Kingdom of Saudi Arabia Saudi Arabian Monetary Agency Forty Fourth Annual Report 1429H (2008G) Research and Statistics Department SAUDI ARABIAN MONETARY AGENCY (SAMA) BOARD OF DIRECTORS 1. H.E. the Governor, Mr. Hamad Bin Saud Al-Sayari Chairman 2. H.E. the Vice Governor, Dr. Muhammad Bin Sulaiman Al-Jasser Vice Chairman 3. H.E. Mr. Abdulaziz Bin Zaid Al-Quraishi 4. H.E. Mr. Muhammad Obaid Bin Sa’eed Bin Zagar 5. H.E. Mr. Abdulaziz Bin Muhammad Al-Athel Saudi Arabian Monetary Agency — 44th Annual Report FOREWORD It gives me pleasure to present, on behalf of the Board of Directors, the Forty-Fourth Annual Report of the Saudi Arabian Monetary Agency. The Report reviews latest developments witnessed by the Saudi economy during fiscal year 1427/28H (2007) and during the first quarter of fiscal year 1428/29H (2008). The Report covers the various areas of the domestic economy, including monetary and banking developments, capital market, prices, public finance, national accounts, foreign trade and balance of payments in addition to other productive and serivcies sectors such as oil, industry, electricity, agriculture, water, transport, telecommunications and others. The Report mainly relies on official data which SAMA obtains from various Government ministries and departments and public sector enterprises, in addition to the host of the data compiled by SAMA itself. I would like to thank all ministries, departments and entities, whose names are indicated in all tables of the Report, for their cooperation in making available valuable information for the preparation of this Report. The Report gives full description of SAMA's functions such as conducting monetary policy and supervising commercial banks and cooperative insurance activity. The Report also includes the Auditors’ Report of SAMA's Final Accounts for the fiscal year ending on the 30th of June 2007, and SAMA’s initial balance sheet for the fiscal year ending on the 30th of June 2008. Finally, I wish to thank all SAMA's staff for the efforts they made for the preparation of this Report. Hamad Al-Sayari Governor Sha’ban 1429H August 2008G Saudi Arabian Monetary Agency — 44th Annual Report For correspondence and inquiries: Postal address: Saudi Arabian Monetary agency Research and Statistics Department P.O Box 2992, Riyadh 11169 Kingdom of Saudi Arabia Telephone: (966) 1-4662200 Facsimile: (966) 1-4662439 For the latest monetary and banking statistics published by the Saudi Arabian Monetary Agency, please visit SAMA’s website given below: http://www.sama.gov.sa Saudi Arabian Monetary Agency — 44th Annual Report SAMA HEADQUARTERS AND BRANCHES: Head Office Riyadh Branches Makkah Al-Madinah Riyadh Jeddah Al-Dammam Ta’if Buraydah Jazan Tabuk Abha Saudi Arabian Monetary Agency — 44th Annual Report Saudi Arabian Monetary Agency — 44th Annual Report CONTENTS Page World Economy ……………………………………………………………………………………………. 8 Saudi Economy …………………………………………………………………………………………….. 24 Monetary Developments………………………………………………………............................................. 42 Banking Sector………………………………………………………………................................................ 51 Supervision and Control of Commercial Banks and Insurance Activity……................................................ 67 Capital Market ……………………………………………………………………………………………… 80 Prices and Costs of Living …………………………………………………………………………………. 103 Public Finance ……………………………………………………………………………………………… 113 National Accounts and Sectoral Developments ……………………………………………………………. 123 External Sector ……………………………………………………………………………………………... 131 Petroleum and Mineral Resources …………………………………………….............................................. 149 Commerce and Industry ………………………………………………………............................................. 162 Tourism Sector ……………………………………………………………………………………………... 169 Water and Electricity ………………………………………………………….............................................. 179 Agriculture and Animal Husbandry ………………………………………………………………………... 188 Transport and Communications ……………………………………………………………………………. 197 Education, Health and Social Services …………………………………………………………………… 211 Population and Labour Force ………………………………………………………………………………. 224 Appendix of Statistical Tables ……………………………………………………………………………... 247 Saudi Arabian Monetary Agency — 44th Annual Report WORLD ECONOMY World economic Situation emerging economies has had a great role in increasing The world economy recorded a strong growth prices. during the first three quarters of 2007. However, the growth rate declined in the fourth quarter of 2007 due Economic Growth to difficulties experienced by the financial sector. Economic growth in advanced economies Consequently, the world growth rate decreased to 4.9 slowed down during 2007. This affected the overall percent in 2007 compared to 5.0 percent in 2006. growth rate of the world economy (in real terms), Economic growth in advanced economies witnessed a which declined from 5.0 percent in 2006 to 4.9 percent decline especially in the U.S.A., because of the sub- in 2007. The growth rate in advanced economies went prime mortgage crisis which effected American as well down from 3.0 percent to 2.7 percent (Table 1.1). as other international financial markets. However, Country-wise details indicate that the growth rate in the emerging and developing economies have so far been U.S.A. decreased from 2.9 percent in 2006 to 2.2 much less affected by the developments of the financial percent in 2007 and in the Euro area from 2.8 percent to markets in the industrial world, and they have 2.6 percent. The growth rates in Germany, France and maintained their fast growth pace under the leadership Italy declined from 2.9 percent, 2.0 percent and 1.8 of China. At the world level, inflation rates registered a percent in 2006 to 2.5 percent, 1.9 percent and 1.5 rise driven by continuous rise in prices of foodstuffs percent respectively in 2007. In the U.K., the growth and energy. Strong demand for basic goods from rate increased from 2.9 percent in 2006 to 3.1 percent in Table 1.1: WORLD REAL GDP GROWTH RATES (In percent) Projections 2001 2002 2003 2004 2005 2006 2007 2008 —— —–— —–— —–— —–—– ——– ——– ———— The World 2.2 2.8 3.6 4.9 4.4 5.0 4.9 3.7 Advanced economies 1.2 1.6 1.9 3.2 2.6 3.0 2.7 1.3 Major advanced economies 1.0 1.2 1.8 3.0 2.3 2.7 2.2 0.9 USA 0.8 1.6 2.5 3.6 3.1 2.9 2.2 0.5 Euro Area 1.9 0.9 0.8 2.1 1.6 2.8 2.6 1.4 Japan 0.2 0.3 1.4 2.7 1.9 2.4 2.1 1.4 Germany 1.2 0.0 -0.3 1.1 0.8 2.9 2.5 1.4 France 1.9 1.0 1.1 2.5 1.7 2.0 1.9 1.4 Italy 1.8 0.5 0.0 1.5 0.6 1.8 1.5 0.3 U.K. 2.4 2.1 2.8 3.3 1.8 2.9 3.1 1.6 Canada 1.8 2.9 1.9 3.1 3.1 2.8 2.7 1.3 Other advanced economies 1.7 3.2 2.5 4.1 3.2 3.8 3.9 2.5 European Union 2.1 1.4 1.5 2.7 2.1 3.3 3.1 1.8 New industrial Asian economies 1.2 5.5 3.2 5.9 4.8 5.6 5.6 4.0 Emerging markets and developing countries 3.8 4.7 6.2 7.5 7.1 7.8 7.9 6.7 Africa 4.9 6.1 5.3 6.5 5.7 5.9 6.2 6.3 Asian developing countries 5.8 6.9 8.1 8.6 9.0 9.6 9.7 8.2 China 8.3 9.1 10.0 10.1 10.4 11.1 11.4 9.3 India 3.9 4.6 6.9 7.9 9.1 9.7 9.2 7.9 Middle East 3.0 3.9 6.9 5.9 5.7 5.8 5.8 6.1 Middle & Eastern European Countries 0.4 4.2 4.8 6.9 6.1 6.6 5.8 4.4 Western Hemisphere 0.7 0.4 2.1 6.2 4.6 5.5 5.6 4.4 Brazil 1.3 2.7 1.1 5.7 3.2 3.8 5.4 4.8 Commonwealth of Independent States 6.1 5.2 7.8 8.2 6.5 8.2 8.5 7.0 5.1 4.7 7.3 7.2 6.4 7.4 8.1 6.8 Russia Source: IMF, World Economic Outlook, April, 2008. World Economy 8 Saudi Arabian Monetary Agency — 44th Annual Report Percent Chart 1.1: World Real GDP Growth Rates 9 8 7 6 5 4 3 2 1 0 2003 2004 2005 2006 2007 2008 Estimate Advanced Economies Other Advanced Economies Newly Industrialized Asian Economies Euro Area Emerging Market and Developing Countries Commonwealth of Independent States 2007, while the growth rate in Japan decreased from 2.4 rate in the Euro area went down from 2.2 percent to 2.1 percent to 2.1 percent. The growth rate in the new percent while it went up in the new Asian industrial industrial Asian economies remained unchanged at 5.6 economies from 1.6 percent to 2.2 percent. In percent. The growth rate in developing countries and developing countries and emerging economies, the emerging economies went up from 7.8 percent to 7.9 inflation rate increased from 5.4 percent in 2006 to 6.4 percent. The growth rate in China increased from 11.1 percent in 2007. In the Asian developing countries, it percent in 2006 to 11.4 percent in 2007, while the went up from 4.1 percent to 5.3 percent and in growth rate in India declined from 9.7 percent to 9.2 Commonwealth of Independent States (countries of percent. The growth rate in the Middle East countries former Soviet Union) from 9.5 percent in 2006 to 9.7 remained unchanged at 5.8 percent. The growth rate in percent in 2007 (Table1.2). African countries increased from 5.9 percent in 2006 to 6.2 percent in 2007. The growth rate in the Western Based on preliminary projections for 2008, Hemisphere went up from 5.5 percent to 5.6 percent inflation rates are expected to go up in most regions of and in Commonwealth of Independent States from 8.2 the world. In advanced economies, the inflation rate is percent to 8.5 percent. However, the growth rate in the expected to increase from 2.2 percent in 2007 to 2.6 Middle and Eastern European countries decreased from percent in 2008. In the Euro area, it is projected to go 6.6 percent in 2006 to 5.8 percent in 2007. up from 2.1 percent to 2.8 percent and in the new Asian industrial economies from 2.2 percent to 3.0 percent. In Preliminary projections for 2008 indicate that developing countries and emerging economies, the world growth rate will continue to decline to 3.7 inflation rate is expected to rise from 6.4 percent in percent. In advanced economies, the growth rate is 2007 to 7.4 percent in 2008. It is expected to go up in expected to come down from 2.7 percent in 2007 to 1.3 the Asian developing countries from 5.3 percent to 5.9 percent in 2008. The growth rate in the U.S.A. is percent and in Commonwealth of Independent States expected to decrease from 2.2 percent to 0.5 percent from 9.7 percent to 13.1 percent. Chart 1.2 shows and in the Euro area from 2.6 percent to 1.4 percent. In inflation rates in selected groups of countries during the the new Asian industrial economies, it is expected to period 2003-2008. Inflation rates are expected to go up fall from 5.6 percent to 4.0 percent. In developing in all groups of countries in 2008. countries and emerging economies, the growth rates are expected to decrease from 7.9 percent in 2007 to 6.7 Unemployment percent in 2008. Chart 1.1 shows the world real GDP Unemployment rates in most of the world growth rates during the period 2003-2008. It shows that economies went down during 2007. In advanced growth rates for 2008 are expected to go down in all economies, the unemployment rate declined from 5.7 groups of countries. percent in 2006 to 5.4 percent in 2007. In the U.S.A., the rate remained unchanged at 4.6 percent. In the Euro Inflation area, it went down from 8.2 percent to 7.4 percent, as it In advanced economies, inflation rates measured was down in Germany, France, and Italy from 9.8 by change in consumer price indices declined from 2.4 percent, 9.2 percent, and 6.8 percent in 2006 to 8.4 percent in 2006 to 2.2 percent in 2007. The inflation percent, 8.3 percent and 6.0 percent respectively in World Economy 9 Saudi Arabian Monetary Agency — 44th Annual Report Table 1.2: MAJOR DEVELOPMENTS IN THE WORLD ECONOMY (Percent) Projections 2006 2007 2008 ——– ——– ————— Economic Growth World 5.0 4.9 3.7 Major advanced economies 3.0 2.7 1.3 Euro area 2.8 2.6 1.4 Other advanced economies 3.8 3.9 2.5 New industrial Asian economies 5.6 5.6 4.0 Emerging Markets and Developing Countries 7.8 7.9 6.7 Commonwealth of Independent States 8.2 8.5 7.0 CPI Major advanced economies 2.4 2.2 2.6 Euro area 2.2 2.1 2.8 New industrial Asian economies 1.6 2.2 3.0 Emerging Markets and Developing Countries 5.4 6.4 7.4 Developing Asian countries 4.1 5.3 5.9 Commonwealth of Independent States 9.5 9.7 13.1 LIBOR(1) U.S. Dollar deposits 5.3 5.3 3.1 Japanese Yen deposits 0.4 0.9 1.0 Euro deposits 3.1 4.3 4.0 Unemployment rates Major advanced economies 5.7 5.4 5.6 Euro area 8.2 7.4 7.3 New industrial Asian economies 3.7 3.4 3.3 Government fiscal deficit(2) Major advanced economies -1.6 -1.2 -2.2 New industrial Asian economies 1.9 3.3 1.8 Emerging Markets and Developing countries (weighted average) 0.4 0.4 -0.2 Growth rate of world trade (goods and services ) 9.2 6.8 5.6 Exports Advanced economies 8.2 5.8 4.5 Emerging Markets and Developing countries (weighed average ) 10.9 8.9 7.1 New industrial Asian economies 10.9 8.7 6.2 Imports Advanced economies 7.4 4.2 3.1 Emerging Market and Developing countries 14.4 12.8 11.8 New Industrial Asian Economies 9.5 8.6 7.0 Current Account(3) Advanced economies -1.5 -1.2 -1.1 USA -6.2 -5.3 -4.3 Euro area -0.1 -0.2 -0.7 Japan 3.9 4.9 4.0 Germany 5.0 5.6 5.2 France -1.3 -1.3 -2.4 Italy -2.6 -2.2 -2.4 U.K. -3.9 -4.9 -4.8 Canada 1.6 0.9 -0.9 New industrial Asian economies 5.2 6.0 4.5 Foreign Exchange Reserves (Billion SDR) Industrial countries 958.9 972.8 Developing countries 2425.2 3083.1 Net Private Capital Flows to Emerging Economies (billion $) 231.9 605.0 330.7 Average Prices of Oil (U.S$ per barrel)(4) 20.5 10.7 34.3 Arabian Light(5) 50.2 61.1 50.7 (1) Six-month rate for each USA and Japan and three-month rate for Euro Zone. (2) Ratio of deficit/surplus to GDP. (3) Ratio of surplus/deficit to GDP. (4) Percentage of annual change of simple average of spot prices of Brent, Dubai and West Texas Intermediate crude oil. (5) OPEC data. Source: IMF, World Economic Outlook, April, 2008 World Economy 10 Saudi Arabian Monetary Agency — 44th Annual Report
Description: