ANNUALANNUAL REPORT REPORT1441H-2020 1441H-2020
Saudi Arabian Monetary Authority
56th Annual Report 1441H (2020)
BOARD OF DIRECTORS SAMA
1.The Governor, Dr. Ahmed A. Alkholifey Chairman
2. The Vice Governor, Ayman M. Al-Sayari Vice Chairman
3. Mr. Hamad S. Al-Sayari
4. Mr. Abdulaziz M. Al-Athel
5. Mr. Khaled A. Al-Juffali
4 Ahmed A. AlKholifey It gives me pleasure to present, in the name of Governor and Chairman the Board of Directors, the 56th Annual Report of the Saudi Arabian Monetary Authority, which reviews the latest developments in the Saudi Ramadan 1441H economy during fiscal year 1440/41H (2019). May 2020 The Report covers developments in various areas of the domestic economy, including monetary developments, banking activity, capital market, prices, public finance, national accounts, foreign trade and balance of payments. It also provides an overview of the latest economic developments in various domestic productive sectors, apart from giving a full description of SAMA’s functions, such as setting and managing monetary policy and supervising banking, insurance and finance sectors. In addition, the Report includes the auditors’ report on SAMA’s balance sheet for fiscal year ended on June 30th, 2019. In addition to data issued by SAMA, the Report mainly relies on official data obtained from ministries, government departments and public entities, to which I would like to extend my sincere thanks for their cooperation in providing valuable information and data that enabled SAMA to prepare this Report. I also would like to thank all SAMA’s staff for their efforts in preparing this Report and in carrying out all functions entrusted to SAMA.
5 For correspondence and inquiries: SAMA Head Office and Branches:
Postal address: Head Office Saudi Arabian Monetary Authority Riyadh Economic Research Department P.O. Box 2992, Riyadh 11169 Branches: Kingdom of Saudi Arabia Makkah Madinah Telephone: (+966) 11 - 4633000 Riyadh Email: [email protected] Jeddah Dammam For the latest reports, monetary and banking statistics, Ta’if quarterly balance of payments estimates and instructions Buraydah issued to financial institutions supervised by SAMA, please Jazan visit SAMA’s website Tabuk http://www.sama.gov.sa Abha
6 CONTENTS
01 Global Economy 8
02 Saudi Economy 25
03 Energy, Industry and Mineral Resources 44
04 Monetary Developments 55
05 Banking Sector 63
06 Insurance and Finance 79
07 Consumer Price Index 91
08 Capital Market 97
09 External Sector 113
10 Public Finance 127
11 National Accounts and Sectoral Development 133
12 SAMA Achievements and Aspirations 140
13 SAMA Balance Sheet 159
7
GLOBAL ECONOMY 10 Saudi Arabian Monetary Authority | 56th Annual Report forecast reflects persistent social distancing and greater damage to global supply chains. supply global to damage greater and distancing persistent social forecastreflects anticipated than activity on impact that and the recovery is projected be to than gradual previously forecast. slower The recovery updated the in negative more a had has pandemic COVID-19 the that from stemmed projections updated IMF forecast.The WEO 2020 April the below points 1 the Caribbean and America Latin year. preceding the in percent 3.2 to compared 2019 in percent developing and Europe registered adecreased growth rate2.1 of Emerging 2019. in percent to 0.3 2018 in percent 1.0 from declined countries MENA the in rate growth the Furthermore, 2018. 2018 in percent toIndia in and 4.2percent 6.7 from 6.1percent in from 2019 in percent to 6.1 decreased China in rate growth The 2019. in percent 3.7 to 2018 in percent 4.5 from declined developingeconomies, the overall growth rate the precedingin year. Inemerging market and respectively,percent, to1.7 0.8 and percent 1.5 percent, compared 2019 in respectively, percent, 0.3 and percent 0.6 percent, 1.3 of rates growth France, Germany and Italy recorded decreased year.preceding the in percent 1.9 against 2019 in The euro area growth rate decreased to 1.2percent year.preceding the in percent 2.9 of growth a to growth slowed to 2.3 percent in 2019, as compared the Unitedin declines Statesthe euro and area. US slowdown stemmed primarily from the growth rate The 2018. in percent 2.2 versus 2019 in percent Growth intheadvanced economiesslowed to 1.7 Economic Growth contract by 3.0percent in2020 Outlook (WEO), the global economy is projected to Economic World IMF 2020 April the to According rate of 2.9 percent compared to 3.6 percent growth in 2018. a registered economy global the 2019, In World Economic Situation Global Economy
According to the June 2020 IMF World Economic Outlook (WEO) Update, global growth is projected at -4.9 percent in 2020, 1.9 percentage 1.9 2020, in percent -4.9 at projected is growth global Update, (WEO) Outlook EconomicWorld IMF 2020 June the to According 1 . groups over the2016-2020period. country and countries major the in rates growth GDP real the shows 1-1 Chart 1-1). (Table 2020 in percent 1.2 to drop to expected is growth China’s 2020. in percent 1.0 by economies developing and economy by 7.5percent,emerging and market euro-areapercent,the 5.9 contractexpectedtoby contract by 6.1 percent in 2020. The US economy is to expected are economies advanced The in 2019. percent 2.9 of rate growth a pandemic, to compared COVID-19 as the by triggered 2020, in global percent 3.0 the by contract to WEO, projected is 2020 economy April the to According percent in2018. increasedan growthrate percent0.7 of against 0.3 recorded also Japan 2019. in percent 1.4 to 2018 the U.K.of slightly increased from 1.3percent in rate growth the contrast, In 2018. in percent 6.3 to compared 2019 in percent 5.5 to declined Asia overallgrowth rate emergingin developing and 0.1 percent in 2019 versus 1.1 percent in 2018. The countries registered also a decreased growth of during 2018-2020. consumerin prices for variouscountry groups (Table 1-2). Chart 1-2 shows 2019 the percentage change in percent 5.0 to 2018 in percent 4.8 from rose rate inflation the countries, developing and preceding year. However,the emerging in market the in percent 11.0 to compared 2019 in percent 9.0 to decreased also rate the countries, MENA the In 2018. in percent 1.8 from 2019 in percent in 2018. In the euro area, the rate decreased to 1.2 rate percent 2.4 from 2019 in percent 1.8 inflation to decreased the States, United the In 2018. in percent 2.0 from inflation 2019 in percent average1.4 to dropped economies, advanced the In Inflation
Unemployment Chart 1-3 shows average unemployment rates for The weighted average unemployment rate selected groups of countries during 2017-2020. in advanced economies decreased from 7.1 Global Economy percent in 2018 to 6.6 percent in 2019. In the Fiscal Balances in Advanced Economies United States, unemployment also went down The overall fiscal deficit in advanced economies to 3.7 percent in 2019 from 3.9 percent in 2018. rose to 3.0 percent of GDP in 2019, from 2.6 In the euro area, it decreased from 8.2 percent percent in 2018. The United States deficit in 2018 to 7.6 percent in 2019. Additionally, increased from 5.7 percent in 2018 to 5.8 percent the unemployment rate in Italy, France and in 2019. The deficit in the euro area increased Germany declined slightly to 10.0 percent, 8.5 from 0.5 percent in 2018 to 0.7 percent in 2019. percent and 3.2 percent, respectively, in 2019 In France, it increased from 2.3 percent to 3.0 compared to 10.6 percent, 9.0 percent and 3.4 percent. The fiscal deficit in Japan also rose from percent, respectively, in 2018. Moreover, the 2.4 percent to 2.8 percent in 2019. On the other unemployment rate in the United Kingdom fell hand, the surplus in Germany decreased from 1.9 to 3.8 percent versus 4.1 percent in 2018. On percent in 2018 to 1.4 percent in 2019. In Italy, the the other hand, unemployment rate in Japan deficit declined from 2.2 percent to 1.6 percent. In remained unchanged at 2.4 percent (Table 1-3). the United Kingdom, the deficit went down from 2.2 percent to 2.1 percent in 2019 (Table 1-4).
Table 1-1: Real GDP Growth Rates
(Percentage)
Projections 2013 2014 2015 2016 2017 2018 2019 2020
World 3.5 3.6 3.5 3.4 3.9 3.6 2.9 -3.0
Advanced Economies 1.4 2.1 2.3 1.7 2.5 2.2 1.7 -6.1
USA 1.8 2.5 2.9 1.6 2.4 2.9 2.3 -5.9
Euro area -0.2 1.4 2.1 1.9 2.5 1.9 1.2 -7.5
Germany 0.4 2.2 1.7 2.2 2.5 1.5 0.6 -7.0
France 0.6 1.0 1.1 1.1 2.3 1.7 1.3 -7.2
Italy -1.8 -0.01 0.8 1.3 1.7 0.8 0.3 -9.1
Japan 2.0 0.4 1.2 0.5 2.2 0.3 0.7 -5.2
UK 2.1 2.6 2.4 1.9 1.9 1.3 1.4 -6.5
Canada 2.3 2.9 0.7 1.0 3.2 2.0 1.6 -6.2
Emerging and Developing Economies 5.1 4.7 4.3 4.6 4.8 4.5 3.7 -1.0
Sub-Saharan Africa 5.2 5.1 3.2 1.4 3.0 3.3 3.1 -1.6
Emerging and Developing Asia 6.9 6.8 6.8 6.8 6.7 6.3 5.5 1.0
China 7.8 7.3 6.9 6.8 6.9 6.7 6.1 1.2
India 6.4 7.4 8.0 8.3 7.0 6.1 4.2 1.9
Middle East and North Africa 2.5 2.7 2.4 5.5 1.7 1.0 0.3 -3.3
Emerging and Developing Europe 3.1 1.9 0.9 1.8 4.0 3.2 2.1 -5.2
Latin America and the Caribbean 2.9 1.3 0.3 -0.6 1.3 1.1 0.1 -5.2
Brazil 3.0 0.5 -3.6 -3.3 1.3 1.3 1.1 -5.3
Commonwealth of Independent States 3.7 2.5 1.0 -1.9 0.8 2.4 -- --
Russia 1.8 0.7 -2.0 0.3 1.8 2.5 1.3 -5.5 Source: World Economic Outlook (WEO), IMF, April 2020.
11 12 Saudi Arabian Monetary Authority | 56th Annual Report n te owga koe ih .7 ecn. On percent. 1.57 with krone Norwegian the and end of 2019, followed by the euro with 2.20 percent the Brazilian real withadrop of3.43percent at the highest declines against the U.S. dollarincluded points. However, the currencies that recorded the in general andtheFed decreasing rates by 25basis the end of 2019 due to the weakened U.S. economy at currencies major some against rates exchange bilateral weak relatively recorded dollar U.S. The Exchange Rates drop to -0.1in2020(Table 1-2). LIBOR remained at zero in 2019 and is projected to yen The 2020. in unchanged remain to projected is it and 2018, in percent -0.3 to compared 2019 of end the at percent -0.4 to declined LIBOR euro three-month The 2020. in percent 0.7 to fall to projected is and 2018 in percent 2.5 against 2019 six-monthThe dollarLIBORstood at 2.3percent in Interest Rates Monetary andFinancialDevelopments
Percent Percent 10 12 -8 -6 -4 -2 Chart 1-2:Percentage Change inConsumerPricesSelected Groups ofCountries Chart 1-1:World Real GDPGrowth Rates 2 4 6 8 0 0 2 4 6 8 Advanced Economies
2016 Advanced Economies 2018 Emerging MarketandDeveloping Countries 2017 Middle EastandNorthAfrica 2018 the New Zealand dollarwith0.31percent. and percent 1.01 with yen Japanese the percent, 3.80 with peso Mexican the by followed percent, 5.03 of rise a with dollar Canadian the included largest increases invalue against theU.S. dollar the otherhand, thecurrencies that recorded the o ls a 1741 uig 09 Hwvr in However, 2019. during 1,784.1 at close to percent 20.20 by rose Euro) (MSCI Index Europe Similarly, the Morgan Stanley Capital International- economies. the easingoftrade tensions between advanced notably most factors, several to attributed was performance strong This 2019. during 21,697.23 at close topercent 18.20 by up wentindex NIKKEI Japanese The 2019. percent, during 26,379.50 5.29 at closing of increase (DJIA) an Average registered Industrial index Jones Dow U.S. The Equity Markets Equity andBond Markets 2019
Emerging MarketandDeveloping Countries Middle EastandNorthAfrica 2019 2020 (projections) 2020 (projections)
China the United Kingdom, the Financial Times Stock JGB 30-year yield dropped to 0.41 percent, 20- Exchange 100 Index (FTSE 100 Index) declined by year yield to 0.27 percent, 10-year yield to -0.022
1.17 percent to 7,276.48. percent, 7-year yield to 0.109 percent, 5-year yield Global Economy to 0.128 percent, two-year yield to 1.27 percent, Bond Markets and 3-month yield to -0.100 percent. Yields on U.S. treasury bonds of all maturities declined at the end of 2019, with the 2-year bond In the euro area, all government bond yields of all yield falling to 1.56 percent, the 5-year yield to maturities declined at the end of 2019, with the 1.68 percent, the 7-year yield to 1.82 percent, and 5-year yield recording the highest decline to -0.463 the 10-year yield to 1.92 percent. The decreases percent, followed by the 10-year yield falling to in yields on medium- and long-term bonds were -0.187 percent and then the 15-year yield to -0.039 attributed to the supply and demand for bonds percent. These decreases at the end of 2019 were in conjunction with the slowdown of the global attributed to the protests in France and companies’ economy and the preference of a large percentage declining trust in the euro economy. of investors for safe investments. In the United Kingdom, government bond yields of Yields on Japanese government bonds (JGB) of all all maturities declined at the end of 2019. The 10- maturities also declined at the end of 2019. The year yield recorded the highest decline, reaching
Table 1-2: Inflation and Interest Rates
(Percentage) Projections 2018 2019 2020 Global inflation
Advanced economies 2.0 1.4 0.5
USA 2.4 1.8 0.6
Euro area 1.8 1.2 0.2
Emerging and Developing Economies 4.8 5.0 4.6
Middle East and North Africa 11.0 9.0 8.2
London interbank offered rate (LIBOR)*
U.S. dollar deposits 2.5 2.3 0.7
Japanese yen deposits 0.0 0.0 -0.1
Euro deposits -0.3 -0.4 -0.4 * Six-month rate for USA and Japan and three-month rate for Euro area. Source: World Economic Outlook, IMF, April 2020.
Chart 1-3: Unemployment Rates
12
10 8 6
Percent 4
2 0 2017 2018 2019 2020 (projections)
Euro Area Advanced Economies in Europe
13 14 Saudi Arabian Monetary Authority | 56th Annual Report The surplus recorded by the ratio of the current the of ratio the by recorded surplus The B. Current Account Balances percent in2020(Table 1-5). 8.2 by contract to projected are they and 2019, in percent 0.8 to declined economies developing 11.5 by marketand emerging decrease in Imports 2020. in percent to projected is and 2019 in in advanced economies slowed to 1.5percent The growth inimportsofgoods andservices to decrease by 9.6 percent in2020. projectedHowever,are 2019. they in percent 0.8 developing economies recorded agrowth rate of andmarket emerging of Exports 2020. in percent 12.8 by decrease to projected is exports such of volume The 2019. in percent 1.2 of rate growth exports, advanced economies registered aslow of 11.0 percent in 2020. As for goods and services trade is expected to record a negative growth rate percent in 2018 to 0.9 percent in 2019. Total world The growth rate of world trade volume fell from 3.8 WorldA. Trade World Trade andBalancesofPayments the risingconcerns following theBrexit. declining The governmentall on yields were bonds due to mainly percent. 0.54 at yield 2-year and percent 0.61 at yield 5-year by followed percent, percent.12-yearnextcame0.97 at0.825 The yield Table 1-3:Advanced Economies: Unemployment Rates Source: World Economic Outlook (WEO), IMF, April2020. Canada UK Japan Euro area USA Advanced Economies Italy France Germany
2017 11.3 7.9 6.3 4.4 2.8 9.4 3.8 9.1 4.3
current account (as a percentage of GDP) recorded a emergingIn developingand Asia,theaggregate 1.7 to percent in2020. shrink to expected is it however, 2019; in percent 3.6 to 2018 in percent 3.5 from rose to rise to 4.4 percent in 2020. The surplus in Japan projectedis it but 2018, percentin 3.9 from 2019 in percent 3.8 to declined Kingdom United the in to 3.1 percent in 2020. The current account deficit 2.5 percent in 2018; the surplus is projected to rise percent3.0 of surplus against2019 in ofsurplus a the current account balanceto GDPrecorded a of ratio the Italy, for As 2020. in percent 0.7 to decline to projected is it but 2018, in percent 0.6 from 2019 in percent current 0.8 to rose the deficit account France, In 2020. in percent decline 6.6 to to projected is it 2018; in percent 7.4 to compared 2019 in percent 7.1 to decreased surplus the Germany, In 2020. in percent 2.6 to 3.1 percent in 2018, and it is expected to decrease of surplus a against 2019, in percent 2.7 at stood 2020. In the euro area, the current account surplus in 2.6 percent to to increase projected is deficit the However, 2018. in percent 2.4 from 2019 in the current account deficit declined to 2.3 percent from that registered in 2018. In the United States, remained stable at 0.7 percent in 2019, unchanged account balanceto GDPinadvanced economies 2018 10.6 7.1 5.8 4.1 2.4 9.0 3.4 8.2 3.9
2019 10.0 6.6 5.7 3.8 2.4 8.5 3.2 7.6 3.7 ) Ra tio to labor force Pr ojections 2020 12.7 10.4 10.4 10.4 9.1 7.5 4.8 3.0 3.9 ( surplus of 0.6 percent in 2019 against a deficit of 0.1 As for emerging market and developing economies, percent in the preceding year, and it is projected to the overall BOP financial account deficit decreased record a surplus of 0.1 percent in 2020. In the total to $83.8 billion in 2018, compared to $255.6 Global Economy for MENA countries, Afghanistan and Pakistan, the billion in 2017. In Sub-Saharan Africa, the financial current account recorded a surplus of 0.4 percent account recorded a deficit of $53.6 billion in 2018 against 2.5 percent in 2018, but it is expected to against a deficit of $34.2 billion in the preceding register a deficit of 5.7 percent in 2020 (Table 1-5). year. With regard to emerging and developing Asia, the financial account deficit increased slightly C. Financial Account Balances to $95.5 billion in 2018, compared to a deficit of According to the latest IMF data, the surplus $95.2 billion in the preceding year. In the total for of the BOP financial account balance for the MENA countries, Afghanistan and Pakistan, the advanced economies declined to $355.9 billion in BOP financial account recorded a surplus of $66.3 2018 against a surplus of $439.9 billion in 2017; billion in 2018 against a deficit of $14.6 billion the surplus is estimated to drop to $311.9 billion in the preceding year. A deficit of $21.9 billion is in 2019. In the United States, the BOP financial projected for 2019 (Table 1-6). account deficit rose to $465.2 billion in 2018 compared to $331.9 billion in 2017. In the euro Economic Developments in GCC area, the financial account showed a surplus of Countries $466.7 billion in 2018 against a surplus of $473.2 According to the IMF April 2020 WEO, real billion in the preceding year. In Germany, the economic growth rates in all GCC countries, financial account surplus declined to $274.7 except Bahrain, declined in 2019. The growth rate billion in 2018 from $316.3 billion in the preceding in the UAE declined from 1.7 percent in 2018 to year. The financial account deficit in France 1.3 percent in 2019. The growth rate in Kuwait increased to $45.7 billion in 2018 as compared decreased from 1.2 percent to 0.7 percent, and in to $36.0 billion in the preceding year. In Japan, Oman from 1.8 percent to 0.5 percent. In contrast, the financial account surplus increased to $183.8 the growth rate in Bahrain increased from 1.8 billion in 2018, compared to $158.0 billion in 2017. percent in 2018 to 2.0 percent in 2019.
Table 1-4: Trends of Fiscal Balances*
(Percentage) Projections 2017 2018 2019 2020 Advanced economies -2.3 -2.6 -3.0 -10.6
USA -4.5 -5.7 -5.8 -15.4
Euro area -0.9 -0.5 -0.7 -7.5
Germany 1.2 1.9 1.4 -5.5
France -2.8 -2.3 -3.0 -9.2
Italy -2.4 -2.2 -1.6 -8.3
Japan -3.1 -2.4 -2.8 -7.1
UK -2.5 -2.2 -2.1 -8.3
Canada -0.1 -0.4 -0.4 -11.8 * Ratio of deficit(-)/surplus(+) to GDP. Source: World Economic Outlook (WEO), IMF, April 2020.
15 16 Saudi Arabian Monetary Authority | 56th Annual Report 5.2 percent. Kuwaitrecorded also adecrease in the to percent 5.5 from Oman in and 2019, in percent 2.9 to 2018 in percent 5.9 from declined Bahrain in deficit The 2018. in percent 10.0 from 2019 in current accountthe UAEin surplus to declined 7.4percent The GDP). of percentage a (as balances account current different recorded countries GCC to1.1 percent. 0.6 percent from in Kuwait rose inflation However,2019. in percent 0.1 to 2018 0.9 in percent from decreased rate inflation the Oman, In 2018. in percent 3.1 to compared 2019 in percent of 1.9 negative inflation a recordedUAE The 2019. allGCC declined from 2.1 percent in 2018 to 1.0 percent in in down rate inflation Bahrain, In Kuwait.except went countries, rates inflation, for As Sour * Ratio ofdeficit(-)/surplus(+) toGDP. Emerging andDeveloping Economies Advanced economies Exports (GoodsandServices) Emerging andDeveloping Economies Advanced economies Imports (GoodsandServices) World Trade Growth Advanced economies Table 1-5:World Trade andCurrent Account Current account Emerging andDeveloping Economies Middle East, North Africa, Afghanistan, andPakistan Commonwealth ofIndependent States Emerging andDeveloping Asia Sub-Saharan Africa Latin America andtheCaribbean USA Euro area UK Japan ce: World Economic Outlook(WEO), IMF, April2020. France Germany Italy
*
14.5 percent inthepreceding year (Table 1-7). current account surplus to 8.9 percent compared to impact of political challenges and unforeseen and challenges political of impact that aimed at is studying GCCeconomies andthe develop andimprove themacroeconomic model to efforts its continued GMCO countries. member and preparing reports withthecentral banks of research, conducting projects, several out carrying tasks it the and undertakes. The new developments included its statute in the with out line set in objectives (GMCO) Council work its Monetary developing continued Gulf the 2019, In Gulf the Monetary Council of Developments Latest 1. Regional and International Cooperation 2018 -2.4 -0.6 -3.9 -0.1 -0.1 -2.5 -2.4 3.8 4.1 3.3 5.1 3.3 0.7 3.1 7.4 2.5 3.5 2.5 -- 2019 -0.8 -2.3 -0.8 -3.8 -4.0 -1.7 0.9 0.8 1.2 1.5 0.7 2.7 7.1 3.0 3.6 0.1 0.4 0.6 --
Projections -12.8 -11.5 2020 -9.6 -8.2 -2.6 -0.7 -4.4 -0.9 -5.7 -4.7 -1.5 -11 0.1 2.6 6.6 3.1 1.7 0.1 (Percentage) -- changes on the future of the economy. In addition, and identifying the economic policies affecting GMCO contributed to building technical capabilities the regional economy. Furthermore, GMCO in terms of setting standard models in member participated in many workshops. It also organized Global Economy countries, exchanging relevant technical opinions, a “Liquidity Forecasting and Management” and seeking technical comments and advice on such workshop with the participation of international models from official authorities. Moreover, GMCO financial institutions, monetary agencies, and worked with the national central banks to develop central banks in the GCC countries. Holding the a comprehensive framework for managing banking workshop reflected the increasing importance of liquidity forecasts with the aim of enhancing the banking liquidity management and the GMCO’s efficiency of monetary policy management. GMCO keenness to implement the recommendations also prepared a report to assess member compliance contained in Article IV Consultations issued by the with the Special Data Dissemination Standard IMF for all member countries. During the workshop, (SDDS) for publication of statistics, given the relative participants had technical discussions and shared difference among the statistical data publication practical experiences. In addition, GCC monetary systems used in the GCC countries in terms of agencies and central banks provided technical the availability of data, frequency of publication, comments and advice. and compatibility with international statistical standards. GMCO is working on preparing a model 2. Gulf Common Market (GCM) for financial programming and macroeconomic GCC intra-trade transactions (exports and imports) policies. The model is a comprehensive framework increased steadily from $92.7 billion in 2010 to for analyzing the current economic state in member $145.5 billion in 2018. Statistics show that more countries, forecasting the economic trends, GCC citizens are benefiting from the GCM decisions,
Table 1-6: Financial Account Balances
)Billion USD(
Projections 2017 2018 2019 Advanced Economies 439.9 355.9 311.9
USA -331.9 -465.2 -507.1
Euro area 473.2 466.7 --
Germany 316.3 274.7 279.6
France -36 -45.7 -7.9
Italy 58.0 40.0 60.2
Japan 158.0 183.8 177.4
UK -115.7 -85.8 -120
Canada -40.4 -37.8 -53.7
Emerging and Developing Economies -255.6 -83.8 -106
Sub-Saharan Africa -34.2 -53.6 -52.2
Emerging and Developing Asia -95.2 -95.5 -11.3
MENA countries, Afghanistan and Pakistan -14.6 66.3 -21.9
Emerging and Developing Europe -48.5 -4.5 -3.1
Latin America and the Caribbean -85.9 -110 -102.4
Commonwealth of Independent States 22.8 113.3 84.8 Source: World Economic Outlook (WEO), IMF, April 2019.
17 18 Saudi Arabian Monetary Authority | 56th Annual Report Source: World Economic Outlook (WEO), IMF, April2020&Arab Economic Outlook,2020.*World Bank05/04/2020. 14 membercountries. to AMF the by extendedwere loans 184 of total A the end of 2018 were AAD 2.32 billion ($10 billion). Arab extended by theAMF tomember countriesto up million 188.7 loan of Accounting Dinars ($793million). (AAD) at Total loans balance the stood 2018, of commitments end the of As ArabA. Monetary Fund(AMF) and theiractivities. and performance agendas. The following their is a brief of these review institutions Inthese they year. meetings, oftheir annual every spring hold the in meetings institutions financial Arab 3. Arab FinancialInstitutions joint-stock 644 companies during2018. in shareholders 428,089 about was markets stock GCC other in trading citizens of number the markets, stock for As 2018. in made real estate’s from purchases 45,893 with rose, decisions ownership benefiting citizens GCC of number The 47,827. than more to licenses such of GCC countries increased,the total pushing number inother activities economic different citizens practicing GCC to granted licenses of number the Furthermore, 2018. in million 28 to countries GCC travellingcitizens between of number the bringing Population (million)* Current Account to GDP ai fsrlsdfcti iclblne . 08-19-10.6-5.9 -11.9 -0.8 2.0 Ratio ofsurplus/deficit infiscal balance Current account (billionUSD) Exports (billionUSD) Imports (billionUSD) Inflation Rate Real GDPGrowth Table 1-7:Key Economic Developments inGCCCountries 254-- -235.4 0821 0821 0821 0821 0821 082019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 316.9 10.0 37.8 .013 .020 .003 .005 .001 .00.70 1.20 0.10 1.50 0.50 1.80 0.30 2.40 2.00 1.80 1.30 1.70 United Arab . 9.7 9.6 3.1 Emirates
-1.9 7.4 --. -- -2.2 -- -- -19.1 18.3 59-. 9.0 -2.9 -5.9 . . 3734.2 33.7 1.7 1.6 2.1 Bahrain 1.0 -- --
percent. 1.4 facilitywith oil the percent2.8 and facility with reform trade the by followed percent, 29.9 with structural adjustment facilities extended came next of percent totalextended loans throughoutThe period. 60.3 this representing 2018, of end the until 1978 in activities lending its of beginning the AMF from the by granted facilities credit of top the at were AMF the and by extended loans) extended compensatory ordinary, (automatic, Loans equity investments. 2018 in in loss to due 2017 in million million $271.6 to compared $39.9 to declined income Net compared to $4.8billionat theendof2017. 2018 of end the at billion $4.9 to assets net its of in an increase resulted which position, financial sound a maintaining of policy its continued BADEA each, oftotal loans. development sector accounted for 23.3percent, sectorthe social both the agriculture and rural and total loans, amounting to 53.4 percent. Lending for Infrastructurethe largesthad lending share of million $565 of Africa. in projectsdevelopment forapprovedwere value a with loans 15 2018, In Development inAfrica (BADEA) B. Arab Bankfor Economic -139.0 260.0 Saudi Arabia 32.0 Kingdom of . -1.2 2.5 -4.5 . 55-5.2 -5.5 6.3 --. -- -6.7 ------26.0 40.5 79-7.0 -7.9 . . . 2.8 2.8 5.0 4.8 . . . 060.6 -0.6 0.2 0.1 0.9 mnQatar Oman -- -- -32.0 75.0 . 4.1 5.2 8.7 9.8
. 14.5 2.4 -1. -- 14.6 ------31.0 68.5 . 4.2 4.1 . 4.8 9.0 Kuwait 8.9 1.1 -- -- C. Arab Fund for Economic and Social E. Arab Authority for Agricultural Development (AFESD) Investment and Development (AAAID)
During 2018, the AFESD extended 11 loans with a AAAID’s contribution to the capital accounts of Global Economy total of Kuwaiti dinar (KWD) 464 billion to finance existing and to-be-formed companies in 2018 projects in six Arab countries. The ratio of loans (contributions and loans) amounted to $607 to total cost of these projects was estimated million, or 84 percent of its paid-up capital of at 78.6 percent. The cumulative value of 677 $720.7 million. loans extended by the AFESD, starting from the Total income of AAAID was $36 million in 2018, commencement of its operations in 1974 up to the versus $73 million in the preceding year. The end of 2018, reached KWD 10.3 billion. income was generated mainly from investment portfolios, loans and companies’ profits. Net profit Total revenues for 2018 stood at KWD 61.4 reached $9.4 million, compared to $15.5 million in million compared to KWD 126.6 million in 2017. the preceding year. Administrative expenses were KWD 8.4 million Total assets stood at $979 million at the end of in 2018, and net profit stood at KWD 49 million 2018 against $193 million in the preceding year. compared to KWD 112.8 million in 2017. Member AAAID’s total liabilities stood at $45.9 million in country total rights stood at KWD 3.6 billion at the 2018 compared to $45.6 million in the preceding end of 2018, versus KWD 3.5 billion at the end of year. In 2018, its net income reached $12 million 2017. versus $21 million in the preceding year.
D. Arab Investment and Export Credit 4. Islamic Development Bank (IsDB) Guarantee Corporation (Dhaman) IsDB’s total assets rose from $30.6 billion at the Dhaman’s assets in 2018 totaled $150 million, end of 2018 to $32.6 billion at the end of 2019. 66.67 percent of which was in investments, 31.68 Total liabilities also grew from $18.5 billion to $20.1 percent in cash and deposits and 1.65 percent in billion. In addition, total revenues increased from other assets. Equity stood at $468 million at the $747.8 million to $896 million, and net income end of 2018, compared to $471 million in the almost doubled, rising from $116.7 million to preceding year. $230.3 million. IsDB’s total granted loans rose from Total income of Dhaman was $17 million in $2.4 billion to $2.8 billion in 2019. Outstanding 2018. Of this amount, $12.3 million was from loans also went up from $18.9 billion at the end of guarantees, banks and bonds interest income, 2018 to $20.3 billion at the end of 2019, and repaid accounts on demand and other miscellaneous loans from $18.9 billion to $20.3 billion. On the income; and $11.8 million was from investment other hand, total expenditure declined from $223 income, dividends income, the sale of a number of million in 2018 to $216.3 million in 2019. investments in bonds, financial funds, investment portfolios and currency spreads. Dhaman’s general 5. OPEC Fund for International and administration expenses for 2018 reached $9.8 Development (OFID) million. OFID’s equity (including reserves and member In 2018, Dhaman incurred losses of $3.1 million country contributions) increased to $7.4 billion at against profits of $17.5 million in the preceding the end of 2019 against $7.2 billion at the end of year. 2018. OFID’s total assets rose to $7.6 billion at the
19 20 Saudi Arabian Monetary Authority | 56th Annual Report The IMFC41 its held Committee (IMFC) Financial and Monetary International 6. International Monetary Fund (IMF) World Bank, toward a time-bound suspension by suspension time-bound a toward Bank, World and IMF the by supported Club, Paris the and G20 welcomed thecoordinated approachagreed by the its poorestmost and vulnerable members. Italso support can IMF the that ensure to additional contributions for called Trust and far Growth so received and (PRGT) Reduction Poverty the and (CCRT) Trust Relief and Containment Catastrophe Moreover, the IMFC welcomed the pledges to the sustainable growth. speedy returneconomythe global of to strongand a to facilitate measures stability financial further take will it that confirmed stability. also financial It maintain and conditions financial global stressed alleviate to authorities financial and of banks central the actions welcomed it the addition, economic In growth. restore to overcome and jobs, protect tools pandemic, policy financial and monetary available all of employment continuous a recovery the economicin growth withthe surroundingeconomy.the global It expected The IMFCuncertaintythe high discussed also and demand,tightening financial conditions. to contain the virus, disruptions in economic supply measures health the necessary taken by countries reflects contraction economic such that indicated meeting The pandemic. COVID-19 the to due 2020 in sharp contraction a witness it will that noting economy, global the discussed meeting The 2020. n 08 OI’ nt noe n 09 a $232.7 million against $92.5millionin2018. was 2019 in income net OFID’s 2018. in reached $303.1 million compared to $160.6 million 2019 forTotal income 2018. in billion $1.1 against Total2018. in increasedrepaidbillion loans to$1.2 increased to $1.5 billion in 2019 against $1.4 billion loans extendedyear. totalOFID’spreceding the of end the at billion $7.4 to compared 2019 of end st virtual meeting on April 16, April on meeting virtual the pandemicand supportingeconomic recovery. partners. It asked themto collaborate inaddressing and bilateral institutions, financial international agencies, UN other Organization, Health World to continue helping allclients, inpartnership withthe mandates, respective their within (IMF), Fund International Monetary the and WBG The Development Committee also encouraged the and economic consequences. social, health, its mitigate and the pandemic to contain needed is cooperation multilateral that emphasized It innovation. and action collective decisive, requiring challenges the development community increasingly faces global that underscores pandemic that COVID-19 the noted it to the Moreover, pandemic. due COVID-19 challenges difficult the reviewed The meeting its 2020. 17, held April on meeting Committee virtual Development WBG The Development Committee 7. World BankGroup (WBG) of IMFgovernance reform underthe16 process the continuing and quotas of adequacy the to revisiting commitment its affirmed IMFC its by helping members mandate overcome thecrisis.Furthermore, the its fulfill that can confidence IMF the maintain to critical is US$1 trillion of capacity lending IMF’s the that noted meeting IMFC The review. close under resources IMF’s the on demands keep will it that It stressed net. safety financial global the of center the quota-based, and adequately resourced IMF at a strong, to commitment its reaffirmed IMFC The initiative on comparable terms. the in participate to creditors private on called It for thepoorest countries that request forbearance. payments service debt bilateralcreditors of official as aguide, by December 15, 2023. Review ofQuotas, includinganew quota formula th General Further, the Development Committee pointed economic and environmental vulnerabilities and out that the global economy is experiencing climate change. In addition, the Development an exceptional negative shock as a result of Committee urged the WBG and the IMF to ensure Global Economy COVID-19. The attendant sharp decline in global effectiveness on the ground and help countries investor confidence has severely tightened create the conditions for inclusive and sustainable external financing conditions for countries across long-term growth. the income spectrum. The pandemic is disrupting trade, supply chains and investment flows. The 8. Bank for International Settlements Development Committee stressed that special (BIS) attention should be paid to the provision of The BIS 2019 Annual Economic Report concluded affordable medical supplies. It also asked that that the global economy witnessed significant all countries ensure the flow of vital medical improvement in the first half of 2018, but the supplies, critical agricultural products, and other slowdown in the second half of 2018 negatively goods and services across borders, and that they affected the stability of the financial markets. The work to resolve disruptions to the global supply main factors behind this slowdown were that global chains, to support the recovery. trade came to a halt, manufacturing decelerated and investment lost pace. The Development Committee welcomed the WBG’s The report addressed short- and medium-term estimated financial support of up to US$150-160 projections, which are as follows: billion over the next 15 months, with a focus on • Political factors, especially those related to the poorest and vulnerable in all client countries. trade policies and trade tensions between It also welcomed the IMF’s stepping up of financial countries, will cast a long if unpredictable support for developing countries through both its shadow over the world economy. regular facilities and emergency funding. • The global production growth will slow down, affected by the finance factor and The Development Committee emphasized that inflation rate. the WBG has the financial firepower to provide a The report also referred to the competitive threat meaningful long-term response to this crisis thanks posed by large technology firms (“big techs”) to to the capital increases for the International Bank commercial banks. Big techs have made significant for Reconstruction and Development (IBRD) and progress in providing innovative financial services the International Finance Corporation (IFC), as well to their large network of customers. Building on as the successful replenishment of the International their e-commerce platforms, some big techs have Development Association’s resources (IDA19 ventured into lending to consumers and have acted Replenishment). It encouraged all shareholders to as a distribution channel for third-party providers, accelerate the subscription processes and front- e.g. by offering wealth management or insurance load their contributions to the greatest extent products. Consequently, the market capitalization possible. of big techs has exceeded that of some commercial banks. The Development Committee noted that the WBG must not only address immediate economic 9. Financial Stability Board (FSB) needs, but also support long-term development The Financial Stability Board (FSB) Plenary priorities, ensure affordable energy access, discussed in its last meeting in 2019 the and build energy security and resilience to vulnerabilities in the global financial system,
21 22 Saudi Arabian Monetary Authority | 56th Annual Report • • follows: standards, various issued reports,and guidelines, are which BCBS briefed as the 2019, In (BCBS) Supervision 10. BaselCommittee onBanking 2. 1. work program are asfollows: Arabia’s FSB the for priorities Saudi Main G20. the of Presidency to deliverables including 2020, for program work FSB’s the discussed Members systemic riskintheinsurance sector. of mitigation and assessment the for framework holistic (IAIS) Supervisors Insurance of Association Plenary discussed key elements of the International the Moreover, key topics. these on reports initial FSB The services. cloud in approved publishing dependencies firms third-party of from BigTech and finance into entry the from implications addition, In stability financial potential the discussed members rapidly. developing are these that of so-called ‘global stablecoin’ systems, recognizing those markets to take account ofthedevelopment in risks stability financial potential monitoring for FSBmembers endorsed anaugmented framework reviewed developmentscrypto-asset in markets. also Plenary The stability. financial the on change FinTech developments, and impactofinterest rate 3.
R ofthe framework. impact of monitoring and implementation the course the in identified Committee Basel the that issues address to market standard risk:The has beenrevised The their leverage ratios based on quarter-end based ratios leverage their out sets additional requirements for banks to disclose publication The requirements: evaluating the effects ofthe reforms. Monit Finalizing in thefinancial system, Addr reforms, and evisions to leverage ratio disclosure ratio leverage to evisions essing new and emerging vulnerabilities minimum capitalminimum requirements for oring the implementation and implementation the oring and operationalizing post-crisis operationalizing and • • • • • • •
St Basel III R securities financing transactions. of values average daily on and standardised approach for operational risk operational for approach standardised new the finalized BCBS The risk: operational the BaselIIIstandardisedapproach for Fr Basel Committee memberjurisdictions. across use in practices review supervisory The report describes key concepts Pillar2and of approaches: and practices Ov and supervision. A R phase willtake placeon1September 2021. With this extension, the final implementation implementation of the margin requirements. final the year one by extend revisions The revised. was derivatives cleared centrally 2015 The framework for marginrequirements for non- derivatives: cleared centrally consistency withtheBaselframework. by its members and assesses the regulations’ regulations of adoption timely the monitors Committee Basel standard. The (NSFR) Ratio Committee’sBasel the of Net Stable Funding large exposures frameworkassessment and (RCAP): Assessment of the Basel Committee’s standardised approach to credit risk. (ECAI) to the risk weights available under the eligible external credit assessment institution the creditassigning risk assessments an of forguidelines supervisors theprocess in of process:mapping document This sets out III Basel standards for banks. the of implications the reviews regularly Committee the process, reporting rigorous a Through 2018. June 30 of as data latest BaselIIImonitoring exercise, based on presents the results of the Basel Committee’s evisionsto marginrequirements for non- egulatory Consistency Assessment Program report on proportionality in bank regulation andardised approach–implementing the approach–implementing andardised equently asked questions (FAQs) on (FAQs) questions asked equently erview of Pillar 2 supervisory review of Pillar 2supervisory erview Monitoring Report:report This capital, as published in the Basel III: Finalizing 3 templates for the disclosure of banks’ Post-Crisis Reforms in December 2017. sovereign exposures. The implementation of
• Consultative document on the revised market these templates is voluntary-that is they are Global Economy risk disclosure requirements: The document mandatory for banks only when required by includes the introduction of a “traffic light” national supervisors at a jurisdictional level. approach for capital requirements as a consequence of the outcome of the profit 11. The Group of Twenty (G20) and loss attribution test for banks using the The G20 Leaders’ Summit was convened in internal models approach. Osaka, Japan on 28-29 June 2019 to make united • Report on open banking and application efforts to address global economic challenges. programming interfaces (APIs): The report The G20 Leaders announced their commitment discusses the challenges facing banks as a to lead the efforts to foster development and result of sharing and leveraging of customer- address global challenges to achieve strong, permissioned data from banks with sustainable, balanced and inclusive growth, as third party developers and firms to build envisioned in the 2030 Agenda for Sustainable applications and services to provide more Development. The Summit focused on challenges efficient and transparent options in banking. to the global economy, fostering robust global • Guiding principles for the operationalization economic growth, technological innovation, of a sectoral countercyclical buffer: Basel III quality infrastructure investment, anti-corruption, standard includes a countercyclical capital future of work, and women’s empowerment. The buffer (CCyB) regime. National authorities Summit indicated that the global growth appears can implement a CCyB requirement to ensure to be stabilizing and is generally projected to pick that the banking system has an additional up moderately till 2020. This recovery is supported buffer of capital to protect against potential by the stimulus measures taking effect in some future losses related to downturns in the countries. credit cycle. The G20 Leaders also reaffirmed their commitment • Consultative document on credit valuation to use all policy tools to achieve strong, adjustment risk-targeted revisions: sustainable, balanced and inclusive growth, and Improvements to the capital framework to safeguard against downside risks, by stepping better capture credit valuation adjustment up dialogue and actions to enhance confidence. (CVA) risk is one of the key elements of the In addition, the Summit stressed the importance Basel Committee’s overall efforts to reform of rebuilding buffers where needed and ensuring global regulatory standards in response to debt as a share of GDP is on a sustainable path. the global financial crisis. It indicated that monetary policy will continue • Launch of the consolidated Basel Framework: to support economic activity and ensure price The framework comprises 14 “standards”, stability. Moreover, it reaffirmed the exchange setting out requirements on specific topics, rate commitments made by the finance ministers each of which is further divided into and central bank governors in March 2018. “chapters”. This modular format will make it The Summit touched upon demographic changes, easier to maintain the standards over time. including population aging. It noted that these • Consultative document on voluntary changes will require policy actions that span disclosure of sovereign exposures: The fiscal, monetary, financial, labor market and other Committee is seeking views on three Pillar structural policies. The Summit endorsed the G20
23 24 Saudi Arabian Monetary Authority | 56th Annual Report The 177 Exporting Countries (OPEC) 12. Organization ofthe Petroleum as well as various administrative matters. The matters. administrative various as well as report ofthe Economic CommissionBoard, the OPEC Secretariat, the and (JTC) Committee work Joint Technical the by supported be to whose continues (JMMC), Committee report Ministerial Monitoring Joint the the of report, recommendations and General’s Secretary the reviewed anumber ofreports, most notably achieve sustainable growth anddevelopment. to part essential an is infrastructure quality that InfrastructureQuality Investment, emphasizing for Principles G20 the the endorsed They prosperity. discussed Leaders G20 infrastructure, as adrivereconomic of growth and the addition, In intellectual property protection, rights, andsecurity. data privacy, to related addressing challenges continue to how explored Summit and innovation, improved sustainable development. Besides, the greater productivity, generates knowledge higher and data, ideas of information, flow cross-border the that indicated The Summitdiscusseddigitalization and to constructively withother WTO members. (WTO) Organization work to Further, pledged Tradefunctions. it its improve World the of reform thenecessary for It support its and development. reaffirmed creation job innovation, productivity, growth, of engines important are confirmed that international trade and investment environment, andto keep markets open. Italso predictable andstable trade andinvestment realize afree, fair, non-discriminatory, transparent, emphasized that membercountries strive to Ministerial G20 the Statement onTrade andDigital Economy. It welcomed Summit The Inclusion. and Financial Aging on Priorities Policy Fukuoka th Meeting of the OPEC Conference OPEC the of Meeting as Alternate Chairmanfor thesameperiod. OPEC, for Iran’sGovernor IR Hossein Ardebili, Kazempour Mr. and 2020, year the for Gabon’sGovernors Lepoukou, Governor for Etienne OPEC, asChairmanofthe Board of Mr. appointed Conference the addition, In period. same the for Mineral of Resources andPetroleum, asAlternate President Minister Angola’s Azevedo, Pedro effect from 1 January 2020, and HE Dr. Diamantino as President oftheConference for oneyear, with Mohamed Arkab, Minister ofEnergy ofAlgeria, In another regard, the Conference elected HE actively Agreement. Paris the are of supportive and engaged Countries Member OPEC all that Conference inMadrid, Spain,andunderscored Change Climate Framework Nations United 25 keythe developmentsnegotiations COP- the of at to the oilmarket. The Conference deliberated on commitment continued achieving andsustaining balanceandstability in their for (DoC), of Cooperation’ ‘Declaration in the participating Countries, aswell asnon-OPEC countries Conference commended allOPEC Member including globaloilmarket developments. The Conference alsodiscussed anumber oftopics, SAUDI ECONOMY 26 Saudi Arabian Monetary Authority | 56th Annual Report 2,639.8 billion in 2019 compared to an increase of of increase an to compared 2019 in billion 2,639.8 indicate that the GDP grew by 0.33 percent to SAR Preliminary data GDP on at prices constant EconomicGrowth achieve to economy. domestic the of market, sector growth sustainable private labor the Saudi support and the workforce in national participation increase to solutions sustainable introduce leaps, developmental make With to aims Arabia 2019. Saudi resolutions, during these adopted resolutions of Arabia myriad Saudi a programs, of 2030 government Vision the the reviewing assessing and periodically and initiative, Vision Saudi the in partner major a as sector private the of role the activating by base production its diversifying efficiency, economic domestic increasing at aimed efforts its of continuation In shocks. these of impacts the neutralizing to contributed that programs 2030 Vision Saudi of support the and projects development on to ongoing government attributed expenditure be can resilience This volatility. price resulting oil from shocks economic absorb to ability and resilience the showed economy domestic The 2030. Vision Saudi the of achieve aspirations the to years recent during the government by taken package reforms financial and economy from the economic benefited Saudi The to market. oil aiming the in stability deal achieve OPEC+ the Arabia’s to Saudi commitment by driven output, in sector decline oil substantial the despite occurred growth economic This performance. strong a sector, non-oil the of registeredwhich support the to due 2019 in grew economy Saudi The Saudi Economy .6 ecn, respectively. percent, 3.96 water declined percent, by 3.64 1.56 percent, and and gas electricity, andindustries; manufacturing 1.31 by fishing percent. On the other hand, and mining and quarrying; forestry agriculture, and producers of government services by 1.51 percent; percent; 3.46 by services bank imputed percent; 4.60by building and construction percent; 5.53 insurance, real by estate and business services finance, percent; 5.60 by communications and storage transportation, percent; 6.27 by hotels and wholesale and retail trade, and restaurants social percent; 6.94 Community, by grew activity services 2-2). personal (Table varied at rates albeit 2019, in at grew prices activities constant production economic major Most billion. 453.6 SAR to percent 2.20 government GDP grewand the by non-oil sector growth rate of 3.78 percent to SAR 1,073.7 billion, GDP a recorded private sector billion. non-oil The 1,527.3SAR to percent 3.31 of growth significant In GDP billion. recordedcontrast, a sector the non-oil 1,096.2 SAR to GDP sector oil the in decrease percent 3.65 a attributed to was growth 2.43 percent in 2018 (Table 2-1). This slowdown in consumption expenditure of the private sector sector private the of expenditure consumption 1.23 percent due to percent a3.5 increase in the by increased sector private final the of The consumption 2019. in percent 2.32 of increase an recorded prices) current (at sector non-oil the by total demandThe for goods and services percent. 5.30 by rose also services and goods of imports respectively. Total thefrom government and private sector, sector percent 4.11 and percent 4.41 of contribution a with percent, 4.21 by (at prices) increased current an recorded increase of 4.44 percent in 2019. The GDP non-oil prices) current (at sector non-oil the from total supplyThe of goods and services Domestic SupplyandDemand despite a 2.3 percent decline in the consumption Inflation expenditure of the government sector. In addition, The non-oil GDP deflator rose by 0.9 percent in Saudi Economy gross capital formation went up by 6.18 percent 2019 compared to a rise of 4.3 percent in 2018. In (Table 2-3). contrast, the average consumer price index (CPI) contracted by 2.1 percent during 2019 compared Moreover, non-oil exports increased by 1.08 to a rise of 2.5 percent in 2018. The CPI’s main percent, with service exports rising by 23.05 components recorded decreases in housing, percent, compared to an increase of 8.39 percent water, electricity, gas and other fuels; recreation in the preceding year. However, commodity exports and culture; clothing and footwear; transport; recorded a decline of 5.80 percent compared to an communication; home furnishing, equipment increase of 21.69 percent in the preceding year and maintenance; and miscellaneous goods and (Table 2-3). services. In contrast, restaurants and hotels, food
Table 2-1: Selected Economic Indicators
2018 2019
Estimated population (million) 33.4 34.2
GDP at current prices (billion riyals) 2,949.5 2,973.6
GDP at constant prices (billion riyals) (2010=100) 2,631.1 2,639.8
Non-oil GDP deflator 131.5 132.7
Inflation rate (consumer prices) (2018=100) 2.5 -2.1
Aggregate money supply M3 (billion riyals) 1,853.6 1,985.1
Daily average of oil production (million barrels) 10.32 9.81
Average price of Arabian Light oil* (USD) 70.59 64.96
Riyal's effective exchange rate (2010=100) 113.4 113.2
Currency in circulation to total money supply ratio 9.7 9.5
Deposits to money supply ratio 90.3 90.5
Net foreign assets of domestic banks (billion riyals) 120.9 70.5
Interest rates on Saudi riyal deposits (3 months)** 2.5 2.6
Bank capital adequacy ratio (Basel III) 20.3 19.3
Actual government revenues (billion riyals) 905.6 926.8
Oil revenues (billion riyals) 611.2 594.4
Actual government expenditures (billion riyals) 1,079.5 1,059.4
Budget deficit (billion riyals) -173.9 -132.6
Budget deficit to GDP ratio -5.9 -4.5
Commodity Exports (billion riyals)*** 1,103.9 980.7
Commodity imports CIF (billion riyals) 514.0 541.3
Current account surplus to GDP ratio 9.0 6.3
Current account (billion riyals) 264.8 186.9
Tadawul All Share Index (TASI) (1985 = 1000) 7,826.7 8,389.2
Public debt to GDP ratio 19.0 22.8 * OPEC numbers. ** Interbank offered rates (SAIBOR). *** Including oil and non-oil exports. Source: GaStat, MoF, MoE, MIM, CMA & SAMA.
27 28 Saudi Arabian Monetary Authority | 56th Annual Report * Preliminary data. Sour in 2018 (Table 2-1).(Table2018 in barrels million 10.32 to compared 2019 in barrels million 9.81 to percent 4.9 by decreased oil crude of production daily average Arabia’s Saudi data, (MOE) Energy of Ministry the to 2018. According in crude oil to $64.96 per barrel from $70.59 per barrel percent in the average of price the Arabian Light 8.0 of decrease a show 2019 for (OPEC)Countries Exporting Petroleum of Organization the of Data Resources Energy, Industry andMineral gis a ie f 60 ecn i 2018. in percent 16.0 of rise a against 2019 in percent 2.0 by (WPI)increased index price health increases.recorded Furthermore, the wholesale and tobacco, education, beverages, and Table 2-2:Gross Domestic Product by Economic Sector at Producers’ Values at Constant Prices(2010=100) 1. Agriculture, forestry &fishing IndustriesA. andotherproducers (excluding government producers) services’ 3. Manufacturing activities b.Othermining&quarrying a.Crudepetroleum &natural gas 2. Mining&quarrying a.Petroleum refining b.Otherindustries 4. Electricity, gas &water 5. Construction &building 6. Wholesale&retail trade, restaurants &hotels 7. Transport, storage &communication 8. Finance,insurance, real estate andbusinessservices a.Real estate activities b.Others 9. Community, social&personal services 10. Lessimputed charge bankservices Import duties Total (excluding importduties) B. Government producers services' GDP ce: GaStat
,0,6 ,3,4 998,125 1,008,789 1,036,740 1,046,918 1,000,160 1,010,104 ,4,2 ,1,7 2,623,474 2,616,070 2,549,820 ,6,6 ,3,9 2,639,811 2,631,091 2,568,569 311,982 215,449 117,259 229,378 151,789 355,600 249,794 134,487 115,307 60,422 96,533 34,132 50,323 20,963 18,749 9,944 2017 data issued by the Ministry of Industry and and Industry of Ministry the by issued data and mineral resources, for industry the latestAs megawatts. electricity 53,104 of was capacity generation actual the and 2019, in 62,076was megawatts electricity of load peak The government by consumption with 13.5percent followed (37.8 million MWh). MWh), million (46.8 consumption came third with 16.7 percent 17.7MWh).withCommercial (49.4million percent consumption industrial by followed Arabia, Saudi in consumption electricity total of MWh) million residential (128.1 percent consumption, 45.8 for accounted of consumption megawatt-hours type million By 2019(MWh). 279.7 in to electricity amounted of sales (SEC)’s Electricity Saudi Company the electricity, to regard With 318,529 224,153 113,172 231,569 154,946 366,165 257,692 137,934 119,758 10,178 60,617 94,376 34,776 52,918 21,232 15,021 2018 313,553 222,183 118,381 246,085 163,618 371,677 271,938 142,621 129,317 10,664 61,410 91,370 33,398 56,591 21,966 16,338 09 Change% 2019 2019* (Million SAR) -3.72 -3.64 -1.56 -3.18 -0.88 -3.96 4.77 1.31 0.28 1.51 4.60 0.33 6.27 5.60 5.53 3.40 7.98 6.94 3.46 8.77 Mineral Resources (MIM) show that the mining spread over Saudi Arabia. Currently, Saudi Arabia and mineral industries sector contributed with has 6 gold mines and 2 copper and zinc mines. In SAR 63.8 billion in 2019. Saudi Arabia’s revenues 2019, the production from these mines exceeded Saudi Economy from the mining and mineral industries sector 12 tons of gold, 63,000 tons of copper, and 19,000 reached SAR 4.9 billion. tons of zinc.
In addition, the sector’s total exports stood Money Supply and Banking Activity at SAR 26.3 billion. Besides, the number of Broad money supply (M3) increased by 7.1 percent employees in the sector reached 250 thousand. In to SAR 1,985 billion in 2019 compared to an 2019, MIM issued 163 building material quarrying increase of 2.7 percent in 2018. Bank deposits, licenses, bringing the total number of licenses in which represented 90.5 percent of M3, recorded this field to 1,399. MIM also renewed 497 mining an increase of 7.3 percent to SAR 1,796.0 billion licenses, including 168 licenses for exploration of in 2019 compared to an increase of 2.5 percent gold, other precious minerals and base metals, in 2018. Currency in circulation also grew by 5.0 bringing the total number of licenses in this field percent compared to a growth of 4.7 percent in to 536. At the end of 2019, the number of valid 2018. A breakdown of the components of bank mining licenses stood at 2,095 compared to 2,045 deposits to M3 in 2019 indicates that demand at the end of the preceding year. Moreover, as deposits constituted 55.4 percent, time and a result of MIM’s prospecting for metals, more savings deposits 25.3 percent, and other quasi- than 3000 metal deposits were identified in money deposits 9.8 percent of aggregate money the Arabian Shield. MIM reserved five sites rich supply (M3). A breakdown of deposits by sector in precious metal resources, bringing the total at the end of 2019 shows that deposits of the number of mining complexes to 375 sites with private sector increased by 4.5 percent to SAR an area of more than 65,000 square kilometers 1,390.5 billion (constituting 77.4 percent of total
Table 2-3: Total Domestic Non-Oil Sector’s Supply and Demand(At Current Prices)
(Million SAR)
2017 2018 2019* Change% 2019
Total supply** 2,327,965 2,458,194 2,567,320 4.44
Non-oil GDP 1,823,518 1,944,202 2,026,064 4.21
Government 576,059 643,346 671,743 4.41
Private 1,247,459 1,300,856 1,354,322 4.11
Total imports 504,447 513,993 541,256 5.30
Total demand** 2,588,327 2,772,273 2,836,499 2.32
Final consumption 1,694,622 1,844,341 1,866,990 1.23
Government 630,978 726,101 709,171 -2.33
Private consumption 1,063,644 1,118,241 1,157,819 3.54
Gross capital formation 632,232 618,793 657,030 6.18
Non-oil exports 261,473 309,138 312,480 1.08
Commodity exports 193,479 235,443 221,798 -5.80
Service exports 67,994 73,696 90,682 23.05 * Preliminary data. ** The mismatch between supply and demand is because total imports and gross capital formation include oil imports. Source: GaStat
29 30 Saudi Arabian Monetary Authority | 56th Annual Report the preceding year. Net written premiums (gross premiums in written Net percent year. preceding 1.8 the from up 2019, in percent 1.9 at stood Arabia Saudi in written GDP) non-oil (gross to premiums rate penetration insurance The Insurance Sector compared to an increase of 9.8 percent in 2018. in percent 9.8 of increase an to compared profits banks’ went up by 4.5 percent to 50.3 billionSAR in 2019 Commercial Committee. Basel by recommended ratio the above well percent, 19.4 at stood Ratio) Adequacy (Capital standard to risk-weightedcapital according to Basel assets of ratio The 2019. of end the at percent 13.0 to rose assets total to reserves and capital of ratio theSimilarly, bank percent. 19.1 to increased total deposits to reserves and capital of ratio the percentof 4.3 in the preceding year. Accordingly, percent to SAR 343.0 billion compared to a decline 13.0 by increased banks commercial of reserves in the preceding year. Consequently, and capital SAR 239.4 billion to compared to reserves a decrease of banks’ 8.4 percent commercial in 7.4 percent of increase an indicate 2019 in data banks consolidated The financial commercial position of the of year.previous end the at percent 107.8 to compared deposits bank total of 110.9percent to increased 2019 of end the at sectors both on claims total 24.8 percent of total bank deposits. Consequently, billion,representing 24.1 by 445.3 SAR topercent total bank claims increased the on public sector addition, In 2018. in percent 86.4 to compared billion, accounting for86.1 percent of total bank 1,546.5 deposits SAR to percent 7.0 by up went 2019 of shows end that total bank claims the on private sector the at sectors public and private Moreover, abreakdown of bank claims the on total bank deposits. of percent 22.6 for accounting 2019, of end the at billion 405.5 SAR to percent 18.2 by increased also deposits sector’s public The deposits). bank 58 ecn i 2018. in percent 85.8 to compared premiums written gross of percent 83.6 constituting billion, 31.7 SAR to amounted of reinsurance) share the less premiums written compared to SAR 173.9 billion in 2018. in billion 173.9 SAR to compared declined by 23.7 percent 132.6 to SAR billion as also deficit actual The 2018. in billion 1,079.5 SAR to compared billion1,059.4 SAR to percent 1.9 by billion. In expenditures contrast, actual went down 332.4 SAR to percent 12.9 by increased revenues non-oil while billion 594.4 SAR to percent 2.8 by declined revenues Oil 2018. in billion 905.6 SAR to compared billion, 926.8 SAR to percent 2.3 by rose revenues that indicate (2019) 1440/1441H Actual revenue and expenditure data for fiscal year Public Finance billion. 880.1 SAR of value a with billion 33.1 to percent 13.1 by decreased 2019 in traded the preceding year.However, the number ofshares of end the at 1,859.0billion SAR from 2019 of end the at 9,025.4billion SAR to percent 385.5 by rose shares issued of capitalization market The 2019. of end the at 8,389.2 to 7.2percent of rise annual an registered (TASI) Index Share All Tadawul The Domestic Stock Market ilo i 2019. in billion increasedby 5.3 percent 541.3 toSAR imports commodity hand, other the On billion. 221.8 SAR to percent 5.8 by exports non-oil and billion 758.9 declining by 12.6 percent towithSAR oil exports billion, 980.7 SAR to exports total of value the in percent 11.2 of decline a to attributed is decrease Arabia’s commodity Saudi trade to SAR 1,521.9 of billion in 2019. volume This the in year preceding the from percent 5.9 of external decrease a indicate trade of figures Preliminary GDP. 6.3 or of billion percent 186.9 SAR of surplus a recording 2019,in declined account current thethat indicate payments of balance Arabia’s Saudi of Estimates Current Account andExternal Trade Trade and Investment other purposes, 11.3 percent for business-related The commercial sector continued to record positive purposes, 9.8 percent for visits to relatives Saudi Economy growth rates. In 2019, the Ministry of Commerce and friends, and 7.0 percent for religion-related (MC) issued commercial registers for 9,889 various purposes. However, expenditure on vacation new companies, a rise of 27.8 percent from and shopping trips decreased by 1.0 percent. 7,735 companies in 2018. The number of valid Expenditure on outbound tourism trips also commercial registers of companies up to the end declined, by 7.0 percent to SAR 70.0 billion in of 2019 amounted to 115.5 thousand. A breakdown 2019, against SAR 75.2 billion in 2018. of commercial registers by region up to the end of 2019 shows that Riyadh region accounted for According to latest data issued by the Ministry the largest share with 44.3 percent of the total, of Tourism and the Tourism Information and followed by Makkah region with 24.1 percent and Research Centre (MAS Centre), the number of then the Eastern Region with 16.7 percent. As for hotels of various classes operating in Saudi Arabia foreign investment, the number of companies rose by 9.0 percent to 2,621 in 2019. As for the licensed by the Ministry of Investment of Saudi share distribution, the Makkah region took the Arabia (MISA) reached 6,703 at the end of 2019, lead with a share of 65.8 percent of operating with the total number of employees reaching 524.3 hotels. Al-Madinah region came next with 17.2 thousand and a total capital of SAR 643.3 billion. percent, followed by the Eastern Region and The number of licenses reached 4,660 granted in Riyadh region with 4.6 percent each. Moreover, the services sector, 1,582 in the industrial sector, the number of furnished housing units stood at and 311 in the commercial sector. 5,660 in all cities of Saudi Arabia at the end of 2019. The Riyadh region accounted for the largest share Tourism of 27.8 percent, followed by the Makkah region Latest data of the Ministry of Tourism (MT) indicate with 22.4 percent and then the Eastern Region that tourism GDP rose by 2.2 percent to SAR 64.3 with 11.4 percent. According to latest projections billion in 2018, constituting 3.3 percent of non-oil of the Ministry of Tourism, the tourism sector is GDP (gross value-added) as estimated for 2018. expected to continue its contribution, directly and indirectly, to creating many job opportunities for Expenditure on domestic tourism trips rose by the national workforce (Tables 2-4 and 2-5). 9.6 percent to SAR 52.7 billion in 2019 from SAR 48.1 billion in 2018. This rise was attributed Agriculture, Water and Animal to expenditure increases of 40.7 percent for Husbandry religion-related trips, 12.5 percent for vacation Water trips, and 4.0 percent for business-related trips. The number of water desalination plants in Saudi Nonetheless, expenditure on visits to relatives Arabia stood at 33 spread over the eastern and and friends declined by 10.9 percent and on other western coasts, 8 of which were on the Arabian purposes by 14.1 percent. Gulf coast and 25 were on the Red Sea coast. In 2019, the production of desalinated water by On the other hand, expenditure on inbound the Saline Water Conversion Corporation (SWCC) tourism trips went up by 7.8 percent to SAR 100.8 was 1,883.6 million cubic meters versus 1,803.1 billion in 2019 against SAR 93.5 billion in 2018. million cubic meters in the preceding year, with This increase was attributed to expenditure an average daily production of 5.2 million cubic increases of 13.0 percent for tourism trips for meters compared to 5.0 million cubic meters per
31 32 Saudi Arabian Monetary Authority | 56th Annual Report * Estimates. Sour ** Includingairlines,r capacity of 2.30 billion cubic meters. storage 105 sewerage total a with 2019, in 521 to rose Arabia The number ofdamsconstructed across Saudi percent. 23.7 percent and then the Eastern Region with 18.9 with 31.2 percent, followed by Makkah region with first came region Riyadh administrative Arabia, Saudi in by regions consumption for As cubic meters. million 595.4 commercial for while accounted meters consumption cubic billion 2.9 for accounted 2019. consumption Residential inwater regions allfrom sources reached billion 3.5 cubic meters Saudi in consumption water drinking of volume The campaigns. awareness rationalization meters, ofand new the smart ongoing water installation tariff, new the of because 2019 during declined bill consumption water monthly average the that indicate (MEWA) Agriculture and Water Environment, of Ministry the of data addition, In 39.9 millionMWh. energy produced at SWCC’s plants in 2019 reached day inthe preceding year. Theamount ofelectric Source: MAS Centre, Ministry ofTourism. Saudization (%) Total Entertainment services Tourist transportation services** Travel &tourism agencies Restaurants andcafés Accommodation Table 2-4:Direct Jobs inTourism Sector Total Indirect jobs Direct jobs Table 2-5:Expected JobOpportunitiesin Tourism Sector ce: MASCentre, Ministry ofTourism.
ailways, masstransit companies andcar rental companies, excluding taxis. Sub-sector
sewerage connections were installed during2019. 81,441 and constructed, were sewerage networks system of km 1,628 Besides, percent. 56.65 reached coverage service sewerage the 2019, of coverageservice across SaudiArabia. At the end impacts ofwastewater andincrease thesewerage of lines, treatment plants to reduce theenvironmental construction andsubsidiary networks,main andwastewater the and sewerage connections of installation the included projects These 2019. in completed and out carried were billion 4.5 SAR than more of value a with projects hectares, of which fodder cultivation constituted cultivation fodder which of hectares, thousand 843 reached Arabia Saudi in vegetables totalcultivatedThe tons. area of fodder, grain and million 1.9 fruit and tons, million 1.5 grain tons, million 1.9 of fodder vegetables tons, million 9.1 reached production that shows production tons. Abreakdownmillion ofagricultural14.4 at for stood volume (GaStat) production agricultural Statistics 2019, by the for Authority issued General estimates latest to According Agricultural Production 530,829 289,491 114,957 12,966 88,275 25,140 2,127 1,418 2017 2023 28.5 709
547,286 298,487 118,941 13,359 90,939 25,560 2018* 2,859 1,906 2028 28.5 953 (Thousand jobs) 57.8 percent, grain 31.9 percent, and vegetables technical specifications, the most prominent of 10.3 percent. At the end of 2018, the total number which is the use of automated (driverless) rail of fruit-bearing palm trees in Saudi Arabia reached systems. The tracks of the train network are Saudi Economy 31.2 million; the number of permanent fruit- distributed among 3 levels: underground lines bearing trees (excluding palm trees) was 20.6 (31 percent of the network), ground-level lines million. (19 percent), and elevated lines (50 percent). In addition, Riyadh Metro has four major stations, Animal Production namely King Abdullah Financial District (KAFD) According to the latest statistics issued by GaStat, Station, STC Station, Qasr Al Hokm Metro Station, Saudi Arabia’s livestock total (camels, sheep, and the Western Station. The stations are located goats, cows and poultry) was estimated at 20.0 in highly populated areas and at the intersection million in 2018, increasing by 1.1 percent over the of train and bus tracks. They also offer various preceding year. services supporting the public transport system. The project includes 25 car parking sites with Transport and Communications different capacities, ranging from 200 to 1000 The transport, storage and communications vehicles. Riyadh Metro project also has 7 housing activity contributed 6.24 percent of real GDP and maintenance centers (depots) as well as a at constant prices or SAR 163.6 billion in 2019 center for control and operation of the public compared to 5.92 percent in the previous year. transport system in Riyadh. Moreover, the Riyadh Bus project is being currently carried out to achieve Transport optimal integration between the metro and bus Transport operations (including inter-city travel in networks and facilitate their use instead of using Saudi Arabia and overseas travel by air, land and private transportation to move within the city. This sea) recorded a rise of 2.9 percent in 2019. The project includes 650 sites across Riyadh for the number of passengers rose to 111.0 million from construction of the bus network. A total of 80 bus 107.9 million in the preceding year (Table 2-6). routes, spread over 1,900 km, will cover all districts of Riyadh. According to its latest data, the Ministry of Transport (MoT) carried out many significant As regards the latest railway project projects during 2018, including the construction developments, the latest data issued by the of roads totaling 737.3 km, of which 54.7 km were Transport General Authority indicate the start highways, 12.7 km were secondary roads, 524.9 km of the study phase of the Saudi Landbridge were feeder roads, and 145 km were paved roads. Project connecting Saudi Arabia’s ports on the A number of construction projects are underway, Arabian Gulf coast with its ports on the Red Sea totaling 11,913 km with a cost exceeding SAR 39 coast. Further, the GCC Railway project is being billion. currently carried out. As part of the project, the construction work of the 187km railway linking According to data and information issued by the Ras Al Khair, Jubail Industrial City and Dammam Royal Commission for Riyadh City regarding King has started. As for southern roads project, Abdul Aziz Project for Public Transport in Riyadh, the Transport General Authority is currently Riyadh Metro project consists of 85 stations with updating the comprehensive plan of the project. 6 lines of metro network of 176 km. The design of It also works, in cooperation with the National all its elements is in accordance with high-quality Center for Privatization and PPP (NCP), on setting
33 34 Saudi Arabian Monetary Authority | 56th Annual Report Source: Ministry ofTransport, General AuthorityofCivilAviation, SaudiRailways Organization &Saudi PortsAuthority. drainage systems, construction ofdrainage power storm construction systems, of establishment 2019. infrastructure, ports’ of beginning the involvedThey development and of upgrade since out been carried have projects 31 (MAWANI), Authority According to the data of the Saudi Ports flyadeal. and Airlines, (Saudia),Airlines NesmaAirlines, SaudiGulf flynas, Arabia reached 5, namely the Saudi Arabian Saudi in operate to licensed airlines national number of the Furthermore, 2020. of end the by operation full to return to expected andis Terminal1 completed, was Airport International Aziz Abdul King at Terminal1 of project development being the of percent are Moreover,93 upgraded. currently Airport International Khalid King at projects. In addition,some international terminals are witnessing airports).expansion Three domestic airports domestic 13 and airports, regional 8 in operating (7 international28at stood airports, Arabia Saudi airports of number the (GACA), Aviation information Civil of Authority and General the by issued data latest the to According weight measurement and monitoring service. truck provide to qualified were companies 30 In 2019, and services. to deliver partner projects would as engage astrategic the private sector which projects, transport public for mechanism framework anda regulatory an implementation Total Maritime transport International transport Inter-city transport Railways Land transport Air transport Table 2-6:Transport ofPassengers Type oftransport No. ofpassengers f . mlin asnes n 2019. in passengers million 1.3 of was 12,731ships docked at ports atotal carrying reached 262 million tons in 2019. The number of that the total volume of cargos handled at ports Data also show preparednessof at fire seaports. and alarmprotection to systems raise the level gaps, and development security filling of fire and increasingsystems, docks the depth of port plants, development network of electrical pushing Saudi Arabia to rank 13 percent, 18.4 by increased use internet The users. internet in increase significant a and technology index the owing tothe deployment rapid ofbroadband of pillar ICT the on places has 16 jumped Arabia Saudi that show (MCIT) Technology Information and Communications of Global Ministry data of the the The latest by 2019. Index indicated Competitiveness as (ICT) technology communications and information of adoption the the of terms to in made Arabia Saudi progress significant contribution its technology was 2019 during information sector and communications ofOne the prominent most achievements of the Technology Telecommunication andInformation os n h sector. the in jobs new billion and create 50 by 25,000 SAR the sector for GDP cumulative the raise to aims that strategy sectoral five-year a approved and prepared also (Million) 107.9 2018 99.8 1.3 5.1 1.7 6.8 -- No. ofpassengers (Million)
111.0 102.9 2019 1.3 5.1 1.8 6.8 th -- globally. MCIT According to data of the Communications and representing Saudi Arabia in domestic, regional Information Technology Commission (CITC), the and international bodies concerned with the post number of working landline telephones in Saudi sector. Additionally, the resolution stipulated that Saudi Economy Arabia was 3.1 million at the end of 2018, with the Communications and Information Technology the household penetration rate reaching 31.8 Commission has the regulatory and supervisory percent. Residential subscriptions accounted for powers over this sector. CITC is responsible for the 55.3 percent while the business sector accounted governance of the post sector and establishment for 44.7 percent of total working landlines. of the rules, principles and conditions for the The number of subscriptions to mobile phone universal access and universal service. During 2019, services reached 41.3 million at the end of 2018, the regulatory responsibilities were separated with household penetration rate reaching 126.9 from the operating ones in the post sector. percent. Prepaid subscriptions constituted 68.8 Besides, CITC registered 40 companies providing percent, and postpaid subscriptions constituted delivery services through apps. It also completed 31.2 percent of total subscriptions. the preparation of the “Rules for Protecting the Rights of Postal Service Beneficiaries”, in addition In addition, the number of broadband to launching the Postal Call Center. It is expected subscriptions through landlines (DSL, WiMAX, that these efforts will raise the contribution of optical fiber, and other wired lines) reached 1.9 the post sector to the total GDP and will support million, with household penetration rate standing e-commerce growth. at 33.7 percent. The total number of subscriptions to broadband services through mobile networks E-Commerce was 29.1 million, with a population penetration According to the latest data issued by the Ministry rate of 89.5 percent (Table 2-7). Moreover, the of Communications and Information Technology, Internet penetration rate in Saudi Arabia grew to Saudi Arabia occupied an advanced position 95.7 percent at the end of 2019 as per the latest among the top 10 fastest growing e-commerce date of the Ministry of Communications and markets. The e-commerce market size in Information Technology. Financial statements of Saudi Arabia exceeded SAR 20 billion in 2019, telecommunication companies show that they registering a growth of 17.7 percent over the yielded total direct revenues of SAR 76.6 billion previous year. It constituted 4.3 percent of total from their operations in Saudi Arabia in 2019, a 6.7 commercial transactions in the retail sector, and percent rise over the previous year (Chart 2-1). it is expected to reach 6.5 percent by 2023. The value of e-commerce transactions via “mada” and Saudi Post “atheer” services grew by 100 percent and 600 As part of the legislative and regulatory reforms percent, respectively, in 2019. of the post sector, the Council of Ministers issued a resolution giving the Ministry of Education, Health and Social Services Communications and Information Technology Public Education the task of supervising the post sector. MCIT The total number of public education students is also tasked with setting the sector’s general (males and females) amounted to 5.8 million policies and development plans, proposing during the academic year 2018/2019. The number its draft laws and any amendments to them, of teachers (males and females) at all levels coordinating with relevant authorities regarding of public education (including kindergarten, services provided for government entities, and elementary, intermediate and secondary schools;
35 36 Saudi Arabian Monetary Authority | 56th Annual Report Source: Communications andInformation TechnologyCommission. (54.5 percent) ofwhichwere girls’schools. of number the schools stood at 23.1thousand,12.6thousand addition, In thousand. 493.2 totaled education) special and education; adult were at the bachelor’s level, 32.7 percent at the at percent 32.7 level, bachelor’s the those at were of percent 63.0 thousand; 381.8 totaled students at various institutions of higher education at 1.65million.Thenumber ofnewly-enrolled stood2018/2019 yearacademic the Arabiaduring in Saudi institutions education higher in enrolled females)and students(males of totalnumber The Higher Education Table 2-7:2018Communication by Services Region Makkah Riyadh Madinah Eastern Region Qassim Total Jawf Baha Najran Jazan Northern Borders Region Hail Tabuk Asir