four years if quick measures were not taken to contain the crisis.
He, however, downplayed the situation at stock markets in the Kingdom and other Gulf countries, saying it was caused by rumors and worries about global market developments.
“The Saudi economy is strong,” he said and urged authorities to take measures to allay such fears and concerns of investors.
He said a recent economic report received by the Council of Chambers showed that the Kingdom’s banking sector grew by 37 percent with deposits increasing by 22 percent. Profits of all banks grew this year by 4.2 percent, he added.
Al-Turki called for greater transparency in bank dealings.
“Saudi investments and bank deposits are not affected by the global crisis because of the strength of Saudi economy and the guarantees provided by the government and monitoring authorities to such deposits.”
He said the recent statement issued by Saudi Arabian Monetary Agency was not enough to end the stock market crisis.
“The situation demands a series of major steps in the light of the complaints made by many citizens who suffered big losses,” he said. “It remains a puzzle as this happened at a time when the Saudi economy is witnessing its golden age.”
He reiterated Saudi economy’s ability to withstand global crises.
“We have set out a number of proposals to stabilize the market that will be presented to authorities shortly,” he said.
Al-Turki hoped the government would soon pass the new real estate mortgage law, adding that it would benefit the middle class people. Official authorities want to protect the Kingdom’s real estate sector without being affected by world crisis.
He said the Kingdom and some other countries had benefited from depression in terms of cutting down inflation rates.
He said the time was not ripe for lifting the Saudi riyal’s linkage with the US dollar, adding that the Kingdom had benefited a lot from the peg.
“The Kingdom’s economy is dependent on oil by 88 percent and oil prices are calculated in US dollar. It is not advisable to de-peg the riyal from the dollar,” he said.