The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

Saudi Arabia and Kuwait: closed-economy cousins

Middle East: Arab banks lay regional plans

Bahrain: diversifying away from oil

Oil lows hit UAE, Oman and Qatar


Saudi Arabia's population is growing at over 3% a year but GDP shrank slightly last year, and will at best grow by 1% this year. Growth above 2% is not expected until at best next year and more likely 2001.

The 1999 budget assumes a total expenditure of SR165 billion ($44 billion), 12.5% less than 1998's actual expenditures. Total domestic debt will climb to about $143 billion. As usual the government is shunning foreign lenders and intends to cover the shortfall with domestic borrowing. There has, however, been a persistent rumour of a $5 billion loan from Abu Dhabi. This has been denied by the Saudi finance ministry. Also the government in the past has not made a clear division between Saudi Aramco oil-company funds and government borrowing.

The government has so far managed to maintain a currency peg with the dollar, although the forex traders are circling. There has been only one sustained attack on the riyal, in August 1998.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree