October 21, 2005

THE CUSTODIAN OF THE TWO HOLY MOSQUES AND THE CROWN PRINCE RECEIVE THE ANNUAL REPORT OF THE SAUDI ARABIAN MONETARY AGENCY. THE STATE'S GENERAL FINANCE RECORDS A SURPLUS OF 107 BILLION RIYALS. KING ABDULLAH ISSUES HIS DIRECTIVES TO SPEND ON SERVICES FOR THE CITIZENS' WELFARE. PRINCE SULTAN IBN ABDUL AZIZ EXPRESSES HIS GRATITUDE FOR THE EFFORTS EXERTED BY SAMA'S OFFICIALS. Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz received the 41st annual report of Saudi Arabian Monetary Agency which reviewed the local economic developments in the fiscal year 2004 and the latest data of 2005. The report was delivered to King Abdullah Ibn Abdul Aziz by Governor of SAMA Hamad Al-Sayyari. During the meeting, Governor of SAMA delivered a speech on this occasion in which he reviewed the local economic developments. The governor stated that during 2004, the national economy continued achieving high growth results in various sectors for the third consecutive year. He said the national income increased by 16.8% and the real gross domestic product grew by 5.3%. He added that the state's general finance recorded a surplus of 107 billion riyals. He explained that during 2004, the current account of payments balance recorded a surplus of 194.7 billion riyals. King Abdullah Ibn Abdul Aziz commended the annual report and the important role played by SAMA in the Saudi monetary policy. King Abdullah stressed the government's intent to continue economic reform programs and direct spending to long-term productive projects. The king pointed out the importance of the role played by the private sector and the government's efforts to eliminate investment obstacles. Saudi Arabia would continue efforts to attract more foreign investment by revising its regulations. It will also promote small- and medium-scale firms that serve a large number of citizens, Custodian of the Two Holy Mosques King Abdullah said. "The government is making efforts to remove the factors hampering the flow of investment," the king said while receiving the 41st annual report of the Saudi Arabian Monetary Agency (SAMA) for 2004. He said the government was regularly revising its investment policies and regulations. Spelling out the country's major economic achievements in 2004, SAMA Governor Hamad Al-Sayyari said the Kingdom had achieved a record budget surplus of SR107 billion last year as a result of soaring world oil prices. He said the Kingdom's gross domestic product (GDP) grew by 5.3 percent last year. The Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz reaffirmed the Kingdom's resolve to go ahead with its reform programs in order to achieve continuous progress and prosperity. He emphasized the government's policy of increased spending on long-term productive projects that promote prosperity of its citizens, create job opportunities and strengthen the economy. The king praised SAMA's role in drafting and carrying out the Kingdom's fiscal policies in order to achieve monetary stability, strengthen confidence in Saudi riyal, create an economic atmosphere free of inflation and ensure adequate liquidity to meet development requirements. King Abdullah also praised the remarkable progress achieved by Saudi banks, by strengthening their financial position and improving their services, matching international standards. Al-Sayyari predicted that the Kingdom's economy would achieve strong growth this year and in the coming years. "The Kingdom's balance of payments registered a record surplus of SR194.7 billion in 2004," Al-Sayyari said. Finance Minister Dr. Ibrahim Al-Assaf and other top SAMA officials were present during the meeting. Al-Sayyari said during 2004 the Kingdom achieved high economic results in various sectors, for the third consecutive year, thanks to the economic reforms introduced by King Abdullah. "The national revenue grew by 16.8 percent and the actual gross domestic product increased by 5.3 percent in 2004," he said, adding that there was substantial increase in monetary supply and bank loans. "This again shows the dynamic role of the private sector," he pointed out. The Saudi economy is now in a good position heralding a bright future, Al-Sayyari said and stressed the stability of riyal's exchange rate with other currencies. "The cost of living index rose by only 0.3 percent during 2004," he noted. Al-Sayyari remembered the late King Fahd during his presentation and said King Fahd's reign witnessed "the strengthening of Saudi economy, activation of the role of the private sector and increasing prosperity of citizens." Al-Sayyari said a number of international financial organizations had praised the Kingdom's economic performance as well as its economic policies. He also noted the government's efforts to protect the economy from the negative effects of world oil market fluctuations. Last year, while he was crown prince, King Abdullah announced that the government would set aside SR41 billion from the 2004 budget surplus for development projects which have direct bearing on the welfare and prosperity of citizens. He said that a lion's share of the surplus from rising oil prices would go for the repayment of public debts estimated at SR600 billion. Saudi Arabia is expected to register a huge budget surplus in 2005. The Samba Financial Group has predicted that the Kingdom's real GDP growth will be 6.5 percent in 2005 and oil export revenues will be SR589 billion. The budget surplus will be SR191 billion. Samba's Chief Economist Brad Bourland told Arab News that "the oil market has been stronger than anticipated in the third quarter. I may revise estimates upward slightly for 2005." Riyad Bank also expects the GDP growth of 7.6 percent, a budget surplus of SR176 billion and a current account balance of payments SR244 billion this year. Estimates of the International Monetary Fund (IMF) show that Saudi Arabia will post a 4.1 percent GDP growth in 2005 and 3.3 percent in 2006. Current account balance of payments (as percent of GDP) will be 27.7 percent this year and 25.1 percent next year. Crown Prince Sultan Ibn Abdul Aziz, Deputy Prime Minister, Minister of Defense and Aviation and Inspector General, received a copy of the 41st annual report of Saudi Arabian Monetary Agency. The copy of the annual report was delivered to Crown Prince by Governor of SAMA Hamad Al-Sayyari. During the meeting, the Crown Prince thanked the Governor of SAMA for his distinct efforts. The audience was attended by the Minister of Finance Ibrahim Ibn Abdul Aziz Al-Assaf. Meanwhile Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz has sent a cable of thanks to the Minister of Islamic Affairs, Endowments, Dawa (Call) and Guidance Sheikh Salih Ibn Abdul Aziz Al Al-Sheikh and all participants in King Abdul Aziz 27th International Competition for Memorizing the Holy Quran for their good feelings on this occasion. The king's cable was in response to a cable sent by the Minister to the king on the occasion of the conclusion of the competition which was held in Makkah recently. The memorization of the Quran contest was held in Makkah Al Mukkaramah. On behalf of the Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz; Prince Abdul Majeed Ibn Abdul Aziz, the Governor of Makkah region, patronized the final ceremony of the 27th King Abdul Aziz International Contest for the Holy Quran Memorization, Recitation, and Interpretation, organized by the Ministry of Islamic Affairs, Endowments, Call and Guidance. Speaking on the occasion, Minister of Islamic Affairs, Endowments, Call and Guidance Sheikh Saleh Al Al-Sheikh underscored the importance of adherence to the teachings of the Holy Quran. Al Al-Sheikh drew attention to the vicious campaigns which aim at distracting Muslims from the Holy Quran and Sunnah (the Prophet's teachings), and said the Kingdom of Saudi Arabia had successfully confronted all challenges (in this context), and had made it clear that its constitution would be based on the teachings of the Holy Quran and Sunnah. He pointed out that the Holy Quran and Sunnah advocate fighting all forms of terrorism, and said the Kingdom through the implementation of the Islamic Sharia has actually been respecting the human rights. "The Holy Quran which calls for adherence to the teachings of the religion, urges at the same time all Muslims to become strong economically and culturally," he said. "It is high time for others to benefit from the experience of the Kingdom as regards bringing about a fine balance between religious rights and civil rights', he said. On his part, Prince Abdul Majeed Ibn Abdul Aziz said King Abdulaziz had successfully unified the country on the basis of Islam, adding that the Kingdom was the first country in modern times to be established on the Islamic creed and Shariah. He noted that the sons of the late King Abdul Aziz had followed up the footsteps of their great father and reiterated their adherence to the Holy Quran and Sunnah. Prince Abdul Majeed Ibn Abdul Aziz, then, handed over prizes to the winners of this international contest. The winners in the first branch of the contest included Kamil Saud Miteiran Al-Jaffari Al-Anazi from the Kingdom of Saudi Arabia; Ahmad Suleiman Ahmad Hussein from Egypt; Abdul Rahman Abdullah Abdul Hamid Al-Sa'di from Bahrain; Mohammed Zul-Noorein Sarami Abdulwahab from Nigeria, and Mohammed Yahya Mohammed Atef from Yemen. In the second branch, the winners included Abdullah Abdulaziz Al-Suheibani from the Kingdom of Saudi Arabia; Faisal Ahmad Abdul-Hafeez Abdul-Hamid from Bangladesh; Ibrahim Naji Mohammed Al-Osaji from Yemen; Abdullah Atfat Mohammed Kassan from Lebanon and Al-Zein Mohammed Ahmad Al-Zein from Sudan. In the third branch the winners included Hajed Abdel-Hadi Sahal Al-Muheidaly Al-Oteibi from the Kingdom of Saudi Arabia; Mohammed Jamil Laun Thani from Nigeria; Zeinal Abdeen Ashaq from Indonesia; Anas Khalid Khalil Al-Daghamin from Jordan and Sajjad Hassn Wa'ezi from Iran. In the fourth branch, the winners included Hamid Ihsanul-Haq Mohammed Kazim from the Kingdom of Saudi Arabia; Mohammed Thani Laun Thani from Nigeria; Ahmad Amr Al-Seini from Morocco; Mohammed Ali Abdulaziz Ali Al-Deeb from Egypt, and Farouq Islam Hafez Isma'il Farran Ghazi from Bangladesh.