Alkholifey on Opening Up Saudi Markets, Economy

The transcript discusses Saudi Arabia's economic transformation, focusing on foreign bank licensing, monetary policy, and the dollar peg. It highlights the country's approach to managing liquidity and the banking sector, including guidance on construction sector debts. The conversation also covers the transfer of reserves to the Saudi wealth fund and addresses concerns about capital outflow. The discussion concludes with insights into credit growth in the private sector.

What significant change has Saudi Arabia made to its stock market recently?

• It has been digitized completely.

• It has been merged with the UAE stock market.

• It has been opened to foreign investors.

• It has been closed to foreign investors.

How does the Saudi Central Bank decide on licensing foreign banks?

• By random selection from applicants.

• By considering the bank's age and history.

• Based on the bank's financial strength and value added to the economy.

• By prioritizing banks from neighboring countries.

What is Saudi Arabia's stance on the dollar peg?

• They are undecided about it.

• They have already abandoned it.

• They are committed to maintaining it.

• They are considering abandoning it.

What measures has the Saudi Central Bank taken to manage liquidity?

• Stopped monitoring liquidity levels.

• Decreased the reverse repo rate.

• Increased the reserve requirement ratio.

• Intervened in the market to adjust liquidity levels.

What is the exposure of the Saudi banking sector to the construction sector?

• Around 50%

• Exactly 15%

• More than 20%

• Less than 8%

What was the recent decision regarding Saudi reserves?

• To convert reserves into foreign currency.

• To freeze the reserves for a year.

• To transfer 100 billion riyals to the Saudi wealth fund.

• To increase reserves by 100 billion riyals.

How does the Saudi Central Bank view capital outflows?

• As a sign of economic instability.

• As a normal part of a free economy.

• As a reason to impose restrictions.

• As a major concern requiring immediate action.