Saudi Gazette report

RIYADH — Minister of Finance Mohammed Al-Jadaan confirmed that the total assets of the banking sector amounted to SR3.5 trillion until the end of Q2 of 2022. Saudi Arabia aims to increase the total to more than 4.5 trillion by 2030.

The growing strength of the Saudi economy reflects the solidness of financial policies, and its ability to adapt in the face of challenges, Al-Jadaan said, while praising on the positively and effectively results that achieved by the programs of: The Financial Sector Development Program (FSDP); The Financial Sustainability Program; The National Center for Privatization (NCP) Program.

He noted that the Financial Sector Development Program has successfully increased the number of the bodies who are effective in financial technology to more than 120 companies until September of the current year.

It has also contributed in growing Venture Capital by 244%. In addition to that, the program's initiative achieved the progress of Saudi Arabia's position in global competitiveness indicators.

As for the financial sustainability program, Al-Jadaan noted that the program's initiatives have played a major role in carrying out many structural reforms.

This is in addition to contributing to raising growth and employment rates, and maintaining financial sustainability, through which financial and economic stability would be achieved, he added.

Al-Jadaan confirmed that the initiatives launched by the financial sustainability program had a positive impact on Fitch's credit rating, as Saudi Arabia was placed at "A", which resulted in amending the Kingdom's future outlook from "stable" to "positive".

In regard to local content, he said that the initiatives have successfully contributed to a qualitative shift in the management of the state's public finances, as it led to raising the GDP growth rate to about 3.2% in 2021. In addition to achieving high growth rates during the first half of 2022.

Al-Jadaan said that the real GDP has achieved a growth of about 11%, supported by a growth in non-oil activities by about 5.9%.

The financial sustainability program contributed to the development and launch of financial systems and reforms, Al-Jadaan said, stressing that it also helped improve e-services, as the program launched the “Etimad” platform.

Etimad contributed greatly to facilitating the procedures of financial transactions with the private sector.

Al-Jadaan confirmed that the number of private sector entities registered on the Etimad platform until the end of August 2022 has reached more than 81,000 entities, noting that disbursement procedures for 1.53 million payment orders had been completed.

He also added that the financial sustainability program seeks, in the coming years, to implement the multi-year budget through the medium-term financial planning initiative.