Front cover image for The Saudi Arabian Economy : Policies, Achievements, and Challenges

The Saudi Arabian Economy : Policies, Achievements, and Challenges

The Saudi Arabian economy has changed almost beyond recognition since the oil boom days of the 1980s, and the Kingdom itself has changed too economically, socially, and demographically. In the second edition of The Saudi Arabian Economy, Mohamed Ramady uses several overlapping themes to establish and develop a framework for studying the fundamental challenges to the Saudi economy. Particular attention is paid to the benefits of short-term planning and long-term diversification intended to shield the economy from potentially de-stabilizing oil price fluctuations and the pace and diversity of domestic reforms. The author examines the core strengths and evolution of various financial institutions and the Saudi stock market in the face of globalization, before analyzing the private sector in detail. Topics discussed include: • The hydrocarbon and minerals sector, including the emergence of the competitive petrochemical sector • The impact of small and medium sized businesses and the evolving role of "family" businesses • The growing role of women in the Saudi economy • The role of privatization and FDI as engines of change and the position of public-private-partnerships • The establishment of a foundation for a knowledge-based economy Finally, the author offers an analysis of the key challenges facing the Saudi economy, paying particular attention to the potential costs and benefits of globalization, and membership in the WTO. Employment, education, economic and social stability, and Saudi Arabia's place in the Gulf Cooperation Council, as well as Saudi Arabia's evolving strategic economic relations with China and other countries are offered as keys to the consensus building needed to ensure the Kingdom's healthy economic future. Mohamed Ramady is Visiting Associate Professor at the Department of Finance and Economics, King Fahd University of Petroleum and Minerals. His main research interests are the economies of the Middle East and Saudi Arabia in particular, as well as money and banking. He also held senior positions with international financial institutions in the Arabian Gulf and Europe
eBook, English, 2010
Springer, Dordrecht, 2010
1 online resource (515 pages)
9781441959874, 9781441959867, 1441959874, 1441959866
1058163100
Preface; Acknowledgements; Abbreviations; Part I The Setting; 1 Overview; Introduction; Setting the Stage; The Financial Sector; The Heart of the Kingdom: The Hydrocarbon Sector; The Foreign Sector; Meeting Future Challenges; Conclusions; Part II The Development Process; 2 Reforms and Economic Planning; Difficult Decisions Being Taken; Economic Diversification Remains Critical; Reforms at Centre Stage; Transforming the Judicial System; National Economic Planning: The Framework; Strategic Choices; The History of Saudi Planning; Plan Achievements; The Performance of the Saudi Economy. Economic Diversification: RealitiesComposition of Saudi GDP; The Challenges Ahead; Conclusion; Summary of Key Points; 3 Public Finance; Overview; The Budget A Barometer of the Nations Health; Oil Wealth versus Oil Poverty; Saudi Windfall Gains and Losses; Overdependence on Oil versus Building True Wealth; The Saudi Budgetary System: Signals versus Reality; Budget Sectoral Allocations: Government Intentions Are Revealed; Capital Expenditure Assumes More Importance; Limited Sources of Income Is Key Constraint; Income Diversification Is Not Easy. Despite Lower Oil Price, Bumper Expenditure ContinuesFinancing Budget Deficits: Cyclical or Structural Deficits?; Burden of Indebtedness and Debt-Led Growth; Crowding Out the Private Sector; Facing the Challenges: Short- and Long-Term Solutions; The Time for Rhetoric Is Over; Hopeful Future; Summary of Key Points; Part III The Financial Sector; 4 Saudi Arabian Monetary Agency (SAMA) and Monetary Policy; Learning Outcomes; Introduction; Asserting Independence; SAMAs Stated Functions; SAMAs Evolving Responsibilities; Central Bank Monetary Policy; Structure of the Saudi Financial System. Central Bank Monetary Policy: The TheorySaudi Monetary Policy in Practice; The Centrality of SAMA's Exchange Rate Policy; Saudi Banks Have Ample Reserves; Reliance on Open-Market Operations; Money Supply Creation and Monetary Policy; Composition of Saudi Arabias Money Supply; Financial Deepening of the Saudi Economy; SAMA and Inflation Control Policies; The Economic and Social Impact of Inflation; Managing the Kingdoms Reserves; Future Development and Challenges; Summary of Key Points; 5 The Financial Markets; Learning Outcomes; Introduction; The Saudi Banking Sector. SAMA and Bank SupervisionThe Early Years (1940s
1960s): Infancy Period; The 1970s: The Adolescence Period; Coming of Age in the 1980s: Young Adulthood; The 1990s and the Period of Maturity; 2000 Onwards; Saudi Bank Shareholder Concentration and Ownership; Performance of the Saudi Banks; Concentration Ratios Are Worrying for Competition; The Rush to Segmentation; Saudi Banks Lending Profile; Asset-Liability Management Is a Problem; Saudi Banks Sectoral Lending: Consumer Lending Takes Off; The Emergence of the Insurance Sector; Foreign Participation in the Insurance Sector
Islamic Finance in the Kingdom
English