By identifying potential weaknesses and fixing them – diversifying a previously oil-reliant economy and encouraging growth in the private sector – Saudi Arabia has managed to sustain a growing economy, even through times of economic and political turmoil.
Middle East
Latest articles from Middle East
Kuwait's growth challenge
April 2, 2012Home to an estimated 9% of the world’s total oil reserves, Kuwait posted its 12th consecutive budget surplus of $18.9bn in 2011. But while the country's coffers are flush with cash, continued political infighting has stymied development, leaving the economy overly reliant on the oil sector and the country's basic infrastructure in need of improvement.
Saudi Arabia's banking sector hits new heights
April 2, 2012Loans are up, deposits are growing and profits are healthy in Saudi Arabia's banks. But with growth opportunities in Islamic finance and a low proportion of home ownership in the country, there are still many more lucrative areas for these institutions to tap.
Kuwait's banks play the waiting game
April 2, 2012Kuwait's banks are struggling to recover from the significant losses made in 2008 and 2009, suffering with high levels of non-performing loans and a dearth of lending opportunities. The government's economic development plan was designed to both offer a lifeline to the banking sector and diversify the country's oil-reliant economy, but while banks are keen to get on board with the various projects, political indecision is slowing their progress.
Will Kuwait's stock exchange watchdog show its teeth?
April 2, 2012In an attempt to tighten its regulatory framework and instil greater confidence in investors, Kuwait’s parliament has approved its first independent capital markets regulator for the Kuwait Stock Exchange. Only time will tell if the move can resuscitate the market.
Crisis forces regulation refocus in UAE
February 1, 2012The events triggered by the 2008 global financial crisis have ushered in a new wave of banking regulation in the United Arab Emirates and led to a greater focus on risk management. While UAE banks now boast some of the highest capitalisation levels in the world, the biggest challenge facing the sector as a whole is that of tightening liquidity.
Latam banks lead the liquidity league
January 25, 2012Latin American banks dominate the rankings for deposits with the central bank, providing large liquidity cushions in their countries if needed.
Iranian investment banking market is still left wanting
December 1, 2011Since awarding the first dedicated investment banking licence in Iran in 2007, the country's Securities and Exchange Organisation has moved slowly, granting only two more licences despite the proliferation of banks looking to expand into the space. But licences are not the only thing lacking in Iranian investment banking; the dearth of large private companies and investment banking expertise is also stunting its growth.
Sanctions leave Iran's banks short on partners and profits
December 1, 2011The Iranian government is insistent that the growing number of sanctions on the country is not having a detrimental effect on the country's economy. Yet, with its banks limited by the financial instruments they can use and the international banks that they can partner, it is proving increasingly difficult for them to remain profitable.
Lebanon central bank governor stays calm amid crises
November 1, 2011The governor of Banque du Liban's conservative approach has set Lebanon on a firm post-crisis footing, and has enabled the country's banking sector to ride out the 'Arab Spring' uprisings in the Middle East and north Africa with relative ease.