RIYADH: Economic diversification, rapid technological progress, and a strategic location mean the Middle East and North Africa is a key hub for development, according to the Saudi Central Bank governor.
Speaking in a meeting with the Financial Stability Board Regional Consultative Group for MENA in Riyadh, Ayman Al-Sayari explained that the region holds advantages that remain significant sources for its development, according to a statement.
During the meeting, the governor of the bank – also known as SAMA – highlighted the affirmation of the International Monetary Fund in its Regional Economic Outlook that MENA is resilient to adverse macro-financial risk scenarios.
He went on to stress on the importance of using different approaches of financial stability policies that take into consideration the region’s economic and fiscal circumstances as well as the interconnectedness between its economies.
Al-Sayari also underlined the importance of devising plans that support financial stability and are compatible with the economic and financial conditions of the region and create interrelation between its economies.
The meeting was co-chaired by Al-Sayari and Egypt Central Bank Gov. Hassan Abdulla, and attended by FSB Chair Klaas Knot.
The group members discussed the challenges to global and regional financial stability, which entailed the implementation of the regulatory framework for crypto-asset activities across the world.
It also tackled the lessons learned from the turmoil that affected the global banking sector in 2023 as well as the financial risks arising from the high interest-rate environment and non-bank financial intermediation.
In addition to this, members received an update on the FSB’s program for 2024 and examined the group’s report on the initial lessons learned from the banking disturbances in 2023.
According to a report by Franklin Templeton’s Emerging Markets Equity Group released in April 2023, the economies of the region are experiencing a revival in growth driven by mega-investment projects, rising energy prices, greater fiscal prudence and better demographics
This comes as the Gulf Cooperation Council countries, particularly Saudi Arabia which is the largest economy in the region, has significant expenditure plans.
The Saudi government has stated its goal to invest nearly $2 trillion in the domestic sector from 2023 until the end of this decade as part of its Vision 2030 economic reform strategy.
Giga-projects, the report noted at the time, have served as a key pillar of the region’s multi-year reform effort.
