King Abdullah announced on Friday a SR500 billion social spending package. As SR250 billion will be used to construct 500,000 homes, Al-Jasser said it would give a big boost to the housing market in the Kingdom.

While addressing the first session on the impact of global forces at the Jeddah Economic Forum (JEF) at the Jeddah Hilton on Sunday, Al-Jasser said that the G20, which includes Saudi Arabia and Turkey as active members, will add value to the GCC (Gulf Cooperation Council) nations and contribute to greater impact in the future in the GCC region.

“The G20 did not have any challenge until the recent recession took place which entered the world into the worst times in the history,” said Al-Jasser. He added that the main reason for the global economical crisis is the presence of world order imbalances. “There should be a multi directional system that includes the dollar, euro and the Chinese yuan that greatly influence the global economical system,” he added.

Al-Jasser emphasized on the credibility that the G20 managed to acquire while representing global complications. He pointed out that the Kingdom uses budget surpluses and financial resources to achieve economic development which generates opportunities to make the economy stronger and more durable.

Saudi Arabia’s economy is reasonably insulated from the regional turmoil and the central bank has seen no abnormal capital outflows.

Revolts have been sweeping through the Arab world since December, shaking Saudi Arabia’s neighbors Bahrain, Oman and Yemen, while raising debt insurance costs and pressuring markets across the Gulf.

While talking to reporters at the sidelines of the forum about the impact of the regional turmoil on the economy and capital flows, Al-Jasser said: “I think very little because simply, economically you have to look at what you are exporting and importing.”

“I have checked all the numbers and there has not been any noticeable outflows or abnormal outflows in Saudi Arabia during the past few weeks so it has been normal business,” Reuters quoted him as saying on Sunday.

Saudi five-year credit default swaps have eased from February highs, but still remain some 74 percent above levels seen in January before protests began in Egypt, Reuters said.

Saudi Arabia’s economy expanded by 3.8 percent in real terms last year.

“Saudi Arabia’s economy is on solid macroeconomic foundations and the government’s commitment in generating confidence and growth is undeniable. Despite the negativity in the wider region, Saudi Arabia was able to support the economy and society at large as a result of the recently announced measures which will help create more sustainable forces of growth,” John Sfakianakis, chief economist at Banque Saudi Fransi, said.

Kito De Boer, senior director of Mckinsey & Company, discussed the three primary causes that impact the global economy. They are called 3E’s — employment, education and entrepreneurship — he said.

Kaspar Villiger, chairmen UBS, talked about the global economic changes in the West and the continuous growth of the economic and financial regimes in the world. He discussed the increasing debt level that nations are witnessing and focused on the American budget deficit that has been using the Federal Reserve and would lead to upsurge in inflation in the near future. “The economic future of other European countries raises a lot of questions. One of them is whether the euro will disappear. I don’t think the European Union will dismantle as it is a political union that avoids conflicts among countries that have witnessed several wars during the last 100 years. The only solution for the EU to continue to exist is to establish a monetary union and restructure the European banking system,” he said.

He also discussed the situation of china that according to him “led a new kind of economy after the great recession period.”

Arif Naqiv, chairman of Abraj Capital, discussed the recent economic situation and how it is everyone’s responsibility to participate in finding solutions. He started his discussion by indicating the 400 percent increase in the gap between rich and poor countries. He shed light on the importance of small and medium enterprises (SMEs) that form 75 percent of the GCC economy but only contribute by 20 percent to over all GDP.

Arif indicated that “individual capabilities are the actual influencers on the economy and not the other way around, so as businessmen we ought to understand what provokes those individuals and not wait governments to take actions.”