With minimal growth and a hefty deficit expected in 2016, the Saudi Arabian government knows it must act fast to reverse the downward trend. James King looks at the raft of measures the country is putting in place to become less reliant on oil and achieve long-term growth.
Saudi Arabia has accepted that fundamental change is needed to deal with its budget deficit and is stepping up to the challenge with a long-term plan that includes privatisation, cuts to subsidies, boosting religious tourism and creating a more diversified economy. James King reports on its progress.
Well capitalised with low non-performing loan ratios and strategically diverse business lines, Saudi Arabia's banks have weathered the country's economic slowdown well. Now, with the economic backdrop unlikely to change in their favour, these lenders are looking at ways to remain profitable in the long term.
The vice-governor of the Saudi Arabian Monetary Agency, Abdulaziz Saleh Al-Furaih, is happy for the central bank to maintain low interest rates and a consistent policy on the riyal. He tells James King of his plans for SMEs, the low oil price environment and what the future holds for the country's banking sector.
Regional unrest, low oil prices, the lifting of sanctions in Iran and an uncertain global economy have all contributed to the difficulties that the Tadawul, Saudi Arabia's stock exchange, is experiencing. However, reforms within the exchange, and the country at large, provide hope for the future.
The countries of north Africa have been proving attractive for lenders from the Gulf region for decades, but in recent years this activity has picked up, with Egypt a particularly popular destination. Tom Stevenson looks at the reasons why Gulf banks are heading west.
US shale production has significantly altered the landscape of the global energy market. Ahead of the Institute of International Finance's annual spring meeting in Qatar, James King looks at how OPEC is responding to this seismic shift.
The Middle East's private equity market had a successful year in 2014, with several notable deals, a number of vehicles closing their fundraising and increased international interest in the market. James King investigates how likely it is that its popularity will extend into 2015.
There are commentators within the country who claim that the Saudi Arabian economy and its banking environment may well be the best in the world, with strong profits, a high level of capital investment and robust demographics. But there are concerns that small and medium enterprises do not have enough access to lending, providing a new focus for bank efforts.
Despite a drop in oil revenues, Saudi Arabia’s economy remains the envy of most countries in the world, boosted by government spending and the vibrant non-oil private sector. Not satisfied with this, the government is instigating major social reforms in the labour market and in education.
The growth that has characterised the rise of the Islamic finance industry has thus far evaded the asset management segment of the market, with a dearth of institutions focused on the creation of sharia-compliant investment products. John A Sandwick of Islamic Wealth & Asset Management assesses the situation.