RIYADH, 28 November — Saudi Arabia’s balance of payments improved considerably during the past year with the current accounts surplus rising from SR1.5 billion in 1999 to SR53.7 billion in 2000.
This was disclosed by Hamad Al-Sayyari, governor of the Saudi Arabian Monetary Agency, while presenting the agency’s 37th annual report on Monday.
The SAMA report said the balance of payments rose by 8.3 percent of the gross domestic product (GDP). The report attributed the growth to a 57.9 percent rise in the Kingdom’s oil exports.
The value of Saudi oil exports last year stood at SR264.9 billion against SR167.8 billion in the previous year.
The non-oil exports were estimated at SR24.8 billion, up 13.9 percent from SR21.8 billion of 1999. SAMA expects a continued rise in the balance of payments this fiscal year.
Finance and National Economy Minister Dr. Ibrahim Al-Assaf, who presented the SAMA report to Custodian of the Two Holy Mosques King Fahd on Monday, said the gas accords signed with international oil companies this year will boost the economy.
The current stage of the gas initiative has resulted in specifying three pivotal projects to be carried out jointly by eight international companies with an initial investment of $25 billion.
"These projects will have far-reaching effects on the development of the Saudi economy. They will also supply clean energy to electricity, desalination and industrial plants," the minister said.
Al-Assaf said the Cabinet decision to publish economic and financial data, including those on national products, prices, government revenues and expenditures, external accounts and debts would pave way for increased transparency in government spending.
The minister highlighted the Kingdom’s position as a fast growing economy. Saudi Arabia is a member of the Group of 20, established in 1999. The group includes a number of emerging market economies in addition to major industrialized countries, such as the United States, Japan and some members of the European Union.
Commenting on the Kingdom’s economic performance during 2000, Al-Assaf said: "Riyal exchange rate, wholesale and retail price indices and consumer prices remained remarkably stable because of continued balance between domestic supply and demand."
He added that the formation of highly authorized councils, such as the Supreme Council for Petroleum and Mineral Affairs, the Supreme Economic Council, the Saudi Arabian General Investment Authority, and the Supreme Commission for Tourism will accelerate the country’s economic growth.
The SAMA report said market capitalization of shares rose by 11.4 percent, from SR229 billion in 1999 to SR255 billion in 2000. The number of shares traded went up by 5.1 percent from 528 million in 1999 to 555 million in 2000. The number of new companies registered by the Commerce Ministry during 2000 was 554, with a total capital of SR6.2 billion.
The number of industrial units operating in the Kingdom went up to reach 3,381, with a total capital investment of SR293.3 billion and more than 315,000 workers.
