ANNUAL Report 57th 2021

ANNUAL
REPORT
1442H | 2021
Saudi Central Bank
57th Annual Report

1442H (2021)
BOARD OF DIRECTORS
SAMA
1.The Governor, Dr. Fahad A. Al-Mubarak

Chairman
2. The Vice Governor, Ayman M. Al-Sayari

Vice Chairman
3. Mr. Hamad S. Al-Sayari
4. Mr. Abdulaziz M. Al-Athel
5. Mr. Khaled A. Al-Juffali
4
Fahad A. Al-Mubarak It gives me pleasure to present, in the name of
Governor and Chairman the Board of Directors, the 57th Annual Report
of the Saudi Central Bank, which reviews the
latest developments in the Saudi economy during
Ramadan 1442H
fiscal year 2020 (1441/42H). The Report covers
May 2021
developments in various areas of the domestic
economy, including monetary developments,
banking activity, capital market, prices, public
finance, national accounts, foreign trade and
balance of payments. It also provides an overview
of the latest economic developments in various
domestic productive sectors, apart from giving
a full description of SAMA’s functions, such
as setting and managing monetary policy and
supervising banking, insurance and finance
sectors. Furthermore, the Report includes the
auditors’ report on SAMA’s balance sheet for
fiscal year ended on June 30, 2020. In addition
to data issued by SAMA, the Report mainly
relies on official data obtained from ministries,
government departments and public entities, to
which I would like to extend my sincere gratitude
and appreciation for their cooperation in providing
valuable information and data that enabled SAMA
to prepare this Report. I also would like to thank
SAMA staff members for their efforts in preparing
this Report and in carrying out all functions
entrusted to SAMA.
5
For correspondence and inquiries: SAMA Head Office and Branches:
Postal address: Head Office

Saudi Central Bank Riyadh
Economic Research and Reports Department
P.O. Box 2992, Riyadh 11169 Branches:
Kingdom of Saudi Arabia Makkah
Madinah
Telephone: (+966) 11 - 4633000 Riyadh
Email: research@sama.gov.sa Jeddah
Dammam
For the latest reports, instructions issued to financial Ta’if
institutions supervised by SAMA, monetary and banking Buraydah
statistics, and quarterly balance of payments estimates, Jazan
please visit SAMA’s website at: Tabuk
http://www.sama.gov.sa Abha
6
CONTENTS
01 Global Economy and International Cooperation 9
02 Saudi Economy 26
03 Energy, Industry and Mineral Resources 44
04 National Accounts and Sectoral Development 56
05 External Sector 64
06 Public Finance 79
07 Consumer Price Index 85
08 Monetary Developments 91
09 Banking Sector 101
10 Insurance and Finance 117
11 Capital Market 129
12 SAMA Achievements and Aspirations 143
13 SAMA Balance Sheet 167
7
1
GLOBAL
ECONOMY AND
INTERNATIONAL
COOPERATION
Saudi Central Bank | 57th Annual Report
the Middle East and North Africa (MENA) countries

decreased by 2.9 percent in 2020 compared to
Global Economy and a growth of 1.4 percent in the preceding year.
International Cooperation
Emerging and developing Europe registered a
contraction rate of 2.0 percent against a growth
rate of 2.4 percent in the preceding year. Moreover,
Latin America and the Caribbean economies shrunk
World Economic Situation by 7.0 percent in 2020 compared to a growth of 0.2
In 2020, the global economy contracted by 3.3 percent in 2019. The economies of emerging and
percent against its growth rate of 2.8 percent in developing Asia declined by 1.0 percent in 2020
2019, due to the COVID-19 pandemic repercussions. compared to a growth rate of 5.3 percent in 2019.
According to the April 2021 IMF World Economic
Outlook (WEO), the global economy, however, is According to the WEO report, the global economy
expected to recover and grow by 6.0 percent in is expected to recover and grow by 6.0 percent in
2021. 2021 compared to a 3.3 percent contraction in 2020,
and advanced economies are expected to grow by
Economic Growth 5.1 percent in 2021. The US economy is expected
Advanced economies recorded a 4.7 percent to rise by 6.4 percent and that of the euro area
contraction in their real GDP in 2020 against a by 4.4 percent. Emerging market and developing
growth of 1.6 percent in 2019. The US economic economies are expected to grow by 6.7 percent in
growth went down by 3.5 percent in 2020 compared 2021 as China is expected to register a growth rate
to a growth of 2.2 percent in the preceding year. of 8.4 percent in 2021 (Table 1.1). Chart 1.1 shows
The economies of the euro area also contracted by the real GDP growth rates in the major countries
6.6 percent in 2020 against a growth of 1.3 percent and country groups during 2017-2021.
in the preceding year. France, Germany and Italy
witnessed contraction rates of 8.2 percent, 4.9 Inflation
percent and 8.9 percent, respectively, compared In advanced economies, the inflation rate declined
to growth rates of 1.5 percent, 0.6 percent and to 0.7 percent in 2020 compared to 1.4 percent in
0.3 percent in the preceding year. Moreover, in 2019, and it is expected to rise by 1.6 percent in
the United Kingdom, the economy shrunk by 2021. In the United States, the inflation went down
9.9 percent in 2020 compared to a growth of 1.4 from 1.8 percent in 2019 to 1.2 percent in 2020,
percent in 2019. The Japanese economy also and it is expected to rise to 2.3 percent in 2021.
recorded a contraction rate of 4.8 percent against In the euro area, the inflation rate decreased from
a growth of 0.3 percent in 2019. 1.2 percent in 2019 to 0.3 percent in 2020 but is
expected to increase to 1.4 percent in 2021. As for
In addition, emerging market and developing the emerging market and developing economies,
economies contracted by 2.2 percent in 2020 the inflation rate remained stable at 5.1 percent
against a growth rate of 3.6 percent in 2019. The in 2020 as in the preceding year. However, it is
growth rate in China slowed down to 2.3 percent expected to decrease to 4.9 percent in 2021.
against a growth of 5.8 percent in 2019. By contrast, The inflation in the MENA countries rose to 10.2
India recorded a sharp contraction of 8.0 percent percent in 2020 compared to 7.4 percent in 2019
compared with a growth of 4.0 percent in the and is expected to reach 11.2 percent in 2021
preceding year. The growth rate in economies of (Table 1.2). Chart 1.2 shows the percentage change
10
Global Economy and International Cooperation
in consumer prices for various groups of countries increased to 6.6 percent in 2020 from 4.8 percent
during 2019-2021. in 2019. In the United States, it went up to 8.1
percent in 2020 from 3.7 percent in 2019. In the
Unemployment euro area, it increased from 7.6 percent in 2019
The unemployment rate in advanced economies to 7.9 percent in 2020. However, unemployment
Chart 1.1: Real GDP Growth Rates
10
8
6
4
2
Percentage
-2
-4
-6
2017 2018 2019 2020 2021 (Projections)
Advanced economies Emerging & developing countries Middle East & North Africa China
Table 1.1: Real GDP Growth Rates

(Percentage)
Projections
2014 2015 2016 2017 2018 2019 2020
2021
World 3.6 3.5 3.3 3.8 3.6 2.8 -3.3 6.0
Advanced economies 2.1 2.4 1.8 2.5 2.3 1.6 -4.7 5.1
USA 2.5 3.1 1.7 2.3 3.0 2.2 -3.5 6.4
Euro area 1.4 2.0 1.9 2.6 1.9 1.3 -6.6 4.4
Germany 2.2 1.5 2.2 2.6 1.3 0.6 -4.9 3.6
France 1.0 1.1 1.1 2.3 1.9 1.5 -8.2 5.8
Italy 0.0 0.8 1.3 1.7 0.9 0.3 -8.9 4.2
Japan 0.3 1.6 0.8 1.7 0.6 0.3 -4.8 3.3
UK 2.9 2.4 1.7 1.7 1.3 1.4 -9.9 5.3
Canada 2.9 0.7 1.0 3.0 2.4 1.9 -5.4 5.0
Emerging & developing economies 4.7 4.3 4.5 4.8 4.5 3.6 -2.2 6.7
Sub-Saharan Africa 5.1 3.2 1.5 3.1 3.2 3.2 -1.9 3.4
Emerging & developing Asia 6.9 6.8 6.8 6.6 6.4 5.3 -1.0 8.6
China 7.4 7.0 6.9 6.9 6.7 5.8 2.3 8.4
India 7.4 8.0 8.3 6.8 6.5 4.0 -8.0 12.5
Middle East & North Africa 3.3 2.8 4.7 2.5 2.0 1.4 -2.9 3.7
Emerging & developing Europe 1.8 1.0 1.9 4.1 3.4 2.4 -2.0 4.4
Russia 0.7 -2.0 0.2 1.8 2.8 2.0 -3.1 3.8
Latin America & the Caribbean countries 1.3 0.4 -0.6 1.3 1.2 0.2 -7.0 4.6
Brazil 0.5 -3.5 -3.3 1.3 1.8 1.4 -4.1 3.7

Source: World Economic Outlook (WEO), IMF, April 2021.
11
in Italy and France slightly declined to 9.1 percent percent in 2020. The deficit in the euro area also
and 8.2 percent in 2020 compared to 9.9 percent went up from 0.6 percent to 7.6 percent in 2020,
and 8.5 percent in 2019, respectively. In the United as the deficits increased in France and Italy from
Kingdom, the rate went up to 4.5 percent from 3.8 3.0 percent and 1.6 percent in 2019 to 9.9 percent
percent in 2019. Furthermore, the unemployment and 9.5 percent in 2020, respectively. Germany also
rate in Japan slightly increased to 2.8 percent in recorded a deficit of 4.2 percent in 2020 compared
2020 against 2.4 percent in the preceding year to a surplus of 1.5 percent in 2019. Moreover, the
(Table 1.3). Chart 1.3 shows average unemployment deficit in the United Kingdom rose from 2.3 percent
rates for selected groups of countries during 2018- in 2019 to 13.4 percent in 2020. Similarly, the deficit
2020 and expected unemployment rate in 2021. in Japan increased from 3.1 percent in 2019 to 12.6
percent in 2020 (Table 1.4).
Fiscal Balances in Advanced Economies
The overall fiscal deficit in advanced economies rose Monetary and Financial Developments
to 13.2 percent of GDP in 2020 from 3.7 percent Interest Rates
in 2019 as a result of COVID-19 repercussions on The six-month dollar LIBOR stood at 0.7 percent in
the economic activity. In the United States, the 2020 against 2.3 percent in 2019 and is projected to
deficit increased from 5.7 percent in 2019 to 15.8 fall to 0.3 percent in 2021. The Japanese yen LIBOR
Chart 1.2: Change in Consumer Prices in Selected Countries

Chart 1.2: Change in Consumer Prices in Selected Countries
12
10
8
Percentage
6
4
2
0
2019 2020 2021 (Projections)
Advanced economies Middle East & North Africa Emerging & developing economies
Table 1.2: Inflation and Interest Rates

(Percentage)
Projections
2019 2020
2021
Global inflation
Advanced economies 1.4 0.7 1.6
USA 1.8 1.2 2.3
Euro area 1.2 0.3 1.4
Emerging & developing economies 5.1 5.1 4.9
Middle East & North Africa 7.4 10.2 11.2
London interbank offered rate (LIBOR)*
U.S. dollar deposits 2.3 0.7 0.3
Japanese yen deposits 0.0 0.0 -0.1
Euro deposits -0.4 -0.4 -0.5

*Six-month rate for USA and Japan and three-month rate for Euro area.
12
remained at zero in 2020 and is projected to fall to between the European Union and the United
-0.1 percent in 2021. The three-month euro LIBOR Kingdom also supported the exchange rates of the
remained at -0.4 percent at the end of 2020 and is euro and the sterling pound against the U.S. dollar.
projected to decline to -0.5 percent in 2021 (Table In 2020, the exchange rates of the euro, sterling
1.2). pound, Japanese yen and Chinese yuan against
the U.S. dollar rose by 8.2 percent, 2.9 percent, 5.3
Exchange Rates percent and 6.7 percent, respectively.
Despite the rise of the U.S. dollar exchange rate
due to the pandemic in March 2020, the U.S. dollar Equity and Bond Markets
recorded relatively low bilateral exchange rates Equity Markets
against some major currencies at the end of 2020 Global equity indices showed different
as compared to the end of 2019. This decline is performance by the end of 2020 compared with
attributable to several factors, the most important their performance by the end of 2019. The U.S. Dow
of which is the improved investors’ sentiment after Jones Industrial Average (DJIA) index went up by
global pharmaceutical companies and research 6.8 percent to close at 30,606.48 points at the end
universities announced that they had completed of the year. The Japanese Nikkei index increased
clinical trials of the coronavirus (COVID-19) vaccine by 18.4 percent to close at 27,668.15 points. The
and obtained the necessary licenses. The European Morgan Stanley Capital International Europe Index
leaders’ final agreement on the future relationship (MSCI Euro) rose by 3.0 percent to close at 1,840.22.
Chart 1.3: Unemployment Rates

Chart 1.3: Unemployment Rates
10
8
Percentage
0
2018 2019 2020 2021 (Projections)
Euro area Advanced economies
Table 1.3: Advanced Economies: Unemployment Rates

(Ratio to labor force)
Projections
2018 2019 2020
2021
Advanced economies 5.1 4.8 6.6 6.2
USA 3.9 3.7 8.1 5.8
Euro area 8.2 7.6 7.9 8.7
Germany 3.4 3.2 4.2 4.4
France 9.0 8.5 8.2 9.1
Italy 10.6 9.9 9.1 10.3
Japan 2.4 2.4 2.8 2.8
UK 4.1 3.8 4.5 6.1
Canada 5.9 5.7 9.6 8.0

13
This performance was generally attributed to the In Japan, bond yield rates remained negative for all
economic policies taken by governments and maturities of less than 10 years. The one-month
central banks to maintain ample liquidity and credit and 9-year bond yields stood at -0.12 percent and
levels in the markets. In addition, the effectiveness -0.03 percent, respectively, at the end of 2020.
of vaccines developed by global pharmaceutical Moreover, the euro area government bond yields
companies led to a decline in concerns about the of all maturities fell as Germany recorded rates of
slowdown in global economic growth. In the United -0.83 percent, -0.57 percent and -0.16 percent for
Kingdom, the Financial Times Stock Exchange 100 maturities of one month, 10 years and 30 years,
Index (FTSE 100 Index) declined by 16.8 percent to respectively. Italy recorded rates of -0.65 percent,
6,460.52, recovering partially from the significant 0.54 percent and 1.42 percent, respectively, for the
losses incurred at the start of the pandemic. same maturities at the end of 2020.
Bond Markets World Trade and Balances of Payments

Yields on government bonds in the major advanced The world trade volume dropped by 8.5 percent
countries went down as a result of expansionary in 2020 against a growth rate of 0.9 percent in the
monetary policies, especially the execution of preceding year, but it is projected to rise by 8.4
quantitative easing during the COVID-19 pandemic. percent in 2021. Exports of goods and services in
Yields on U.S. treasury bonds of all maturities ranging advanced economies registered a decline of 9.5
from one month to 30 years declined, registering percent in 2020. However, the volume of such
rates between 0.43 percent and 1.65 percent at exports is projected to rebound by 7.9 percent in
the end of 2020 compared to rates between 1.45 2021. Exports of emerging market and developing
percent and 2.39 percent at the end of 2019. In economies decreased by 5.7 percent in 2020, but
the United Kingdom, government bond yields of all their volume is projected to increase by 7.6 percent
maturities decreased, recording even negative rates in 2021.
ranging between -0.16 percent and -0.06 percent
for maturities of one month to 6 years. The 10-year On the other hand, imports of goods and services
and 30-year bond yields declined to 0.19 percent in advanced economies dropped by 9.1 percent
and 0.75 percent, respectively, at the end of 2020. in 2020 but are projected to rise by 9.1 percent in
Table 1.4: Trends of Fiscal Balances*

(Percentage)
Projections
2018 2019 2020
2021
Advanced economies -3.4 -3.7 -13.2 -11.9
USA -5.4 -5.7 -15.8 -15.0
Euro area -0.5 -0.6 -7.6 -6.7
Germany 1.8 1.5 -4.2 -5.5
France -2.3 -3.0 -9.9 -7.2
Italy -2.2 -1.6 -9.5 -8.8
Japan -2.7 -3.1 -12.6 -9.4
UK -2.2 -2.3 -13.4 -11.8
Canada 0.3 0.5 -10.7 -7.8

*Ratio of surplus/deficit to GDP.
14
2021. Imports in emerging market and developing B. Financial Account Balances
economies also declined by 8.6 percent in 2020. In advanced economies, the financial account of
They are, however, projected to grow by 9.0 percent the balance of payments (BOP) recorded a deficit
in 2021 (Table 1.5). of $2.8 billion in 2020 against a surplus of $319.8
billion in 2019. However, it is projected to register
A. Current Account Balances a surplus of $136.3 billion in 2021. In the United
The ratio of the surplus in the current account States, the BOP financial account deficit rose to
balance to GDP in advanced economies decreased $766.1 billion in 2020 compared to $395.5 billion in
from 0.7 percent in 2019 to 0.3 percent in 2020. In 2019. The financial account surplus of the euro area
the United States, the current account deficit went increased to $337.9 billion in 2020 from $239.4
up to 3.1 percent in 2020 from 2.2 percent in 2019, billion in 2019. In Germany, the financial account
and it is projected to increase to 3.9 percent in surplus increased to $289.9 billion in 2020 from
2021. In the euro area, the current account surplus $230.1 billion in the preceding year. By contrast,
remained at 2.3 percent in 2020 and is projected to the financial account deficit in France increased
rise to 2.8 percent in 2021. In Germany, the surplus to $71.1 billion in 2020 as compared to $32.3
remained at 7.1 percent in 2020 and is projected billion in the preceding year. In Japan, the financial
to go up to 7.6 percent in 2021. Meanwhile, the account surplus decreased to $168.3 billion in 2020
current account deficit of France rose to 2.3 percent compared to $227 billion in 2019.
in 2020 from 0.7 percent in 2019, but it is projected
to decline to 2.1 percent in 2021. In Italy, the ratio As for emerging market and developing economies,
of the current account balance to GDP recorded a their BOP financial account recorded a shift from
surplus of 3.6 percent in 2020 against a surplus of a deficit of $158.3 billion in 2019 to a surplus of
3.0 percent in 2019, but it is projected to register a $145.6 billion in 2020. In Sub-Saharan Africa, the
surplus of 3.5 percent in 2021. The current account financial account deficit decreased to $37.9 billion
deficit in the United Kingdom rose from 3.1 percent in 2020 against a deficit of $52.5 billion in 2019.
in 2019 to 3.9 percent in 2020, and it is projected With regard to emerging and developing Asia, the
to remain stable in 2021. The surplus in Japan financial account balance turned from a deficit
decreased from 3.7 percent in 2019 to 3.3 percent of $81.6 billion in 2019 to a surplus of $261.8
in 2020; however, it is projected to improve to 3.6 billion in 2020. By contrast, the financial account
percent in 2021. of the MENA countries, Afghanistan and Pakistan
recorded a shift from a surplus of $19.0 billion in
In emerging and developing Asia, the aggregate 2019 to a deficit of $96.4 billion in 2020, but it is
current account balance (as a percentage of GDP) projected to register a surplus of $29.2 billion in
recorded a surplus of 1.7 percent in 2020 against 2021 (Table 1.6).
a surplus of 0.6 percent in 2019, and it is projected
to register a surplus of 1.0 percent in 2021. In the Economic Developments in GCC
MENA countries, Afghanistan and Pakistan, the Countries
current account recorded a deficit of 3.0 percent in According to the IMF April 2021 WEO report, all GCC
2020 against a surplus of 0.5 percent in 2019 and is countries were affected by the COVID-19 pandemic
expected to register a surplus of 0.3 percent (as a and the drop in oil prices in global markets. In the
percentage of GDP) in 2021 (Table 1.5). UAE, real GDP contracted by 5.9 percent in 2020
15
compared to a growth of 1.7 percent in 2019. In the price index (CPI) in the UAE declined by 2.1 percent
same period, Kuwait recorded a contraction rate of in 2020 compared to a deflation of 1.9 percent in
8.1 percent against a growth rate of 0.4 percent, 2019. In Bahrain, the inflation rate went down from
while the contraction in Oman increased from 0.8 1.0 percent in 2019 to record a deflation of 2.3
percent to 6.4 percent. Bahrain also recorded a percent in 2020, while it decreased from 0.1 percent
contraction of 5.4 percent compared to a growth in Oman to record a deflation of 0.9 percent in the
of 2.0 percent in 2019. The GDP in Qatar dropped same period. In Qatar, the CPI recorded a deflation
by 2.6 percent compared to a growth of 0.8 percent of 2.7 percent compared to a deflation of 0.7
in the preceding year. In Saudi Arabia, the GDP percent in 2019. By contrast, the inflation in Kuwait
contracted by 4.1 percent in 2020 compared to a increased from 1.1 percent in 2019 to 2.1 percent in
growth of 0.3 percent in the preceding year. 2020. Saudi Arabia also recorded an increase in its
inflation rate to reach 3.4 percent in 2020 against a
Inflation rates went down in all GCC countries, deflation of 2.1 percent in the preceding year.
except in Saudi Arabia and Kuwait. The consumer
Table 1.5: World Trade and Current Account

(Percentage)
Projections
2019 2020
2021
World trade growth 0.9 -8.5 8.4
Exports (goods & services)
Advanced economies 1.3 -9.5 7.9
Emerging & developing economies 0.5 -5.7 7.6
Imports (goods & services)
Emerging & developing economies -1.0 -8.6 9.0
Current account*
Advanced economies 0.7 0.3 0.2
USA -2.2 -3.1 -3.9
Euro area 2.3 2.3 2.8
Germany 7.1 7.1 7.6
France -0.7 -2.3 -2.1
Italy 3.0 3.6 3.5
Japan 3.7 3.3 3.6
UK -3.1 -3.9 -3.9
Emerging & developing economies 0.1 0.6 0.5
Emerging & developing Asia 0.6 1.7 1.0
Middle East, North Africa, Afghanistan & Pakistan 0.5 -3.0 0.3
Sub-Saharan Africa -3.7 -3.7 -3.7
Latin America & the Caribbean countries -1.7 0.2 0.0

*Ratio of deficit/surplus to GDP.
16
GCC countries recorded declines in their current of 2020, GMCO’s board held 52 meetings. The
account balances (as a percentage of GDP). The developments included carrying out a number of
UAE recorded a surplus of 3.1 percent in 2020 joint projects with the central banks of member
against 8.4 percent in 2019. In Kuwait, the surplus countries, conducting research, preparing reports,
of 16.4 percent recorded in 2019 decreased to 0.8 continuing coordination of monetary policies and
percent in 2020. In Qatar, the current account as a strengthening cooperation among these central
percentage of GDP recorded a deficit of 3.4 percent banks. Moreover, GMCO has completed developing
in 2020 compared to a surplus of 2.4 percent in the a comprehensive framework for liquidity forecasting
preceding year. Saudi Arabia recorded a deficit of and management by monitoring changes in
2.1 percent in 2020 compared to a surplus of 4.8 liquidity sources. In addition, GMCO has developed
percent in 2019. In Bahrain, the deficit in the current a macroeconomic model and is working to improve
account increased to 9.6 percent in 2020 compared it for the purpose of studying GCC economies and
to a deficit of 2.1 percent in 2019. Similarly, the the impact of challenges and changes that may
deficit in Oman increased to 10.0 percent against a occur.
deficit of 5.4 percent in 2019 (Table 1.7).
Gulf Common Market (GCM)
Regional and International Total GCC intra-trade transactions increased
Cooperation steadily from $92.7 billion in 2010 to $140.2 billion
Gulf Monetary Council (GMCO) in 2019. Statistics show that more GCC citizens
The GMCO has witnessed several developments are benefiting from GCM decisions, bringing
regarding fulfilling the main objectives of its the number of citizens travelling between GCC
statute and the tasks assigned to it by its board countries to 27 million in 2019. In addition, the total
of directors. From its establishment until the end number of licenses granted to GCC citizens who
Table 1.6: Financial Account Balances

(Billion USD)
Projections
2019 2020
2021
USA -395.5 -766.1 -877.8
Euro area 239.4 337.9
Germany 230.1 289.9 327.0
France -32.3 -71.1 -59.3
Italy 53.7 80.2 75.3
Japan 227.0 168.3 191.2
UK -105.8 -109.0 -124.4
Canada -38.6 -32.1 -11.3
Emerging & developing economies -158.3 145.6 266.9
Sub-Saharan Africa -52.5 -37.9 -50.9
Emerging & developing Asia -81.6 261.8 237.4
MENA countries, Afghanistan & Pakistan 19.0 -96.4 29.2
Emerging & developing Europe 63.4 16.4 50.1
Latin America & the Caribbean countries -106.7 1.7 1.1

17
practice economic activities in other GCC countries the AMF were at the top of credit facilities granted
reached more than 60 thousand by the end of by the AMF since 1978 until the end of 2019,
2019. The total number of GCC citizens benefiting representing 60.7 percent of total loans extended
from real estate’s ownership decisions went up as throughout this period. The structural adjustment
358 thousand purchases were made in 2019. The facilities extended came next with 29.9 percent,
number of GCC citizens trading in other GCC stock followed by the trade reform facility with 2.7
markets was about 431 thousand shareholders in percent and the oil facility with 1.4 percent.
653 joint-stock companies with a capital of $376
billion. B. Arab Bank for Economic
Development in Africa (BADEA)
Arab Financial Institutions Overall financial obligations of BADEA toward
Arab financial institutions hold their annual countries reached $600 million at the end of 2019,
meetings in the spring of every year. In these including 14 loans with a value of $240 million
meetings, they review their performance and for development projects in Africa. Infrastructure
agendas. The following is a brief of these institutions lending had the largest share of total loans,
and their activities. amounting to 44.6 percent. Lending for the social
sector accounted for 32.3 percent, and lending
A. Arab Monetary Fund (AMF) for the agriculture and rural development sector
Total loans extended by the AMF to member accounted for 23.1 percent. BADEA continued its
countries up to the end of 2019 were 77.8 million policy of maintaining a sound financial position,
Arab Accounting Dinars (AAD) ($328 million), which resulted in an increase of its net assets to
bringing the total value of loans extended by the $5.1 billion at the end of 2019 compared to $4.8
AMF since the beginning of its lending activities billion at the end of the preceding year. Net income
in 1978 to around AAD 2.4 billion ($10 billion). A recorded a profit of $322 million in 2019, compared
total of 187 loans were extended by the AMF to 14 to a loss of $39.9 million in 2018, mainly due to the
member countries. Loans (i.e. automatic, ordinary, improvement in the market value of equity and
compensatory and extended loans) extended by fixed income portfolios.
Table 1.7: Key Economic Developments in GCC Countries

UAE Bahrain Saudi Arabia Oman Qatar Kuwait
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Real GDP growth 1.7 -5.9 2.0 -5.4 0.3 -4.1 -0.8 -6.4 0.8 -2.6 0.4 -8.1
Inflation rate -1.9 -2.1 1.0 -2.3 -2.1 3.4 0.1 -0.9 -0.7 -2.7 1.1 2.1
Current account
35.4 11.0 -0.8 -3.3 38.2 -15.0 -4.1 -6.3 4.2 -5.0 22.1 0.9
(billion USD)
Current account to
8.4 3.1 -2.1 -9.6 4.8 -2.1 -5.4 -10.0 2.4 -3.4 16.4 0.8
GDP
Ratio of surplus/
0.6 -7.4 -9.0 -18.3 -4.5 -11.1 -6.7 -17.3 4.9 1.3 4.4 -9.4
deficit in fiscal balance
Population (million) 10.7 11.1 1.5 1.5 34.1 34.8 4.6 4.4 2.8 2.8 4.8 4.9
18
C. Arab Fund for Economic and Social $36.6 million in the preceding year. The income was
Development (AFESD) generated mainly from investment portfolios, loans
During 2019, the AFESD extended 12 loans with and companies’ dividends. Net profit reached $29
a total of Kuwaiti dinar (KWD) 483.5 million to million, compared to $11.9 million in the preceding
finance projects in six Arab countries. The ratio of year. Total assets stood at $1.02 billion at the end
loans to total cost of these projects was estimated of 2019 against $985 million in the preceding
at 31.4 percent. The cumulative value of 689 year. AAAID’s total liabilities stood at $50.8 million
loans extended by the AFESD, starting from the against $46.2 million in the preceding year.
commencement of its operations in 1974 up to
the end of 2019, reached KWD 10.8 billion. Total Islamic Development Bank (IsDB)
revenues for 2019 increased to KWD 176.2 million According to the draft financial statements
compared to KWD 61.4 million in the preceding submitted to the external auditor, total assets of
year. During 2019, administrative expenses stood at the IsDB increased from $32.6 billion at the end
KWD 8.8 million, and net income (after deducting of 2019 to $35.2 billion at the end of 2020. Total
provisions) recorded a profit of KWD 160.6 million liabilities also increased from $20.1 billion in
compared to KWD 49 million in 2018. 2019 to $22.0 billion in 2020. The IsDB’s capital
and reserves increased by $13.1 billion in 2020,
D. Arab Investment and Export Credit compared to $12.5 billion in the preceding year.
Guarantee Corporation (Dhaman) Total revenues decreased from $859.8 million
Dhaman’s assets in 2019 totaled $517.7 million, in 2019 to $852.9 million in 2020. On the other
43.6 percent of which was in investments, 54.5 hand, total expenses increased from $665 million
percent in cash and deposits, and 2.0 percent in to $686 million in the same period. As a result, net
other assets. Equity stood at $487.9 million at the income reached $166.5 million in 2020, compared
end of 2019. Total income of Dhaman was $28.7 to $194.1 million in 2019. It is worth noting that
million in 2019. Of this amount, $19.2 million was the IsDB’s total granted loans decreased to $2.7
from guarantees, banks and bonds interest income, billion in 2020, compared to $2.8 billion in 2019.
accounts on demand and other miscellaneous Outstanding loans increased to $22.3 billion at the
income; and $13.2 million was from investment end of 2020, compared to $20.4 billion at the end
income, dividends income, sale of a number of of 2019. Repaid loans also increased to $1.87 billion
investments in bonds, financial funds, investment in 2020, compared to $1.86 billion in 2019.
portfolios and currency spreads. Dhaman’s general
and administration expenses reached $10.3 million The OPEC Fund for International
in 2019. Additionally, Dhaman made a net profit of Development (OFID)
$18.3 million in 2019 against a loss of $3.1 million According to the preliminary data of the OPEC
in the preceding year. Fund for International Development, OFID’s
capital (including reserves and member country
E. Arab Authority for Agricultural contributions) decreased to $7.3 billion at the
Investment and Development (AAAID) end of 2020, compared to $7.4 billion at the end
AAAID’s total contribution to the capital accounts of 2019. OFID’s total assets reached $7.6 billion at
of existing and to-be-formed companies in 2019 the end of 2020. In addition, OFID’s total granted
(contributions and loans) amounted to $640 million, loans decreased to $1.3 billion at the end of 2020
or 89 percent of its paid-up capital of $721 million. against $1.5 billion in 2019. Total repaid loans also
Total income of AAAID was $99.7 million against decreased to $1.1 billion in 2020, compared to
19
$1.2 billion in 2019. Total revenues reached $324.7 advice, capacity development, and rapid financial
million in 2020, compared to $303.1 million in support. In addition, the IMFC welcomed the
2019. OFID’s net income stood at $239.3 million in extension of debt service relief for another six
2020, compared to $232.7 million in 2019. months under the IMF’s Catastrophe Containment
and Relief Trust (CCRT) and the progress made in
International Monetary Fund (IMF) securing additional loan resources for the Poverty
International Monetary and Financial Reduction and Growth Trust (PRGT).
Committee (IMFC)
The IMFC held its 42nd meeting virtually on In addition, the IMFC supported the extension of
October 15, 2020. The meeting discussed the state the G20’s Debt Service Suspension Initiative (DSSI)
of global economy, especially the repercussions for the poorest countries for an additional six
of the COVID-19 pandemic. The IMFC stated months. The IMFC also reaffirmed its commitment
in its final statement that the global economy to a strong and quota-based IMF to maintain global
is witnessing a temporary economic recovery, financial safety. It stressed that it would keep
supported by exceptional responses at the level of demand for IMF resources under close review and
macroeconomic policies. This recovery, however, is affirmed its commitment to revisiting the adequacy
partial, uneven among countries and uncertain. of quotas. The IMFC emphasized that it will continue
the process of IMF governance reform under the
Moreover, the IMFC indicated that it will continue 16th General Review of Quotas, including a new
making exceptional and urgent responses related quota formula as a guide, by December 15, 2023.
to monetary and fiscal policies as required by
the crisis stages, taking into account country- World Bank Group (WBG)
specific circumstances. The IMFC also outlined Development Committee
its commitment to using all available policy tools The WBG Development Committee held its virtual
to restore economic growth and safeguard jobs. meeting on October 16, 2020. The meeting discussed
Moreover, it emphasized its willingness to help the WBG’s response to the COVID-19 pandemic.
vulnerable countries by meeting their financing The Development Committee Communiqué noted
needs and promoting international cooperation that the pandemic is overwhelming health systems,
to accelerate efforts in research and development disrupting productivity, threatening food security
regarding the pandemic. Through accelerating and reducing job opportunities and incomes,
these efforts, the IMFC aims to provide affordable especially for the most vulnerable. It stressed that
vaccines for everybody in a fair manner, which is the crisis requires a comprehensive and robust
a key requirement to overcome this pandemic and global response from the development community.
support global economic recovery.
The committee called on the WBG and the IMF
The IMFC also affirmed its support for countries’ to continue working with member countries, the
efforts to maintain debt sustainability and its public and private sectors, development partners
work with all parties concerned to improve the and international organizations. It also emphasized
architecture for sovereign debt resolution. The that the WBG should further the response while
IMFC welcomed the IMF’s exceptional efforts to focusing on ending poverty and fostering shared
assist its member countries in overcoming the prosperity in a sustainable manner. The committee
COVID-19 crisis through monetary and fiscal policy stressed the importance of an effective COVID-19
20
vaccine; it welcomed the $12 billion in financing The report focused on COVID-19 containment
recently approved for IDA and IBRD countries to measures and policy interventions, as health, social
support vaccine purchase and deployment. and economic impacts are expected to be deeper
and longer-lasting than the impacts of the global
Additionally, the committee encouraged the WBG financial crisis in 2008. The report applauded the role
to help with affordable and equitable access to of national and international cooperation and the
tests, treatments and vaccines for developing policy measures taken by governments and central
countries. In order to accelerate a resilient recovery banks. It noted that the magnitude and scope of the
that focuses on jobs and economic transformation, financial, monetary and precautionary responses
the committee asked the WBG to provide to the COVID-19 pandemic are unprecedented,
knowledge, advice and financial support to help despite the increasing vulnerabilities in the pre-
concerned countries strengthen social safety nets pandemic period, especially in the non-banking
and facilitate the movement of capital and labor financial sector. Although the current banking
toward sectors that will be more productive and systems enjoy better capital and more liquidity than
sustainable in the post-pandemic context, while they did in 2008, the measures of central banks
providing the innovation needed to open up trade aim to prevent the real crisis from developing into
finance for SMEs. a financial crisis. Moreover, the report indicated
that during the current digital age, central banks
Moreover, the committee noted the importance play a tripartite role in payment and settlement
of an immediate response in public health, food systems, which includes stimulation, operation
security and education. Thus, it called on all and supervision. The report also discussed issues
countries to support the availability of medical related to digital currencies of central banks and
and food supplies on which developing countries digital technologies.
depend to avoid the risk of a wider health crisis
and famine. The WBG is working hard to encourage In addition to its extended contribution to several
the development of comprehensive debt solutions committees of the BIS, SAMA joined the Committee
that at least include debt suspension, debt relief, on the Global Financial System (CGFS) in 2020.
debt resolution and debt transparency. The The CGFS monitors developments in the financial
WBG welcomed the G20’s initial agreement on a sector and analyzes the effects on financial stability
“Common Framework for Debt Treatments beyond and central banks’ policies. SAMA also participates
the DSSI”, which was also agreed to by the Paris Club. in one of the most vital BIS committees: the Basel
Furthermore, it encouraged the proposal of actions Committee on Banking Supervision (BCBS), which
to address fiscal and debt stress on a case-by- is concerned with setting basic global standards for
case basis for middle-income countries by making the prudential regulation of banks and providing
additional resources available in these tough times a forum for regulatory cooperation on banking
in line with the capital package commitments. supervision issues since 1974. The BCBS has
coordinated a set of regulatory and supervisory
Bank for International Settlements measures to mitigate the effects of the pandemic
(BIS) and Basel Committee on Banking by allowing banks to lend and provide financial
Supervision (BCBS) services to the real economy, while preserving
The BIS held its 90th annual general meeting and their ability to mitigate losses in an orderly manner.
issued its annual economic report in June 2020. Besides, the BCBS has worked to make operational
21
capacity available in member banks and supervisory G20 Leaders’ Summit, which was held virtually in
authorities in response to the pandemic. March 2020. The Summit discussed ways to move
forward in coordinating global efforts to fight the
Financial Stability Board (FSB) COVID-19 pandemic, reduce its impact on people,
The FSB held its last meeting for the year 2020 protect lives, protect the global economy, preserve
in November. Members discussed its report financial stability, restore confidence, minimize
“Holistic Review of the March Market Turmoil” disruptions to trade and global supply chains,
and the COVID-19 developments in preparation for provide assistance to all countries in need, and
submitting the report to the Riyadh Summit in the enhance global cooperation and coordination on
G20. Additionally, members agreed to regulate the public health and financial measures. The Summit
work of non-bank financial intermediation sector reached a number of exceptional decisions,
(NBFI), including the policy action plan for money including the development of the G20’s Debt
market funds (MMFs). Service Suspension Initiative (DSSI) and the G20
Action Plan in Response to the COVID-19 Pandemic.
The meeting also addressed the FSB work program
for 2021 and the deliverables proposed by the The G20 leaders met for the second time under
Italian G20 Presidency that complement the work the Saudi Presidency at the G20 Leaders’ Summit,
initiated by the Saudi G20 Presidency toward which was held virtually on November 21 and 22,
implementing the G20 Roadmap to Enhance Cross- 2020. The G20 leaders reiterated the commitments
Border Payments. Members also discussed the made at the Extraordinary Summit and agreed on
FSB high-level recommendations for regulation, the need to coordinate global action, solidarity
supervision and oversight of “global stablecoin” and multilateral cooperation more than ever
(GSC) arrangements. Moreover, members before. This coordination is aimed at responding
exchanged views on the extent to which the FSB to the current challenges resulting from the
program is balanced between meeting the constant pandemic. In addition, the G20 leaders agreed on
need to respond to the challenges arising from the the need to mobilize the necessary resources to
COVID-19 pandemic and working on other financial meet urgent financing needs in global health to
stability issues. They submitted proposals to support research, development, manufacturing
enhance setting of priorities in the work program. and deployment of safe and effective treatments
They also addressed the need to redouble the and vaccines. The Summit affirmed that the global
FSB work on the implications of climate change economic activity has partially recovered due to the
for financial stability and on the climate-related gradual reopening of the G20 economies and the
financial disclosures. adoption of important policy measures, despite the
sharp contraction in the global economy in 2020. It
The Group of Twenty (G20) is worth mentioning that Saudi Arabia has donated
The Kingdom of Saudi Arabia chaired the G20 $500 million to support international efforts
meetings in 2020. The agenda of the meetings in fight against COVID-19. The financial aid has
centered around realizing the opportunities of supported emergency preparedness and response;
the 21st century for all by empowering people, development and deployment of new diagnostics,
safeguarding the planet and shaping new frontiers. therapeutics and vaccines; and fulfillment of
In response to the emergence of COVID-19 crisis, unmet needs for international surveillance and
the Saudi G20 Presidency called for an Extraordinary coordination. This contribution came to fulfil the
22
commitments made at the Extraordinary G20 highlighted the need to accelerate efforts to ensure
Leaders’ Summit, which was called for and chaired an inclusive recovery that tackles inequalities by
by the Custodian of the Two Holy Mosques. achieving sustainable development and ensuring
access to opportunities. For example, the G20
Moreover, the G20 leaders affirmed their leaders endorsed the G20 Menu of Policy Options
determination to continue to use all available policy to Enhance Access to Opportunities and the G20
tools as appropriate to protect people’s lives, jobs High-level Policy Guidelines on Digital Financial
and sources of income and to support the global Inclusion for Youth, Women and SMEs. Additionally,
economic recovery. The Summit reaffirmed the the leaders welcomed the 2020 G20 Financial
exchange rate commitments made by the finance Inclusion Action Plan, which will guide the work of
ministers and central bank governors in March the Global Partnership for Financial Inclusion (GPFI)
2018. The G20 leaders expressed their commitment for the next three years.
to take immediate and exceptional measures to
confront the COVID-19 pandemic by applying The leaders also endorsed the Circular Carbon
unprecedented fiscal, monetary and financial Economy (CCE) Platform, with its 4Rs framework
stability actions consistent with governments’ (Reduce, Reuse, Recycle and Remove), realizing the
and central banks’ respective mandates. They key importance of reducing emissions. In addition,
also reiterated their commitments to continue they reiterated the importance of agriculture
supporting emerging, developing and low-income to ensure food security and the importance of
countries and to take the necessary actions to water as being essential for human life. At the
support recovery and achieve sustainable, balanced end of the Summit, the G20 leaders expressed
and inclusive growth. In addition to that, they their appreciation to Saudi Arabia for successfully
committed to implementing the DSSI, including its hosting Riyadh Summit, indicating that they look
extension through June 2021, allowing DSSI-eligible forward to the next Summit in Italy in 2021.
countries to suspend official bilateral debt service
payments. The leaders also endorsed the Common Organization of the Petroleum
Framework for Debt Treatments beyond the DSSI. Exporting Countries (OPEC)
The 12th OPEC and non-OPEC Ministerial Meeting
Furthermore, the G20 leaders committed to shaping was held virtually in December 2020. The meeting
a strong, sustainable, balanced and inclusive post- reaffirmed the continued commitment of the
COVID-19 era and to taking the actions necessary producing countries participating in the Declaration
to better prepare for any future crisis. The Summit of Cooperation (DoC) to maintaining a stable
focused on preparing a development plan that oil market, the mutual interest of oil-producing
includes issues of health, trade and investment, countries, the efficient and secure economic
transportation and travel, international financial supply to consumers, and a fair return on invested
architecture, and infrastructure investment. In capital. Furthermore, the meeting recalled the
addition, G20 members affirmed their commitment decisions taken by the participating countries in
to the adherence to the Financial Stability Board’s the extraordinary meetings held in April and June,
principles that support national and international including the unanimous decisions to adjust cuts in
responses to COVID-19 pandemic. The Summit overall crude oil production.
discussed issues related to digital economy,
international taxation and anti-corruption, and The meeting welcomed the positive performance
23
in overall conformity levels to the production important that countries and public authorities take
adjustments, and the constructive response from the necessary measures, including the adoption of
many countries to the compensation mechanism a risk-based approach, to prevent or mitigate the
in accommodating their underperformed volumes. emerging risks and trends of money laundering and
The DoC participants agreed to hold monthly terrorist financing linked to the pandemic. With
OPEC and non-OPEC ministerial meetings to assess nearly 200 countries and jurisdictions committed
market conditions and decide on further production to implementing the FATF Recommendations, the
adjustments. meeting emphasized the importance of enhancing
cooperation with the FATF-Style Regional Bodies
Islamic Financial Services Board (IFSB) (FSRBs) in order to improve the implementation
The IFSB is an international standard-setting of the FATF Standards across the whole Global
organization that enhances the soundness and Network, taking into account COVID-19 impacts.
stability of the Islamic financial services industry. The delegates also discussed the FATF’s strategic
The IFSB issues global prudential standards for the initiative, including policy responses to the
industry that includes banking, capital markets COVID-19 pandemic with regard to mutual
and Takaful insurance sectors. The IFSB regulatory evaluation, follow-up processes and processes to
standards complement and are consistent with the monitor jurisdictions under increased monitoring.
existing international standards for the regulation In addition, the meeting highlighted the ongoing
of the financial services sector. It is worth noting work to develop new FATF guidance on proliferation
that Saudi Arabia has been a member of the IFSB financing risk assessment and mitigation. This
since its establishment in 2002. At the end of 2020, guidance will provide further clarity to countries and
the IFSB members reached 188. Moreover, SAMA the private sector on implementation of the new
will host the 15th IFSB Summit in 2021. requirements to avoid unintended consequences,
such as financial exclusion.
The IFSB has issued more than 30 prudential
standards, the most important of which is the IFSB-
17 “Core Principles for Islamic Finance Regulation”
(CPIFR). In May 2018, the IMF approved the
endorsement of the CPIFR for the banking sector
and their assessment methodology for the purpose
of undertaking financial sector assessments and
preparing Reports on the Observance of Standards
and Codes (ROSCs). The Financial Stability Board
(FSB) also approved the inclusion of the CPIFR into
its Compendium of Standards in December 2019.
Financial Action Task Force (FATF)

The FATF Plenary Meeting, held in October 2020,
focused on the uncertain economic recovery from
the COVID-19 pandemic, which resulted in an
increase in the number of cases of financial fraud,
such as investment fraud and adapted cyber-
crime scams. The meeting also stressed that it is
24
2
SAUDI
ECONOMY
compared to a growth of 0.3 percent in 2019.

This contraction was attributed to a decline of 6.7
Saudi Economy
percent, compared to a decline of 3.6 percent in
2019, in the oil sector due to Saudi Arabia’s low oil
production in response to the significant decline in
world oil demand as a result of the repercussions
The world faced exceptional circumstances in of the COVID-19 pandemic. Similarly, the non-oil
2020 at all levels, including the economic one, as sector registered a decline of 2.3 percent in 2020
the COVID-19 pandemic cast its shadow on the compared to a rise of 3.3 percent in the preceding
global economy. As part of the global economic year. The non-oil private sector fell by 3.1 percent
system, the Saudi economy contracted by 4.1 in 2020 against a growth of 3.8 percent in the
percent in 2020. This economic contraction was preceding year. Moreover, the non-oil government
mainly attributable to a decline in the oil sector as sector decreased by 0.5 percent in 2020 compared
the world demand for energy products declined to a rise of 2.2 percent in 2019.
due to the closure of world economies and the
lockdown measures. Most major economic production activities at
constant prices contracted in 2020, albeit at varied
The non-oil sector also contracted due to the rates (Table 2.2). Manufacturing industries fell by
precautionary measures aimed to limit the spread 7.7 percent; mining and quarrying by 6.0 percent;
of COVID-19, including the closure of domestic transportation, storage and communications by
markets and the curfew. The closure and curfew 6.0 percent; wholesale and retail trade, restaurants
lasted for more than three months and affected and hotels by 4.8 percent; community, social and
most of the main economic activities in various personal services by 4.2 percent; electricity, gas
degrees. However, the Saudi economy has shown and water by 2.1 percent; agriculture, forestry
remarkable resilience in containing the economic and fishing by 1.7 percent; and construction and
spillovers. Saudi Arabia has been able to mitigate building by 0.4 percent. On the other hand, finance,
the effects and consequences of the pandemic insurance, real estate and business services grew by
prudentially. It has also set an example to the 0.8 percent. In addition, producers of government
world with the efforts exerted by its various services increased by 0.4 percent.
institutions and sectors in facing the pandemic
and maintaining the gains. In 2020, Saudi Arabia Domestic Supply and Demand
chaired the G20 and achieved resounding success The total supply of goods and services from
in its Presidency and in hosting the Summit the non-oil sector (at current prices) recorded
virtually despite the pandemic circumstances. a decrease of 3.4 percent in 2020. The non-oil
Moreover, many historic initiatives and outputs GDP (at current prices) decreased by 1.5 percent.
were launched to support and reform the global The government sector and private sector fell by
economy and overcome the health, social and 0.7 percent and 1.9 percent, respectively. Total
economic impacts of the COVID-19 pandemic. imports of goods and services also decreased by
9.9 percent.
Economic Growth The total demand for goods and services by the
GaStat preliminary data indicate that GDP at non-oil sector (at current prices) recorded a decline
constant prices (2010=100) contracted by 4.1 of 4.5 percent in 2020. The final consumption
percent to SAR 2,531.4 billion during 2020 increased by 0.6 percent due to a 5.6 percent
26
Saudi Economy
increase in the consumption expenditure of the Inflation
government sector despite a 2.5 percent decline The average consumer price index (CPI) increased
in the consumption expenditure of the private by 3.5 percent in 2020 against a 2.1 percent
sector. Gross capital formation, however, declined decline in 2019. This rise was attributable to the
by 9.1 percent (Table 2.3). increase of VAT rate from 5 percent to 15 percent
Furthermore, non-oil exports witnessed a as of July 2020. Most of the CPI’s components
significant decline of 24.2 percent, with service recorded increases, including food and beverages;
exports declining sharply by 57.7 percent in 2020 tobacco; communication; home furnishing,
as compared to an increase of 18.1 percent in equipment and maintenance; restaurants and
2019. Commodity exports recorded a decline of hotels; miscellaneous goods and services; clothing
10.8 percent in 2020 compared to a decline of 2.7 and footwear; recreation and culture; and health.
percent in the preceding year (Table 2.3). In contrast, education as well as housing, water,
Table 2.1: Selected Economic Indicators

2019 2020
Estimated population (million) 34.2 35.0
GDP at current prices (billion SAR) 2,973.6 2,625.4
GDP at constant prices (billion SAR) (2010=100) 2,639.8 2,531.4
Non-oil GDP deflator 132.7 133.8
Inflation rate (consumer prices) -2.1 3.4
Aggregate money supply M3 (billion SAR) 1,985.1 2,149.3
Daily average of oil production (million barrels) 9.8 9.2
Average price of Arabian Light oil* (USD) 65.0 41.9
Riyal's effective exchange rate (2010=100) 112.1 115.0
Currency in circulation to total money supply ratio 9.5 9.6
Deposits to money supply ratio 90.5 90.4
Net foreign assets of domestic banks (billion SAR) 70.5 68.0
Interest rates on Saudi riyal deposits (3 months)** 2.6 1.2
Bank capital adequacy ratio (Basel III) 19.4 20.3
Actual government revenues (billion SAR) 926.8 781.8
Oil revenues (billion SAR) 594.4 413.0
Actual government expenditures (billion SAR) 1,059.4 1,075.7
Budget deficit (billion SAR) -132.6 -293.9
Budget deficit to GDP ratio -4.5 -11.2
Commodity Exports (billion SAR)*** 981.0 652.0
Commodity imports CIF (billion SAR) 574.4 559.9
Current account surplus to GDP ratio 4.8 -2.8
Current account (billion SAR) 143.4 -73.7
Tadawul All Share Index (TASI) (1985 = 1,000) 8,389.2 8,689.5
Public debt to GDP ratio 22.8 32.5

* OPEC numbers.
** Interbank offered rates (SAIBOR).
*** Including oil & non-oil exports.
Source: GaStat, MoF, MoE, CMA & SAMA.
27
electricity, gas and other fuels recorded decreases. in 2020. The average daily production of crude
Furthermore, the wholesale price index (WPI) oil decreased by 6.1 percent to 9.2 million barrels
increased by 3.4 percent in 2020 against a rise of in 2020 compared to 9.81 million barrels in 2019
1.9 percent in 2019. The non-oil GDP deflator rose (Table 2.1).
by 0.9 percent in 2020, which is the same rate of
increase registered in 2019. With regard to electricity, the Saudi Electricity
Company (SEC)’s sales of electricity in 2020
Energy, Industry and Mineral amounted to 289.3 million megawatt-hours
Resources (MWh). By type of consumption, residential
Data of the Organization of Petroleum Exporting consumption accounted for 47.6 percent (137.7
Countries (OPEC) for 2020 show a decrease of million MWh) of total electricity consumption in
35.5 percent in the average price of the Arab Light Saudi Arabia, followed by industrial consumption
crude oil to $41.91 per barrel from $64.96 per with 20.0 percent (57.9 million MWh). Commercial
barrel in 2019. According to the Ministry of Energy consumption came third with 14.4 percent
(MoE) data, Saudi Arabia’s crude oil production (41.6 million MWh), followed by government
declined by 5.8 percent to 3,372.0 million barrels consumption with 12.3 percent (35.5 million
Table 2.2: Gross Domestic Product by Economic Sector at Producers’ Values at Constant Prices (2010=100)
(Million SAR)
2018 2019 2020* Change 2020
A. Industries and other producers (excluding government services’ producers)
1. Agriculture, forestry & fishing 60,617 61,410 60,361 -1.7
2. Mining & quarrying 1,046,918 1,008,789 948,356 -6.0
a. Crude petroleum & natural gas 1,036,740 998,125 937,605 -6.1
b. Other mining & quarrying activities 10,178 10,664 10,751 0.8
3. Manufacturing 318,529 313,553 289,323 -7.7
a. Petroleum refining 94,376 91,370 79,093 -13.4
b. Other industries 224,153 222,183 210,230 -5.4
4. Electricity, gas & water 34,776 33,398 32,690 -2.1
5. Construction 113,172 118,381 117,861 -0.4
6. Wholesale & retail trade, restaurants & hotels 231,569 246,085 234,391 -4.8
7. Transport, storage & communication 154,946 163,618 153,775 -6.0
8. Finance, insurance, real estate & business services 257,692 271,938 274,231 0.8
a. Real estate activities 137,934 142,621 143,170 0.4
b. Others 119,758 129,317 131,061 1.3
9. Community, social & personal services 52,918 56,591 54,234 -4.2
10. Less imputed bank services charge 21,232 21,966 23,444 6.7
B. Government services 366,165 371,677 373,195 0.4
Total (excluding import duties) 2,616,070 2,623,474 2,514,973 -4.1
Import duties 15,021 16,338 16,432 0.6
GDP 2,631,091 2,639,811 2,531,405 -4.1

* Preliminary data.
Source: GaStat.
28
Saudi Economy
MWh). The peak load of electricity was 62,000 at 7,479 kg. The output of copper and zinc reached
megawatts in 2020, and the actual capacity of 92,915 tons and 54,448 tons, respectively. Based
electricity generation was 64,001 megawatts. on MIM’s data, more than 479 field trips were
carried out in various regions of Saudi Arabia to
As for industry and mineral resources, the latest renew licenses and monitor mineralized sites.
data issued by the Ministry of Industry and Mineral Moreover, 1,500 visits were made to rehabilitate
Resources (MIM) show that Saudi Arabia’s revenues mineralized sites. MIM also participated in more
from mining reached SAR 4.9 billion. In addition, than 188 joint government committees. These
the number of direct and indirect jobs in this sector committees aimed to consider the reservation of
reached 150 thousand, mostly in the intermediate these sites, follow up on mining investments and
and manufacturing industries. At the end of 2020, protect the environment. In addition, it reviewed
the number of valid mining licenses stood at 1,510 requests for title deeds received from Sharia
2,062. These include 69 licenses for small-sized courts and checked its databases to ensure that
mines, 70 for raw material quarries, 33 for mining, the geographical coordinates included in such
1,334 for construction material quarries and 556 requests are not located within the mining areas.
for exploration of gold and associated minerals.
Moreover, MIM allocated nine mining complexes Money Supply and Banking Activity
as well as 54 mineral reserve sites with an area of Broad money supply (M3) increased by 8.3 percent
4,000 square kilometers. The number of approved to SAR 2,149.3 billion in 2020 compared to an
mining complexes and mineral reserves reached increase of 7.1 percent in 2019. Bank deposits,
428 with an area of over 69,000 square kilometers which represented 90.4 percent of M3, recorded
distributed all over Saudi Arabia. According to an increase of 8.2 percent compared to an increase
MIM’s preliminary estimates for 2020, the output of 7.3 percent in 2019. Currency in circulation also
of gold stood at 13,222 kg, and that of silver stood grew by 9.1 percent compared to a growth of 5.0
Table 2.3: Total Domestic Non-Oil Sector’s Supply and Demand (At Current Prices)
(Million SAR)
2018 2019 2020* Change 2020
Total supply** 2,458,194 2,600,425 2,513,215 -3.4
Non-oil GDP 1,944,202 2,026,064 1,995,724 -1.5
Government 643,346 671,743 667,175 -0.7
Private 1,300,856 1,354,322 1,328,548 -1.9
Total imports 513,993 574,361 517,491 -9.9
Total demand 2,775,578 2,844,114 2,717,523 -4.4
Final consumption 1,844,341 1,866,990 1,877,824 0.6
Government 726,101 709,171 749,112 5.6
Private consumption 1,118,241 1,157,819 1,128,712 -2.5
Gross capital formation 618,793 657,030 596,918 -9.1
Non-oil exports 312,444 320,095 242,781 -24.2
Commodity exports 235,458 229,184 204,352 -10.8
Service exports 76,985 90,910 38,429 -57.7

* Preliminary data.
** The mismatch between supply and demand is because total imports and gross capital formation include oil imports.
Source: GaStat.
29
percent in 2019. A breakdown of the components banks’ profits decreased by 23.1 percent to SAR
of bank deposits to M3 in 2020 indicates that 38.7 billion in 2020 compared to an increase of 4.5
demand deposits constituted 59.7 percent, time percent in 2019.
and savings deposits 22.1 percent, and other
quasi-money deposits 8.7 percent. A breakdown Insurance Sector
of deposits by sector at the end of 2020 shows The insurance penetration rate (gross written
that deposits of the private sector increased by premiums to non-oil GDP) in Saudi Arabia stood
9.2 percent to SAR 1,518.3 billion, constituting at 1.48 percent in 2020, up from 1.27 percent in
78.1 percent of total bank deposits. The public the preceding year. Net written premiums (gross
sector’s deposits also increased by 4.7 percent to written premiums less the share of reinsurance)
SAR 424.7 billion at the end of 2020, accounting for amounted to SAR 31.9 billion, constituting 82.5
21.9 percent of total bank deposits. percent of gross written premiums in 2020 against
83.6 percent in 2019.
Moreover, a breakdown of bank claims on the
private and public sectors at the end of 2020 Domestic Stock Market
shows that total bank claims on the private sector The Tadawul All Share Index (TASI) registered an
went up by 14.0 percent to SAR 1,762.4 billion, annual rise of 3.6 percent to 8,689.5 points at the
accounting for 90.7 percent of total bank deposits end of 2020. The market capitalization of issued
in 2020 against 86.1 percent in 2019. In addition, shares rose by 0.8 percent to SAR 9,101.8 billion at
total bank claims on the public sector increased the end of 2020 from SAR 9,025.4 billion at the end
by 16.2 percent to SAR 517.5 billion, representing of the preceding year. In addition, the number of
26.6 percent of total bank deposits. Consequently, shares traded in 2020 increased by 134.7 percent
total claims on both sectors at the end of 2020 to 79.3 billion with a value of SAR 2,087.8 billion.
increased to 117.3 percent of total bank deposits
against 110.9 percent at the end of the preceding Public Finance
year. Actual revenue and expenditure data for fiscal
year 2020 (1441/1442H) indicate that revenues
Data of the consolidated financial position of declined by 15.6 percent to SAR 781.8 billion
commercial banks at the end of 2020 indicate an compared to SAR 926.8 billion in 2019. This decline
increase of 20.4 percent in commercial banks’ was attributable to a decrease of 19.5 percent in oil
reserves to SAR 288.2 billion compared to an revenues to SAR 413.1 billion. Non-oil revenues, on
increase of 7.4 percent in the preceding year. the other hand, increased by 15.2 percent to SAR
Therefore, capital and reserves of commercial 368.8 billion. Moreover, actual expenditures rose
banks increased by 9.9 percent to SAR 377.1 billion by 1.5 percent to SAR 1,075.7 billion compared to
compared to an increase of 13.0 percent in the SAR 1,059.4 billion in 2019. The actual deficit also
preceding year. Accordingly, the ratio of capital and rose by 121.6 percent to SAR 293.9 billion in 2020
reserves to total bank deposits increased to 19.4 from SAR 132.6 billion in 2019.
percent. However, the ratio of capital and reserves
to total assets declined to 12.7 percent at the end Current Account and External Trade
of 2020. The ratio of capital to risk-weighted assets Estimates of Saudi Arabia’s balance of payments
according to Basel standard (Capital Adequacy indicate that the current account declined in
Ratio) stood at 20.3 percent, which is the ratio 2020, recording a deficit of SAR 73.7 billion or 2.8
recommended by Basel Committee. Commercial percent of GDP. Preliminary figures of external
30
Saudi Economy
trade indicate a decrease of 24.8 percent from pandemic. Expenditure decreased by 83.7 percent
the preceding year in the volume of Saudi Arabia’s on religious tourism, 83.4 percent on business-
commodity trade to SAR 1,169.4 billion in 2020. related trips, 68.2 percent on visits to relatives and
This decrease was attributed to a decline of 33.5 friends, 61.7 percent on vacation and shopping
percent in the value of total exports to SAR 652.0 trips, and 1.41 percent on other purposes. In
billion, with oil exports declining by 40.5 percent addition, expenditure on outbound tourism trips
to SAR 447.6 billion and non-oil exports by 10.8 also declined markedly by 67.7 percent to SAR 22.0
percent to SAR 204.4 billion. Similarly, commodity billion in 2020 against SAR 68.1 billion in 2019.
imports decreased by 9.9 percent to SAR 517.5
billion in 2020. Agriculture, Water and Animal
Husbandry
Trade and Investment Water
The Ministry of Commerce (MC) issued in 2020 The number of water desalination plants in Saudi
commercial registers for 17,768 various new Arabia stood at 32 spread over the eastern and
companies, a decline of 8.9 percent from 19,533 western coasts, 9 of which were on the Arabian
companies in 2019. The number of valid commercial Gulf coast and 23 were on the Red Sea coast. The
registers of companies up to the end of 2020 production of desalinated water by the Saline
amounted to 185.1 thousand. A breakdown of Water Conversion Corporation (SWCC) was 1,884
existing commercial registers by region up to the million cubic meters in 2020 versus 1,886.3
end of 2020 shows that Riyadh region accounted million cubic meters in 2019, with an average daily
for the largest share with 41.5 percent of the total, production of 5.9 million cubic meters against 5.2
followed by Makkah region with 24.9 percent and million cubic meters per day in the preceding year.
then the Eastern Region with 18.9 percent. The amount of electric energy produced at SWCC’s
plants in 2020 reached 46.7 million MWh.
Tourism
According to the latest data of the Ministry of Data of SWCC indicate that the total capacity of its
Tourism (MT), expenditure on domestic tourism water transport systems exceeds 8.2 million cubic
trips declined by 29.2 percent to SAR 43.3 billion meters per day. The amount of water actually
in 2020 compared to SAR 61.2 billion in 2019. This transported reached 2.41 billion cubic meters in
decline was attributed to a decrease in expenditure 2020, with the private sector desalination plants
on tourism trips due to the precautionary contributing with 673.2 million cubic meters. As for
measures taken to limit the spread of COVID-19. In the amount of desalinated water by administrative
addition, expenditure decreased by 55.8 percent region, Makkah region constituted 34.4 percent,
on religious tourism, 29.8 percent on visits to followed by Riyadh region with 26.4 percent and
relatives and friends, 20.5 percent on vacation the Eastern Region with 19.4 percent. The average
trips, 4.6 percent on business-related trips, and water consumption per person in Saudi Arabia
11.8 percent on other purposes. amounted to 284 liters per day.
On the other hand, expenditure on inbound
tourism trips sharply declined by 80.6 percent to The number of dams constructed across Saudi
SAR 20.1 billion in 2020 against SAR 103.4 billion in Arabia in 2020 rose by 10 dams to 532 with a
2019. This decline was attributed to a decrease in total storage capacity of 2.3 billion cubic meters.
expenditure on tourism trips due to the suspension Moreover, 116 sewerage projects were carried out
of inbound tourism as a result of the COVID-19 and completed in 2020. These projects included
31
the installation of sewerage connections and Protection so as to achieve the objective of

the construction of lines, main and subsidiary sustainable development in accordance with the
networks, and wastewater treatment plants to Saudi Vision 2030.
reduce the environmental impacts of wastewater
and increase the sewerage service coverage across Transport and Communications
Saudi Arabia. At the end of 2020, the sewerage The transport, storage and communications
service coverage reached 58.1 percent. Besides, activity contributed 6.1 percent of real GDP at
1,500 km of sewerage system networks were constant prices or SAR 153.8 billion in 2020,
constructed, and 60,694 sewerage connections compared to 6.2 percent in 2019.
were installed.
Transport
Agricultural Production Transport operations (including inter-city travel in
According to latest estimates issued by the Saudi Arabia and overseas travel by air, land and
General Authority for Statistics (GaStat) for sea) recorded a decline of 63.0 percent in 2020
2019, agricultural production volume stood at due to the COVID-19 pandemic. The number of
14.4 million tons. A breakdown of agricultural passengers fell to 41.3 million from 111.6 million
production shows that production of fodder in the preceding year (Table 2.4).
reached 9.1 million tons, vegetables 1.9 million According to its latest data, the Ministry of
tons, grain 1.5 million tons, and fruit 1.9 million Transport (MoT) carried out many significant
tons. The total cultivated area of fodder, grain and projects during 2020, including the construction
vegetables in Saudi Arabia reached 843 thousand of roads totaling 3,928 km, of which 193 km
hectares, of which fodder cultivation constituted were highways, 1,870 km were secondary roads,
57.8 percent, grain 31.9 percent, and vegetables and 1,865 km were feeder roads. A number of
10.3 percent. construction projects are underway, totaling 9,112
km with a total cost exceeding SAR 31.2 billion.
Animal Production
Statistics issued by the Ministry of Environment, As regards the latest railway project developments,
Water and Agriculture (MEWA) indicate that Saudi the latest data issued by the Transport General
Arabia’s livestock total (camels, sheep, goats, cows Authority indicate the official start of the
and poultry) was estimated at 35.3 million heads implementation of the framework agreement for
in 2020. the Saudi Landbridge Project connecting Saudi
Arabia’s ports on the Arabian Gulf coast with its
Wildlife ports on the Red Sea coast. The project is carried
Since its establishment, the National Center for out in four main phases. The first phase was
Wildlife (NCW) has been working to preserve completed, and work has officially started on the
wildlife, biodiversity, and ecosystems to achieve second and third phases. Further, preliminary
environmental sustainability and maximize social designs for the GCC Railway project have been
and economic benefits. The number of nature completed. The railway connects the GCC countries
reserves in Saudi Arabia stood at 16, constituting with a total length of 2,117 km, of which 663 km
4.3 percent of the country’s total surface area. This is inside Saudi Arabia, representing 31 percent of
comes as part of the National Program for Wildlife the total length. The construction work of the 187-
Reintroduction and in implementation of the km railway linking Ras Al Khair, Jubail Industrial
National Strategy of Wildlife and Environmental City and Dammam is underway. As for southern
32
Saudi Economy
roads project, the Transport General Authority is notable increase in the number of transshipment
currently updating the comprehensive plan of the containers by 12.2 percent over 2019. In addition,
project. the number of containers handled at Mawani’s
ports increased by 4.4 percent to 7.3 million in
According to the latest data and information 2020. The total volume of cargos handled at ports
issued by the General Authority of Civil Aviation reached 299 million tons in 2020. The number of
(GACA), the number of airports operating in Saudi ships docked at ports was 11,482 carrying a total
Arabia stood at 28 (seven international airports, of 491 thousand passengers in 2020.
eight regional airports, and 13 domestic airports).
Nine domestic airports are witnessing expansion Telecommunication and Information
projects. In addition, some international terminals Technology
at King Khalid International Airport in Riyadh One of the most prominent achievements of the
are being currently upgraded. Furthermore, the communications and information technology
number of national airlines licensed to operate in sector during 2020 was that Saudi Arabia became
Saudi Arabia reached 5, namely the Saudi Arabian the top Digital Riser within the G20 in digital
Airlines (Saudia), flynas, SaudiGulf Airlines, Nesma competitiveness as reported by the European
Airlines, and flyadeal. Center for Digital Competitiveness, advancing with
149 points according to the evaluation mechanism
According to the data of the Saudi Ports Authority used. In addition, Saudi Arabia was awarded the
(Mawani), the actual execution of outsourcing Government Leadership Award 2020 by the Mobile
contracts for the development of container World Congress (MWC2020) for its excellence
terminals at Jeddah Islamic Port has started and efforts in developing the best policies and
with the aim of raising the capacity of container regulations that support the digital economy,
terminals by 70 percent to reach more than 165 stimulating investment and creativity, and
million containers annually, compared to 7.6 contributing to achieving sustainable development
million containers currently. Mawani has launched goals. Saudi Arabia also ranked first globally in the
four transcontinental shipping lines to enhance the average speed of the 5G Internet, which stood at
link between Saudi Arabian ports and East-West 315.5 Mbps at the end of 2020.
ports, which can contribute to promoting Saudi
exports, national industries, and trade and global The number of broadband subscriptions through
supply chains between Saudi Arabia and other landlines (DSL, WiMAX, optical fiber, and other
countries of the world. The data also indicate a wired lines) reached 2.2 million, with household
Table 2.4: Transport of Passengers
2019 2020
Type of transport No. of passengers No. of passengers
(Million) (Million)
Air transport 103.4 37.4
Land transport 6.9 3.4
Railway 1.8 0.9
Inter-city transport 5.1 2.5
Maritime transport 1.3 0.5
Total 111.6 41.3

Source: Ministry of Transport, General Authority of Civil Aviation, Saudi Railways Organization & Saudi Ports Authority.
33
penetration rate standing at 35.6 percent. during 2020. Furthermore, the Saudi Post launched
Moreover, the use of mobile data increased by the Post Business product in partnership with
34 percent as the average data consumption per Google to allow owners of small, medium and large
user in Saudi Arabia exceeded the global average enterprises to verify their information on Google
of about 200 MB and reached 920 MB per user. Maps application. It also launched a number of
The Internet penetration rate in Saudi Arabia projects to enhance its operations, with a total
increased to 97.5 percent by the end of 2020 value of more than SAR 180 million, including the
against a penetration rate of 95.7 percent at the cybersecurity control management (24/7) project
end of 2019. Qassim region and the Eastern Region and the development of the platform for shipment
ranked first in terms of the Internet penetration delivery tracking.
rate among individuals with 97.4 percent, while
Makkah region accounted for the largest share E-Commerce
in terms of the Internet penetration rate among The E-Commerce Council issued the Implementing
establishments with 99.2 percent. The rate of Regulations of the E-commerce Law, which include
Internet access in populated areas increased to 99 rules promoting transparency, protecting data,
percent. Therefore, Saudi Arabia topped the G20 addressing cases of refund and cancellation, and
list together with Japan and South Korea as the facilitating the registration of e-stores in the
countries with the least digital divide of 1 percent commercial register. Moreover, the Ministry of
as the average rate in the G20 countries ranges Communications and Information Technology
between 30 and 40 percent. (MCIT) launched several initiatives to ensure
life and business continuity during the curfew
Financial statements of telecommunication period of the pandemic, including launching 46
companies show that they yielded total direct delivery platforms and applications approved by
revenues of SAR 81.3 billion from their operations the Communications and Information Technology
in Saudi Arabia in 2020, a 6.0 percent rise over the Commission until September 2020, in addition
preceding year (Chart 2.1). to 16 companies licensed to transport packages.
This resulted in a notable increase in the rate of
Saudi Post Saudi delivery drivers. The number of completed
In 2020, Saudi Arabia jumped 18 ranks in the requests reached 26 million with a value of more
Universal Postal Union’s Integrated Index for Postal than SAR 2 billion and a 250 percent growth rate
Development (2IPD) to become 50th globally and in terms of the number of delivery requests across
second in the Arab world. The Saudi Post launched Saudi Arabia.
a number of initiatives during the COVID-19
pandemic to help facilitate the precautionary Education, Health and Social Services
measures taken. An example was the service of Public Education
free home delivery of medicines as 100 thousand The total number of public education students (in
prescriptions were delivered to patients in Saudi elementary, intermediate and secondary schools)
Arabia, in addition to delivering food baskets and amounted to 5.9 million during the academic
shipments to customers in their homes. Data of year 2019/2020. The number of teachers at all
the Saudi Post indicate that the rate of compliance levels of public education stood at 490 thousand.
with delivery dates reached 92 percent, compared The number of schools stood at 27.8 thousand,
to 90 percent in 2019, and that more than 15 14.2 thousand of which were schools for girls
million postal items were delivered to customers (accounting for 51.1 percent of the total number
34
Saudi Economy
of schools). The Ministry of Education launched number of graduates stood at 275 thousand in the
the “Madrasati” platform to ensure the continuity academic year 2019/2020.
of educational processes for all levels of public
education in terms of teaching lessons, doing On the other hand, the Institute of Public
assignments, and taking tests. The Ministry also Administration (IPA) continued its training
launched 23 educational channels in conjunction programs aimed at achieving administrative
with the platform, aiming to meet the needs of development and meeting customer needs. In the
students and facilitate their access to knowledge. academic year 2020, the IPA organized a number
of general and private training courses, applied
Higher Education seminars, symposia, meetings and conferences,
The total number of students enrolled in higher some of which were online due to the COVID-19
education institutions in Saudi Arabia during the pandemic and some at its head office in Riyadh
academic year 2019/2020 stood at 1.9 million. as well as its male and female branches in various
The number of newly-enrolled students at regions of Saudi Arabia. The number of trainees
various institutions of higher education totaled participating in such activities came to 130.3
267 thousand; 83.1 percent of those were at the thousand. Furthermore, the number of graduates
bachelor’s level, 9.9 percent at the intermediate from executed preparatory programs totaled
diploma level, 5.4 percent at master’s level, 0.8 1,852, of whom 1,375 were graduates of the IPA’s
percent at PhD level, and 0.7 percent at higher head office in Riyadh and its female branch, while
diploma level. Male students constituted 44.6 477 graduates were from preparatory programs
percent of the total freshmen enrolled while delivered by Jeddah and Dammam branches of
female students accounted for 55.4 percent. In the IPA. The total number of training staff at IPA
addition, the total number of graduates from all reached 956 at the end of 2020, 85.4 percent of
levels of higher education in Saudi Arabia stood at whom were Saudis.
233 thousand during the academic year 2019/2020.
Of these, 59.0 percent were female graduates and Health Affairs
41.0 percent were male graduates. Moreover, the Data issued by the Ministry of Health (MoH)
total number of faculty at institutions of higher in 2020 indicate that the number of hospitals
education in Saudi Arabia in the academic year operating in Saudi Arabia rose to 504, an increase
2019/2020 stood at 76 thousand. of six hospitals over the preceding year. Of these,
287 were run by MoH, 50 by other government
Technical, Vocational and sectors, and 167 by the private sector. In 2020, the
Administrative Training number of healthcare centers totaled 2,257 and
Trainees at the colleges and institutes of the that of private health complexes reached 3,005.
Technical and Vocational Training Corporation In addition, the number of physicians (including
(TVTC) totaled 241 thousand during the academic dentists) working in Saudi Arabia stood at 115
year 2020, receiving their education and training thousand (3.3 per 1,000 capita). The number of
in 278 educational units in various regions of Saudi male and female nurses totaled 197 thousand, and
Arabia. The total number of the teaching staff at the number of assistant healthcare roles (including
TVTC stood at 12 thousand, and the number of pharmacists and other healthcare assistants) stood
(male and female) trainees under private training at 348 thousand. Moreover, the total number of
programs supervised by TVTC totaled 306 thousand beds in Saudi Arabia’s hospitals rose by 1600 to
in 1,035 educational units. Additionally, the total 78.6 thousand (2.24 per 1,000 capita).
35
Social Services With respect to the activities of charities in Saudi

The Social Charity Fund (SCF) of the Ministry Arabia, total funds disbursed in 2020 reached SAR
of Human Resources and Social Development 540.5 million, which were disbursed to more than
(MHRSD) aims to combat poverty in Saudi 124.7 thousand beneficiaries, compared to SAR
Arabia by enabling citizens to access the job 462.3 million in 2019.
market, developing productive family programs,
contributing to creating small business incubators, Citizen Account
developing social participation, and encouraging The Saudi government introduced the Citizen
the private sector to contribute to social Account Program in the last quarter of 2017, with
development. Since its establishment, SCF has a view to redistributing subsidies and meeting
introduced a number of initiatives and programs the citizens’ need for government benefits in a
aiming at social development and poverty manner that ensures high spending efficiency and
reduction. The following is a brief summary of the low impact of economic reforms. The program
most prominent achievements of SCF in 2020: is also aimed at encouraging rationalization of
• Educational scholarship programs: The consumption and putting in place a safety net
number of male and female graduates with for eligible households, whereby support is paid
bachelor’s degrees in various health and in cash based on household size. The results of
administrative majors reached 151, with total eligibility, which were issued by the MHRSD at
expenditure of SAR 12.4 million. the end of 2020, show that the total number of
• Financing guarantee program for small beneficiaries (along with dependents) decreased
businesses and productive families: SCF by 15.7 percent to 10.7 million supported by a
follows up on outstanding loans, in cooperation total outlay of SAR 25.2 billion, compared to 12.7
with a number of non-profit organizations. million beneficiaries supported by a total outlay
The number of small businesses benefiting of SAR 30.7 billion in 2019. Of these beneficiaries,
from the program amounted to 77, with a total 62.6 percent received a full allowance, while 28.4
finance value of SAR 17.7 million. The number percent received partial support, and 9.0 percent
of productive families benefiting from the the minimum support (SAR 300).
program amounted to 39, and the total value
of finance was SAR 600 thousand.
Chart 2.1: Revenues of Companies Listed in the Telecommunications Sector
90
80
Billion SAR
70
60
2017 2018 2019 2020
36
Saudi Economy
SME Financing Guarantee Program 17.2 percent of the total ready-made residential
(Kafalah) products. The number of households benefiting
The SME Financing Guarantee Program (Kafalah) from the housing options totaled 1.1 million,
under the General Authority for Small and including 424 thousand households with subsidized
Medium Enterprises (Monsha’at) supported 7,176 housing loans. Moreover, 24 thousand housing
enterprises with total financing of SAR 15.2 billion units under the usufruct system were delivered to
in 2020, compared to 3,886 enterprises and SAR 7.4 the developmental housing beneficiaries. A total
billion in 2019. A breakdown of support by sector of 217 residential districts with completed basic
shows that enterprises benefiting from Kafalah infrastructures were allocated across Saudi Arabia,
Program amounted to 3,322 with total financing of providing 178.5 thousand residential land lots.
SAR 6.1 billion in the trade sector; 1,721 (SAR 4.7
billion) in the building and construction sector; 535 Pension and Social Insurance
(SAR 1.5 billion) in the industrial sector; 568 (SAR The number of subscribers to the civil pension
710.2 million) in the tourism and entertainment scheme of the Public Pension Agency (PPA)
sector; 336 (SAR 807.4 million) in the financial and increased by 1.6 percent to 1.26 million at the
business services sector; 498 (SAR 1.1 billion) in end of 2020 compared to 1.24 million at the
the social and personal services sector; 11 (SAR end of the preceding year. The funds (pension
36.1 million) in the mining and oil sector; 39 (SAR deductions and equivalent shares) collected from
113.1 million) in the agriculture and fishing sector; on-the-job subscribers increased by 4.0 percent
and 47 (SAR 144.7 million) in the electricity, gas to SAR 48.3 billion from SAR 46.4 billion in 2019.
and water sector. On the other hand, total disbursements by the
PPA to beneficiaries amounted to SAR 83.2 billion,
Housing rising by 6.4 percent over the preceding year.
In continuation of its role in achieving its strategic The number of surviving pensioners increased
objectives of increasing the supply of housing units by 6.1 percent to 731.1 thousand. The number of
and fulfilling the needs of citizens, the Ministry of deceased pensioners also rose by 0.9 percent to
Housing launched several programs to stimulate 263.3 thousand, and the number of heirs benefiting
the private and public sectors through building from pension payments increased by 8.9 percent
strategic partnerships between them. The ministry to 525.1 thousand.
also financed a number of companies to support
construction technologies in the private sector. Furthermore, the number of private and
Moreover, it worked on providing support for government establishments subscribing to
rent defaulters of citizens via the “Rent Support the social insurance scheme of the General
Program”. Additionally, it developed housing Organization for Social Insurance (GOSI) rose by
indicators and launched several services to 13.7 percent and 3.1 percent to 631.1 thousand
examine the quality of houses built from the ground and 1,329, respectively. However, the number of
up by individuals and of ready-made buildings in on-the-job subscribers decreased by 1.8 percent
the market. At the end of 2020, the total number to 8.4 million in 2020 from 8.5 million at the end of
of ready-made residential products under the the preceding year.
Developmental Housing Program stood at 424.6
thousand. Riyadh region accounted for the largest Population
share of 26.9 percent, followed by Makkah region GaStat estimates indicate that the total population
with 17.8 percent and the Eastern Region with of Saudi Arabia in 2020 rose by 2.3 percent to 35.0
37
million compared to 34.2 million in 2019. Saudis amounted to 1.1 million at the end of 2020,
constituted 61.2 percent (21.4 million) of the total. increasing by 0.5 percent from the preceding year.
Estimates of Saudi Arabia’s population by gender The number of Saudi female employees reached
indicate that the male population accounted 599.2 thousand, increasing by 7.7 percent over the
for 57.8 percent while the female population preceding year. On the other hand, the number
represented 42.2 percent of the total population. of non-Saudi male employees at the end of 2020
The Saudi male population represented 50.9 stood at 6.1 million, a 3.9 percent decline from the
percent while Saudi females constituted 49.1 preceding year. The number of non-Saudi female
percent of total Saudis. The non-Saudi male employees reached 222.8 thousand, decreasing by
population accounted for 68.6 percent and the 4.2 percent from 2019 (Table 2.5).
non-Saudi female population was 31.4 percent of
total non-Saudi population of Saudi Arabia (Table Unemployment
2.5). The latest GaStat data indicate that the overall
unemployment rate in Saudi Arabia increased
Labor Market to 7.4 percent in 2020. Unemployed Saudis
Number of Employees in the Public accounted for 12.6 percent of the total Saudi
Sector labor force. Unemployed Saudi males accounted
The latest statistics issued by the MHRSD indicate for 7.1 percent of the total Saudi male labor force.
that the number of employees in the government Unemployed Saudi females accounted for 24.4
sector (Saudis and non-Saudis) stood at 1.3 million percent of the total Saudi female labor force.
at the end of 2020. Saudis represented 96.1 Moreover, unemployed non-Saudis reached
percent of total employees in the government 2.6 percent of the total non-Saudi labor force in
sector, with the number of Saudi male employees Saudi Arabia (Table 2.5). It is worth noting that
reaching 725.7 thousand at the end of 2020 and Saudi Arabia made great efforts to mitigate the
that of Saudi female employees standing at 502.0 COVID-19 pandemic effects on the labor market
thousand. On the other hand, the number of non- and maintain the levels of Saudi employment.
Saudi male workers in the government sector Several initiatives and programs were launched in
amounted to 26.4 thousand, while that of non- this regard, most notably the payment of monthly
Saudi female workers was 23.2 thousand (Table compensation to Saudi workers in the private
2.5). sector through “SANID” scheme.
Number of Employees in the Private Specialized Credit Institutions (SCIs)

Sector SCIs continued to provide loans that contribute to
The latest figures issued by the MHRSD show that the achievement of the development objectives
the number of employees in the private sector in Saudi Arabia. Latest statistics indicate that the
(Saudis and non-Saudis) was 8.0 million at the actual loans disbursed by SCIs in 2020 totaled SAR
end of 2020, a decline of 2.5 percent from the 19.5 billion, decreasing by 27.9 percent, compared
preceding year. The ratio of Saudis working in the to SAR 27.1 billion in 2019. Total loan repayments
private sector to total employees in the sector amounted to SAR 21.6 billion, increasing by 3.1
stood at 21.8 percent. percent from 2019. The balance of outstanding
loans rose by 0.4 percent at the end of 2020 to SAR
A breakdown of employees in the private sector 237.4 billion compared to the end of the preceding
shows that the number of Saudi male employees year.
38
Saudi Economy
Saudi Industrial Development Fund 155.0 billion at the end of 2020, a decline of 1.2
(SIDF) percent from 2019.
Loan disbursements approved by the SIDF
amounted to SAR 4.7 billion in 2020, decreasing by Agricultural Development Fund (ADF)
49.5 percent compared to 2019. Loan repayments Loan disbursements approved by the ADF
stood at SAR 3.1 billion, decreasing by 38.6 percent amounted to SAR 1.2 billion in 2020, down by
compared to 2019. Total outstanding loans 19.7 percent from 2019. Total loan repayments
amounted to SAR 48.1 billion at the end of 2020, stood at SAR 686 million, increasing by 0.4 percent
increasing by 1.9 percent over 2019. With the aim over 2019. Total outstanding loans amounted to
of mitigating the impact of the COVID-19 pandemic, SAR 8.5 billion at the end of 2020, increasing by
the SIDF launched an initiative to support affected 6.5 percent over 2019. With regard to mitigating
industrial enterprises by restructuring loan the economic effects of the COVID-19 pandemic,
installments for small and medical enterprises in the ADF announced an initiative to defer payable
2020 and to consider postponing and restructuring installments for a period of six months for all
loan payments due in 2020 for medium and contracts with payments that had not been
large enterprises affected by the precautionary rescheduled before.
measures taken.
Social Development Bank (SDB)
Real Estate Development Fund The SDB’s total approved loan disbursements
(REDF) stood at SAR 8.7 billion in 2020, increasing by
Loan disbursements approved by the REDF 61.2 percent from 2019. Loan repayments stood
amounted to SAR 5.0 billion in 2020, down by 54.5 at SAR 7.5 billion, declining by 8.8 percent from
percent from 2019. Total loan repayments stood 2019. Outstanding loans balance amounted to SAR
at SAR 10.3 billion, increasing by 47.3 percent over 25.8 billion at the end of 2020, an increase of 6.4
2019. Total outstanding loans amounted to SAR percent from 2019. With the aim of mitigating the
Table 2.5: Selected Indicators for Population and Labor Force

2019 2020
Area
Male Female Total Male Female Total
Saudis 10,743,666 10,359,532 21,103,198 10,907,568 10,522,560 21,430,128
Population Non-Saudis 8,995,390 4,119,581 13,114,971 9,323,857 4,259,429 13,583,286
Total 19,739,056 14,479,113 34,218,169 20,231,425 14,781,989 35,013,414
Saudis 4.9 30.8 12.0 7.1 24.4 12.6
Unemployment rate* Non-Saudis 0.3 1.3 0.4 1.7 9.1 2.6
Total 2.2 21.3 5.7 4.0 20.2 7.4
Saudis 730,210 502,257 1,232,467 725,723 501,975 1,227,698

Government sector
Non-Saudis 26,939 23,655 50,594 26,380 23,219 49,599
employees
Total 757,149 525,912 1,283,061 752,103 525,194 1,277,297
Saudis 1,141,653 556,511 1,698,164 1,147,580 599,161 1,746,741
Private sector employees Non-Saudis 6,303,539 232,533 6,536,072 6,057,351 222,805 6,280,156
Total 7,445,192 789,044 8,234,236 7,204,931 821,966 8,026,897
Banking sector employees Total 39,664 7,517 47,181 38,512 7,537 46,049
Source: GaStat, MHRSD & SAMA.
*Unemployment rates are from the Labor Force Survey.

39
financial and economic impact of the COVID-19 Public Investment Fund (PIF)
pandemic, the SDB announced providing support The PIF, through its investment schemes,
with a value of SAR 12 billion covering a number seeks to accelerate the national economic
of qualitative tracks. This support aimed to development, achieve sustainable growth and
increase the financing portfolio for low-income motivate promising sectors. In order to achieve its
families and the portfolio supporting micro and objectives efficiently and maximize returns in line
small enterprises. The support also covered new with Saudi Vision 2030, the PIF aims to diversify
and existing medical enterprises to raise their its income sources by expanding its international
operational capacity, pace of work, and scope investments, building strategic partnerships and
of services. A new portfolio of SAR 2 billion was launching major initiatives. Moreover, assets under
created to provide financial support to nearly 1,000 the PIF’s management amounted to SAR 1.5 trillion
small and medium health facilities. Moreover, the at the end of 2020, and these assets contributed
support was channeled to portfolios of financing to creating a large number of direct and indirect
brokers to fund small businesses, in addition to job opportunities. The PIF’s investments were
extending the grace period for all enterprises distributed throughout various asset classes to
that were financed during 2019 and 2020 for an include direct and indirect investments in markets,
additional period of six months. public and private stocks, fixed income, real estate,
infrastructure, etc. In addition, the PIF executed
Domestic Loan and Subsidy Program many transactions in public global markets in 2020,
Actual loans disbursed under the Domestic seizing opportunities emerging from the COVID-19
Loan Program totaled SAR 661.8 million in 2020, pandemic.
increasing by 36.4 percent over the preceding year.
Total loan repayments stood at SAR 229.3 million, The PIF seeks to support economic transformation
recording a decrease of 43.5 percent compared in Saudi Arabia and stimulate investment in several
to 2019. In 2020, six loans were approved, four of sectors in both the medium and long term through
which were for educational projects and two for the development of major projects that are unique
healthcare projects. in terms of scope and value creation. In support
of these goals, the PIF established eight strategic
Total subsidies provided in 2020 stood at SAR 3.6 companies that contribute to accomplishing the
billion. Subsidies provided for imported fodder ambitious aspirations of the Saudi Vision 2030:
stood at SAR 1.4 billion, infant formula SAR 223.7 NEOM, the Red Sea Development Company,
million, livestock and poultry farmers SAR 2,034 Qiddiya Investment Company, Roshn Real Estate
million, King Salman Humanitarian Aid and Relief Company, Amaala Company, the National Unified
Centre SAR 2,137.5 million, Equestrian Club SAR Procurement Company (NUPCO), the Saudi
281.9 million, Falcon Club SAR 100 million, Camel Agriculture and Livestock Investment Company
Club SAR 22.9 million, King Abdulaziz Public Library (SALIC), and ACWA Power. NUPCO played a major
SAR 70.3 million, private schools SAR 7.5 million, role in addressing the COVID-19 pandemic as it
the International Dialogue Centre (KAICIID) SAR provided PCR tests to detect the virus and the
63.9 million, King Abdulaziz Center for National necessary protective equipment to limit its spread
Dialogue (KACND) SAR 54.9 million, the Secretariat in Saudi Arabia. It also contributed to the launch of
of the Finance Committee SAR 30 million, and several projects to raise the level of health services
Waqf libraries SAR 10 million. in the country, including “Wasfaty” service,
40
Saudi Economy
“Sehhaty” application, the health practitioners • Formation of the Supreme Committee for
application, and Virtual Clinics. Moreover, Energy Mix Affairs for Electricity Production
NUPCO has entered into a strategic partnership and Enabling Renewable Energy Sector to
to establish one of the largest logistics centers in be responsible for reaching decisions on all
the region with an area of 97,000 square meters in matters related to determining the optimal
King Abdullah Economic City (KAEC) to store and energy mix for electricity production, to
distribute medicines. supervise and enable the renewable energy
sector, and to be a reference in this regard.
Economic and Fiscal Reforms and Key • Approval of the Commercial Courts Law and
Resolutions the Chamber of Commerce and Industry Law.
In continuation of the efforts exerted by Saudi • Approval of the Securing Rights on Movable
Arabia to raise the efficiency of economic Assets Law and the amendment to the Law of
performance and achieve optimal utilization of Commercial Lien.
available resources, the Saudi economy witnessed • Approval of the establishment of a state-owned
a number of reforms and decisions in 2020, joint-stock company for mining services.
including: • Approval of the Mining Investment Law.
• Approval of the Saudi Central Bank Law and • Approval of the Unified Saudi Occupational
changing the name of the Saudi Arabian Classification.
Monetary Authority to the Saudi Central Bank. • Approval of changing the National Industrial
• Approval of the regulations of the Saudi Clusters Development Program to a center
Export-Import (EXIM) Bank. named the National Industrial Development
• Approval of the establishment of the Saudi Center, and approval of its regulations.
Tourism Authority. • Approval of the unified Saudi classification of
• Establishment of a number of commissions educational levels and specializations.
to promote Saudi Arabia’s heritage and • Approval of the use of an automated system to
attract tourists, namely the Literature, collect details on property ownership.
Publishing and Translation Commission; • Approval of the Social Security Law.
Museums Commission, Heritage Commission; • Approval of underwriting of Saudi Arabia’s
Film Commission; Libraries Commission; shares in the capital of the International
Architecture and Design Commission; Music Finance Corporation (IFC).
Commission; Theater and Performing Arts • Approval of the regulations of the State
Commission; Visual Arts Commission; Culinary Properties General Authority.
Arts Commission; and Fashion Commission. • Approval of the Volunteer Work Law.
• Approval of the launch of the national program
for information technology (IT) development.
• Approval of the Digital Economy Policy in Saudi
Arabia.
41
3
ENERGY,
INDUSTRY
AND MINERAL
RESOURCES
This decline was attributed to the general decrease
Energy, Industry and

in demand of most countries on the backdrop of
Mineral Resources
the COVID-19 pandemic. The average demand of
non-OECD countries went down by 6.1 percent
to 48.9 million bpd in 2020 compared to 52.1
World oil prices and production volumes million bpd in 2019. The average demand of OECD
witnessed a sharp decline in 2020 as a result of countries registered a decrease of 11.6 percent to
the repercussions of COVID-19 pandemic on the 42.1 million bpd in 2020 compared to 47.6 million
global economy. According to OPEC data, oil bpd in 2019 (Table 3.1).
prices decreased by 35.5 percent in 2020, with
the average price of Arab Light crude oil reaching The decline in non-OECD oil demand was led by
$41.91 per barrel in 2020 compared to $64.96 per
barrel in 2019. Saudi Arabia’s production of crude Chart 3.1: World Average Oil Demand
oil decreased by 5.8 percent to 3,372.0 million
120
barrels in 2020, with a daily production average
100
of 9.21 million barrels.
80
(Million bpd)
60
World Oil Demand
40
According to March 2021 estimates of the
20
International Energy Agency (IEA), the average
0
world oil demand declined by 8.7 percent to 91.0 2018 2019 2020
million barrels per day (bpd) in 2020, compared to OECD countries
99.7 million bpd in 2019 (Table 3.1 and Chart 3.1). Non-OECD countries
World
Table 3.1: World Average Oil Demand*

Demand is 100m barrels a day average +-10%, supply = demand

)Million bpd(
Change
2018 2019 2020
2019 2020
North America 25.5 25.7 22.6 0.8 -12.1

same EU Western Europe 14.3 14.1 12.4 -1.4 -12.1
Pacific countries 8.1 7.8 7.1 -3.7 -9.0
OECD 47.9 47.6 42.1 -0.6 -11.6
Non-OECD
Former Soviet Union 4.6 4.8 4.6 4.3 -4.9
China 13.0 13.7 13.9 5.4 1.7
Eastern Europe 0.8 0.8 0.7 0.0 -10.0
South America 6.3 6.2 5.6 -1.6 -9.7
Other Asia 14.1 14.0 12.6 -0.7 -9.8
Middle East 8.3 8.3 7.6 0.0 -7.8
Africa 4.2 4.3 3.8 2.4 -10.5
Total non-OECD demand 51.3 52.1 48.9 1.6 -6.1
Total world demand 99.2 99.7 91.0 0.5 -8.7

*Including primary stock, marine bunkers & refinery fuel.
Source: IEA Report, March 2021.
O2 Emission
44
Energy, Industry and Mineral Resources
Africa with a 10.5 percent decrease (to 3.8 million 2019. On the other hand, average oil production in
bpd), followed by Eastern Europe with a 10.0 Norway rose by 14.9 percent in 2020 compared to a
percent decrease (to 0.7 million bpd), other Asian decline of 5.9 percent in 2019. China also recorded
countries with a 9.8 percent decrease (to 12.6 an increase of 1.3 percent compared to a rise of 2.9
million bpd), South America with a 9.7 percent percent in the preceding year (Table 3.2 and Chart
decrease (to 5.6 million bpd), and Middle Eastern 3.2).
countries with a 7.8 percent decrease (to 7.6 million
bpd). In contrast, the demand in China recorded an World Oil Prices
increase of 1.7 percent to 13.9 million bpd (Table Average world oil prices sharply decreased in 2020.
3.1). The price of the Arab Light crude oil averaged
$41.91 per barrel, a decline of 35.5 percent ($23.0
World Oil Production per barrel), compared to an average price of $64.96
According to the IEA estimates in March 2021, per barrel in 2019 (Table 3.3). The average price of
world oil production in 2020 averaged 93.9 million
bpd, decreasing by 6.5 percent, as compared to
Chart 3.2: World Average Crude Oil Production
100.5 million bpd in 2019 (Table 3.2). The average
120
US production decreased by 3.4 percent compared
to a rise of 10.4 percent in 2019. The average OECD 100
80
production declined by 2.2 percent compared to
(Million bpd)
a rise of 6.0 percent in 2019. In addition, the UK 60
recorded a decline of 6.2 percent compared to 40
an increase of 1.8 percent in 2019. The average 20

0
Canadian production decreased by 4.2 percent
2018 2019 2020
compared to an increase of 2.4 percent in 2019.
Total OPEC
The OPEC average output also decreased by 11.5 Total OECD
percent compared to a decline of 6.6 percent in Total world production
Table 3.2: World Average Oil Production*

)Million bpd(
Change
KSA 10% 2018 2019 2020
2019 2020
OPEC 37.38 34.90 30.88 -6.6 -11.5
OECD 26.90 28.51 27.89 6.0 -2.2
Non-OPEC 62.94 65.60 63.06 4.2 -3.9
Former Soviet Union 14.56 14.64 13.50 0.5 -7.8
USA 15.54 17.16 16.57 10.4 -3.4
China 3.81 3.92 3.97 2.9 1.3
Canada 5.41 5.54 5.31 2.4 -4.2
Mexico 2.07 1.93 1.93 -6.8 0.0
UK 1.11 1.13 1.06 1.8 -6.2
Norway 1.85 1.74 2.00 -5.9 14.9
Total world supply 100.32 100.50 93.93 0.2 -6.5

*Including condensates & natural gas liquids.
Source: IEA Report, March 2021.
45
OPEC basket decreased by 35.2 percent to $41.47 calculations using the OPEC Basket Deflator
per barrel in 2020 compared to an average price of with base year 2005. The real price of Arab Light
$64.04 per barrel in 2019. Moreover, the average averaged $36.80 per barrel, decreasing by 36.8
price of Brent crude declined by 35.1 percent to percent, compared to $58.19 per barrel in 2019
$41.67 per barrel in 2020 from $64.19 per barrel (Table 3.4). The average real price of Brent crude
in 2019. West Texas Intermediate’s price averaged also declined by 36.4 percent to $36.59 a barrel in
$39.49 per barrel in 2020, decreasing by 30.7 2020 from $57.50 a barrel in the preceding year.
percent, compared to $57.02 per barrel in 2019 The average real price of the OPEC basket went
(Table 3.3 and Chart 3.3). down by 36.5 percent to $36.42 a barrel compared
to $57.36 a barrel in the preceding year (Table 3.4
Real Oil Prices and Chart 3.4).
Real oil prices decreased in 2020, based on
Chart 3.3: Average Spot Oil Prices
140
120
USD per barrel
100
80
60
40
20
0
2014 2015 2016 2017 2018 2019 2020
Arab Light OPEC basket North Sea (Brent) West Texas Intermediate
Table 3.3: Spot Prices for Selected Crude Streams (Average)
)USD per barrel(
Year Arab Light OPEC basket North Sea (Brent) West Texas Intermediate
2004 34.53 36.05 38.23 41.44
2005 50.21 50.64 54.37 56.51
2006 61.10 61.08 65.14 66.04
2007 68.75 69.08 72.55 72.29
2008 95.16 94.45 97.37 100.00
2009 61.38 61.06 61.68 61.88
2010 77.82 77.45 79.60 79.42
2011 107.82 107.46 111.36 94.99
2012 110.22 109.45 111.62 94.10
2013 106.53 105.87 108.62 97.96
2014 97.18 96.29 99.08 93.17
2015 49.85 49.49 52.41 48.73
2016 40.96 40.76 43.76 43.27
2017 52.59 52.43 54.17 50.82
2018 70.59 69.78 71.22 65.16
2019 64.96 64.04 64.19 57.02
2020 41.91 41.47 41.67 39.49

Source: OPEC.
46
It should be noted that 2020 real oil prices were barrels in 2019. Proven reserves of natural gas also
lower than those in 1980 although 2020 nominal increased by 0.4 percent to 326.1 trillion standard
prices were higher than those in 1980. For instance, cubic feet at the end of 2020 compared to 324.9
the average real price of Brent crude stood at trillion standard cubic feet at the end of 2019.
$36.59 a barrel during 2020, lower by $46.5 a barrel
than its price in 1980 ($83.10 a barrel). In contrast, Saudi Crude Oil Output
the nominal price of Brent crude stood at $41.67 Saudi Arabia’s production of crude oil decreased
per barrel in 2020, higher by $3.78 a barrel than its by 5.8 percent to 3,372.0 million barrels in 2020
nominal price in 1980 ($37.89 a barrel) (Table 3.4). compared to 3,580.0 million barrels in 2019.
Accordingly, Saudi Arabia’s average daily output
Saudi Arabia’s Reserves of Crude Oil amounted to 9.21 million bpd in 2020 (Table 3.5).
and Natural Gas
Saudi Arabia’s proven reserves of crude oil stood Domestic Production and Consumption
at 267.08 billion barrels at the end of 2020, slightly of Refined Products
rising by 0.004 percent, compared to 267.07 billion Saudi Arabia’s production of refined products
Chart 3.4: Real Oil Prices (Base Year = 2005)
100
80
USD per barrel
60
40
20
0
1990 2000 2012 2016 2017 2018 2019 2020
Arab Light North Sea (Brent) OPEC basket
Table 3.4: Nominal and Real Oil Prices (Base Year = 2005)
)USD per barrel(
Nominal Oil Prices Real Oil Prices*

Year
Arab Light North Sea (Brent) OPEC basket Arab Light North Sea (Brent) OPEC basket
1980 28.67 37.89 28.64 62.85 83.07 62.79
1990 20.82 23.99 22.26 28.40 32.73 30.36
2000 26.81 28.44 27.60 35.64 37.81 36.69
2012 110.22 111.62 109.45 93.06 94.24 92.40
2013 106.53 108.62 105.87 88.95 90.70 88.40
2014 97.18 99.08 96.29 80.34 81.91 79.60
2015 49.85 52.41 49.49 46.47 48.86 46.13
2016 40.96 43.76 40.76 38.32 40.94 38.13
2017 52.59 54.17 52.43 48.46 49.92 48.31
2018 70.59 71.22 69.78 61.91 62.46 61.20
2019 64.96 64.19 64.04 58.19 57.50 57.36
2020 41.91 41.67 41.47 36.80 36.59 36.42

*Real prices have been calculated by using the OPEC Basket Deflator with base year 2005.
Source: OPEC.
47
decreased by 13.8 percent to 796.86 million barrels Total domestic consumption of refined products,
in 2020 from 924.94 million barrels in 2019. Thus, crude oil and natural gas decreased by 2.45 percent
its daily output of refined products averaged 2.17 to 1,527.75 million barrels (4.17 million bpd) in
million bpd (Table 3.6). 2020 compared to 1,566.12 million barrels (4.29
million bpd) in 2019 (Table 3.7).
The decline in Saudi Arabia’s production of refined
products was driven by decreases of 6.6 percent A breakdown of public consumption shows that
in diesel production to account for 45.2 percent natural gas accounted for 44.7 percent, diesel
of total refined products output, 14.1 percent in 12.9 percent, gasoline 12.0 percent, fuel oil 13.3
gasoline production to account for 20.9 percent percent, and crude oil 11.4 percent. A breakdown
of the total, 18.4 percent in fuel oil production to of oil industry consumption indicates that natural
account for 15.8 percent of the total, 37.2 percent gas accounted for 64.9 percent, fuel gas 15.1
in jet fuel production to account for 6.7 percent of percent, diesel 3.1 percent, and fuel oil 8.5 percent
the total, 12.1 percent in naphtha production to (Table 3.7).
account for 5.6 percent of the total, 22.8 percent in
coke production to account for 2.6 percent of the Saudi Arabia’s Exports of Crude Oil and
total, 11.9 percent in liquefied petroleum gas (LPG) Refined Products
production to account for 1.6 percent of the total, Saudi Arabia’s total oil exports (crude and refined)
and 11.0 percent in Asphalt production to account stood at 2,831.01 million barrels (7.7 million bpd)
for 1.6 percent of the total (Table 3.6). in 2020. Its crude oil exports decreased by 4.3
percent to 2,458.94 million barrels (6.72 million
Table 3.5: Saudi Crude Oil Output
)Million barrels(
Change
2017 2018 2019 2020
2019 2020
Total output 3,635.3 3,765.1 3,580.0 3,372.0 -4.9 -5.8
Daily average 9.96 10.32 9.81 9.21 -4.9 -6.1

Source: MoE.
KSA capacity = 30 barrels a day
Table 3.6: Saudi Output of Refined Products
)Million barrels(
Change
Product 2016 2017 2018 2019 2020
2019 2020
LPG 15.61 15.55 17.06 14.67 12.91 -14.1 -11.9
Gasoline 202.35 203.56 199.05 193.57 166.34 -2.8 -14.1
Naphtha 75.77 74.28 60.10 50.86 44.73 -15.4 -12.1
Jet fuel (kerosene) 89.50 90.54 95.80 84.72 53.17 -11.6 -37.2
Diesel 384.62 393.93 391.55 385.75 360.36 -1.5 -6.6
Fuel oil 168.31 170.13 166.20 154.54 126.14 -7.0 -18.4
Asphalt 18.25 16.81 14.07 14.31 12.73 1.7 -11.0
Coke 79.85 84.08 84.45 26.53 20.49 -68.6 -22.8
Total 1,034.26 1,048.89 1,028.30 924.94 796.86 -10.1 -13.8

Source: MoE.
48
bpd) in 2020 compared to 2,568.90 million barrels North America with 8.3 percent of total exports of
(7.03 million bpd) in 2019. Refined product exports crude oil and 0.8 percent of total exports of refined
also fell by 21.6 percent to 372.07 million barrels products. The Middle Eastern countries accounted
(averaging 1.0 million bpd) in 2020 compared to for 3.1 percent of Saudi Arabia’s total crude oil
474.41 million barrels (1.3 million bpd) in 2019 exports and 15.8 percent of its refined product
(Table 3.8). exports. Finally, African countries accounted for 3.0
percent and 21.5 percent of total exports of crude
Asia and the Far East region dominated the bulk oil and refined products, respectively.
of Saudi Arabia’s exports of crude oil and refined
products in 2020, accounting for 73.5 percent of Saudi Arabia’s Petrochemical Industry
total crude oil exports and 30.4 percent of total Production of the Saudi Basic Industries Corporation
exports of refined products (Chart 3.5). Western (SABIC) in its plants in Saudi Arabia rose by 2 percent
Europe countries came second, accounting for 11.3 to 66.9 million metric tons in 2020 against 65.9
percent of total crude oil exports and 31.5 percent million metric tons in 2019. The rise in production
of total exports of refined products, followed by was due to the increase in feedstock supplies, the
Table 3.7: Domestic Consumption of Refined Products, Crude Oil and Natural Gas
)Million barrels(
Product 2016 2017 2018 2019 2020
A. Public consumption
LPG 13.40 12.87 13.23 12.59 13.26
Gasoline 203.37 208.00 194.49 194.09 162.44
Jet fuel & kerosene 32.05 36.14 37.88 36.72 15.39
Diesel 248.54 207.91 182.75 187.89 174.43
Fuel oil 166.07 180.29 173.96 168.58 179.55
Crude oil 182.41 167.37 149.74 155.16 154.48
Asphalt 19.14 20.36 20.73 20.66 19.35
Lubricating oils 1.48 1.34 1.51 27.55 24.52
Natural gas 557.44 573.78 581.36 579.74 604.88
Naphtha 1.81 11.19 8.92 0.75 0.30
Reformate -- 10.48 10.16 6.18 4.14
Subtotal 1,425.72 1,429.73 1,374.72 1,389.89 1,352.74
B. Oil industry consumption
LPG 4.58 4.39 3.91 4.12 3.73
Fuel oil 6.12 6.61 6.98 8.37 14.90
Diesel 8.03 7.68 7.71 4.67 5.51
Fuel gas 34.33 34.40 33.98 29.63 26.50
Crude oil 0.04 0.01 0.00 0.00 0.00
Natural gas 106.02 121.48 127.31 128.52 113.57
Others 5.46 5.64 7.66 0.93 10.81
Subtotal 164.58 180.21 187.56 176.23 175.02
Total 1,590.30 1,609.94 1,562.27 1,566.12 1,527.75

Source: MoE.
49
Table 3.8: Saudi Exports of Crude Oil and Refined Products (by Destination)
)Million barrels(
2018 2019 2020 Share 2020
Refined Refined Refined Refined

Exports to Crude oil Crude oil Crude oil Crude oil
products products products products
North America 372.43 16.66 204.59 10.03 202.91 2.80 8.3 0.8
South America 25.72 0.69 24.33 1.64 18.92 0.63 0.8 0.2
Western Europe 317.28 150.90 291.07 147.17 276.87 117.06 11.3 31.5
Middle East 97.40 337.02 97.09 71.57 77.43 58.64 3.1 15.8
Africa 59.80 83.70 64.61 116.64 73.82 79.81 3.0 21.5
Asia & Far East 1,815.64 129.05 1,885.73 125.89 1,807.54 113.13 73.5 30.4
Oceania 2.34 1.47 1.47 1.48 1.45 0.00 0.1 0.0
Total 2,690.61 719.49 2,568.90 474.41 2,458.94 372.07 100.0 100.0

*Including LPG & natural gas.
Source: MoE.
Chart 3.5: Saudi Exports of Crude Oil and Refined Products by Destination (Percentage)
Crude oil Refined products

15.8 21.5
0.1
8.3
73.5 0.8
11.3
31.5
30.4
3.1
3.0 0.2
0.8
Asia & Far East South America North America Africa
Middle East Western Europe Oceania
Table 3.9: Production of Minerals in Saudi Arabia
Year Gold (kg) Silver (kg) Copper (ton) Zinc (ton)

2015 5,089 4,500 46,253 39,008
2016 6,946 4,710 110,000 41,610
2017 10,333 5,069 67,097 21,787
2018 11,765 5,322 60,340 18,000
2019 12,593 7,123 88,491 51,856
2020* 13,222 7,479 92,915 54,448
*Estimates.
Source: Deputy Ministry for Mineral Resources, MIM.
50
improvement in performance reliability of the copper, zinc, iron, phosphate, accompanied metals,
company’s plants and the decrease in the number and gems, like peridot). The number of licenses
of regular maintenance works in 2020. However, of construction material quarries reached 1,334
exports of products from SABIC’s plants in Saudi for various construction materials, such as sand,
Arabia declined by 1 percent1 in 2020 compared to crusher materials and decoration stones.
the preceding year. The decline in product exports
was due to the decline in demand as a result of the With regard to the production of gold, silver and
COVID-19 pandemic. associated minerals from Mahd Al-Dhahab, Al-
Sukhaybarat, Al-Hajar, Bulghah and Al-Amar, the
Mineral Resources output of gold stood at 13,222 kg and that of silver
The Deputy Ministry for Mineral Resources at the stood at 7,479 kg in 2020. Table 3.9 shows the
Ministry of Industry and Mineral Resources (MIM) output of minerals in Saudi Arabia during 2015-
supervises mining activities in Saudi Arabia. Its tasks 2020. It can be noticed from the table that Saudi
include encouraging mining investments, providing Arabia’s production of copper and zinc during
supporting services and consultations, and issuing 2020 increased to 92,915 tons and 54,448 tons,
mining licenses and concessions in accordance with respectively.
the laws and regulations in force. At the end of
2020, the number of valid mining licenses stood at Total quantities extracted in 2020 were estimated
2,062. These included 556 licenses for exploration, at more than 514,756 thousand tons of various ores
which enable their holders to conduct detailed such as limestone, silica sand, salt, clay, feldspar,
studies on the mineral ores required under the industrial marble, iron sand, kaolin, gypsum,
exploration license; and 69 licenses for small-sized marble blocks, granite blocks, phosphate, bauxite,
mines for various minerals, such as silica sand, crusher materials and sand used in building and
gypsum, salt, limestone, clay, pozzolan, industrial construction. Table 3.10 shows Saudi Arabia’s
marble, low-concentration steel (cement industry), various extracted ores during 2016-2020.
dolomite, feldspar, baryte, sandstone, perlite and
pyrophyllite. The number of licenses of mining Industrial Licensing
and raw material quarries stood at 33 and 70, The Ministry of Industry and Mineral Resources
respectively, for various metal ores (such as gold, (MIM) issued industrial licenses in 2020 for 903
new factories in various industrial activities with a
Chart 3.6: Growth of SEC’s Electricity Sales
total capital of SAR 23.5 billion, creating more than
(2017 - 2020)
39.4 thousand job opportunities.
100
80 By the end of 2020, the total cumulative number

Thousand MWh
60 of industrial units in Saudi Arabia licensed by the

40 MIM rose to 8,063, providing 966.3 thousand job
20 opportunities.
0
2017 2018 2019 2020 Electricity Generation and
Central Western Consumption
Eastern Southern The Saudi Electricity Company (SEC)’s sales of
1
The above indicators represent SABIC’s production and exports from its investments in subsidiaries and joint ventures and operations in Saudi
Arabia.
51
electricity in 2020 amounted to 289.3 million Arabia, followed by industrial consumption with
megawatt-hours (MWh). Residential consumption 20.0 percent (57.8 million MWh). Commercial
accounted for 47.6 percent (137.6 million consumption came third with 14.4 percent
MWh) of total electricity consumption in Saudi (41.6 million MWh), followed by government
Table 3.10: Mineral Ores Extracted (Thousand Ton)
Type 2016 2017 2018 2019 2020*
Limestone 63,300 66,150 69,457 72,930 72,283
Clay 9,240 9,702 10,187 10,696 10,161
Salt 2,400 2,520 2,646 2,778 2,639
Silica sand 1,300 1,365 1,433 1,505 1,430
Crusher materials (pebbles) 347,000 364,000 382,200 401,310 381,245
Sand 22,155 23,000 24,000 25,000 23,750
Iron sand 706 741 778 817 776
Gypsum 3,000 3,150 3,307 3,472 3,298
Industrial marble 2,800 2,940 2,947 3,094 2,939
Marble blocks 12 13 13 14 13
Granite blocks 1,053 1,105 1,160 1,218 1,157
Limestone blocks 104 109 114 120 114
Kaolinite 196 206 216 227 215
Barite 41 -- -- -- --
Feldspar 188 197 206 216 205
Basalt 30 32 33 35 33
Pozzolan 504 529 555 583 553
Dolomite 2,131 2,237 2,348 2,465 2,341
Schist 604 634 665 600 570
Pyrophyllite 42 44 46 48 45
Low-grade bauxite 968 1,016 438 297 282
Bauxite 3,800 3,990 4,623 4,100 4,305
Diammonium phosphate 5,400 5,670 5,444 6,098 6,402

*Estimates.
Source: Deputy Ministry for Mineral Resources, MIM.
Table 3.11: Electricity Generation Capacity and Number of Subscribers for FY 2020 (1441/1442H)
)Megawatt(
Actual Electricity power sold

No. of
Region generation Peak load
Residential Commercial Government Industrial Other subscribers
capacity
Central 15,000 21,000 46,389,000 15,668,000 10,136,000 6,934,000 7,296,000 3,232,200
Eastern 24,001 18,001 27,033,000 8,447,000 8,157,000 36,397,000 2,968,000 1,799,700
Western 17,001 15,001 46,166,000 13,309,000 12,103,000 13,360,000 4,661,000 3,594,100
Southern 4,001 6,000 18,070,000 4,182,000 5,076,000 1,189,000 1,787,000 1,516,500
Total 64,800 62,200 137,658,000 41,606,000 35,472,000 57,880,000 16,712,000 10,142,500
Source: SEC.
Note: Data were reclassified in 2020 by the source.
52
consumption with 12.3 percent (35.4 million
MWh). The peak load of electricity was 62,200
megawatts in 2020, and the actual capacity of
electricity generation was 64,800 megawatts. The
number of subscribers to the utility in Saudi Arabia
amounted to 10.1 million at the end of 2020. The
western region accounted for the largest share
of total subscribers with 35.4 percent (3.6 million
subscribers), followed by the central region with
31.9 percent (3.2 million), the eastern region with
17.7 percent (1.8 million), and the southern region
with 15.0 percent (1.5 million) of the total (Table
3.11 and Chart 3.6).
53
4
NATIONAL
ACCOUNTS
AND SECTORAL
DEVELOPMENT
sector decreased by 0.5 percent in 2020 compared

to a rise of 2.2 percent in 2019 (Table 4.1).
National Accounts and

Sectoral Development
Preliminary data also show that GDP at current
prices contracted by 11.7 percent to SAR 2,625.4
billion in 2020 compared to an increase of 0.8
percent in 2019. This was mainly attributable to a
Gross Domestic Product (GDP) for 2020 contraction of 34.4 percent in the oil sector against
Preliminary data from the General Authority for a decline of 6.0 percent in the preceding year.
Statistics (GaStat) indicate that GDP at constant The non-oil sector fell by 1.5 percent compared
prices (2010=100) contracted by 4.1 percent to SAR to a growth of 4.2 percent in the preceding year.
2,531.4 billion during 2020 compared to a growth The non-oil private sector posted a decline of 1.9
of 0.3 percent in 2019. This was attributable to a percent compared to a growth of 4.1 percent in the
contraction of 6.7 percent in the oil sector in 2020 preceding year. Moreover, the non-oil government
compared to a decline of 3.6 percent in 2019. sector declined by 0.7 percent compared to a 4.4
The non-oil sector fell by 2.3 percent in 2020 percent rise in 2019. On the other hand, the non-
against a growth of 3.3 percent in the preceding oil GDP implicit deflator2 increased by 0.9 percent
year. The non-oil private sector declined by 3.1 in 2020 against the same rise in the preceding year.
percent compared to a growth of 3.8 percent in the
preceding year. Moreover, the non-oil government
Table 4.1: GDP by Sector

)Million SAR(
2019 2020*
Value Share Change Value Share Change
At current prices
1. Oil sector 926,338 31.2 -6.0 607,704 23.1 -34.4
2. Non-oil sector 2,026,064 68.1 4.2 1,995,724 76.0 -1.5
a. Private sector 1,354,322 45.5 4.1 1,328,548 50.6 -1.9

b. Government sector 671,743 22.6 4.4 667,175 25.4 -0.7
GDP (excluding import duties) 2,952,403 99.3 0.8 2,603,428 99.2 -11.8
3. Import duties 21,223 0.7 9.6 22,014 0.8 3.7
GDP 2,973,626 100.0 0.8 2,625,442 100.0 -11.7
At constant prices (2010 = 100)
1. Oil sector 1,096,170 41.5 -3.6 1,023,238 40.4 -6.7
2. Non-oil sector 1,527,304 57.9 3.3 1,491,735 58.9 -2.3
a. Private sector 1,073,744 40.7 3.8 1,040,406 41.1 -3.1
b. Government sector 453,561 17.2 2.2 451,330 17.8 -0.5
GDP (excluding import duties) 2,623,474 99.4 0.3 2,514,973 99.4 -4.1
3. Import duties 16,338 0.6 8.8 16,432 0.6 0.6
GDP 2,639,811 100.0 0.3 2,531,405 100.0 -4.1
Implicit deflator (2010 = 100)
GDP 112.6 -- 0.5 103.7 -- -7.9
1. Oil sector 84.5 -- -2.5 59.4 -- -29.7
2. Non-oil sector 132.7 -- 0.9 133.8 -- 0.9
*Preliminary data.
Source: GaStat.
56
National Accounts and Sectoral Development
Contribution of Sectors to GDP for at constant prices (2010=100) increased to 17.9
2020 percent in 2020, up from 17.3 percent in 2019.
Contribution of Private Sector to GDP
The contribution of the private sector to GDP Moreover, the contribution of the government
at constant prices (2010=100) increased to 41.4 sector increased to 25.4 percent of the total GDP at
percent in 2020, up from 40.9 percent in 2019 current prices in 2020 compared to 22.6 percent in
(Table 4.2 and Chart 4.1). the preceding year.
The contribution of the private sector to GDP at Contribution of Oil Sector to GDP
current prices also increased to 50.6 percent in The contribution of the oil sector to GDP at constant
2020 against 45.5 percent in the preceding year prices (2010=100) decreased to 40.7 percent in
(Table 4.1). 2020, down from 41.8 percent in 2019.
Contribution of Government Sector to The contribution of the oil sector to GDP at current
GDP prices also decreased to 23.1 percent in 2020 from
The contribution of the government sector to GDP 31.2 percent in the preceding year.
Table 4.2: Contribution of the Private and Government Sectors to GDP (at 2010 Constant Prices)
GDP** Private sector Government sector Oil sector
Year (Million (Million (Million (Million
Share Change Share Change Share Change
SAR) SAR) SAR) SAR)
2016 2,566,928 1,000,227 39.0 0.1 428,402 16.7 0.6 1,138,299 44.3 3.6
2017 2,549,820 1,015,210 39.8 1.5 431,442 16.9 0.7 1,103,168 43.3 -3.1
2018 2,616,070 1,034,635 39.5 1.9 443,789 17.0 2.9 1,137,646 43.5 3.1
2019 2,623,474 1,073,744 40.9 3.8 453,561 17.3 2.2 1,096,170 41.8 -3.6
2020* 2,514,973 1,040,406 41.4 -3.1 451,330 17.9 -0.5 1,023,238 40.7 -6.7
*Preliminary data. **Excluding import duties.
Source: GaStat.
Chart 4.1: Contribution of Economic Sectors to GDP in 2020 at Constant Prices

(Excluding Import Duties) (Percentage)
17.9
40.7
41.4
Government sector Oil sector Private sector
2
The implicit deflator for GDP is a measure of the general level of prices of all final goods in an economy in a year. Unlike the consumer price
index, which measures the final consumption only, GDP deflator measures inflation rate at the macroeconomic level. The GDP deflator targets all
consumption, investment and government sectors based on their respective contributions to the GDP.
57
Contribution of Key Economic Contribution of Mining and Quarrying

Activities to Real GDP to Real GDP
Contribution of Services to Real GDP The contribution of mining and quarrying (including
The contribution of the services (including crude oil and natural gas) to GDP at constant prices
wholesale and retail trade; restaurants and hotels; (2010=100) fell to 37.7 percent in 2020 from 38.5
transport, storage and telecommunications; percent in 2019. Mining and quarrying at constant
finance, insurance, real estate and business prices (2010=100) also declined by 6.0 percent in
services; community, social and personal services; 2020 compared to a decline of 3.6 percent in the
and producers of government services) to GDP preceding year (Table 4.3 and Chart 4.2).
at constant prices (2010=100) increased to 43.3
percent in 2020 against 42.3 percent in 2019. In Contribution of Industry to Real GDP
contrast, the services at constant prices (2010=100) The contribution of industry (including oil refining)
decreased by 1.8 percent in 2020 compared to a to GDP at constant prices (2010 = 100) declined
growth of 4.4 percent in the preceding year (Table to 11.5 percent in 2020, down from 12.0 percent
4.3 and Chart 4.2).
Table 4.3: Contribution of Mining and Quarrying Activity and Industrial Activity to GDP (at 2010 Constant Prices)
GDP** Services activity*** Mining & quarrying activity**** Industrial activity*****
Year (Million (Million Share Change (Million Share Change (Million Share Change
SAR) SAR) SAR) SAR)
2016 2,566,928 1,017,851 39.7 0.8 1,046,785 40.8 2.8 307,987 12.0 3.2
2017 2,549,820 1,036,885 40.7 1.9 1,010,104 39.6 -3.5 311,982 12.2 1.3
2018 2,616,070 1,063,290 40.6 2.5 1,046,918 40.0 3.6 318,529 12.2 2.1
2019 2,623,474 1,109,909 42.3 4.4 1,008,789 38.5 -3.6 313,553 12.0 -1.6
2020* 2,514,973 1,089,827 43.3 -1.8 948,356 37.7 -6.0 289,323 11.5 -7.7
*Preliminary data. **Excluding import duties. ****Including crude oil & natural gas. *****Including oil & oil refining.
***Including wholesale & retail trade; restaurants & hotels; transport, storage, & telecommunications; finance, insurance, real estate, & business services; communi-
ty, social & personal services; & producers of government services.
Source: GaStat.
Chart 4.2: Contribution of Economic Activities to GDP in 2020 at Current Prices

(Excluding Import Duties) (Percentage)
11.5
4.7
37.7
43.3
2.4 1.3
Agriculture Services Electricity, water & gas

Construction & building Mining & quarrying Industrial
58
in 2019. Industry at constant prices (2010=100) Nominal Gross Domestic Product
decreased by 7.7 percent in 2020 compared to a Developments by Key Economic
decrease of 1.6 percent in the preceding year (Table Activities
4.3 and Chart 4.2). An analysis of GDP at current prices by detailed
key economic production activities shows that
Contribution of Other Key Economic most activities contracted in 2020 at varying
Activities to Real GDP degrees. Mining and quarrying decreased by 35.7
The contribution of agricultural activity (including percent compared to a decrease of 6.3 percent
agriculture, forestry and fishing) to GDP at constant in 2019. Manufacturing industries (including oil
prices (2010=100) was 2.4 percent in 2020 against refining) declined by 8.7 percent against a decline
2.3 percent in 2019. The decline in this activity of 1.3 percent in the preceding year. In addition,
at constant prices (2010=100) was 1.7 percent in transport, storage and telecommunications
2020 compared to a growth of 1.3 percent in the decreased by 5.4 percent against a 6.1 percent rise
preceding year. in the preceding year. Wholesale and retail trade,
restaurants and hotels decreased by 4.5 percent
The contribution of construction and building to against a 6.4 percent growth in 2019. Public utilities
GDP at constant prices (2010=100) was 4.7 percent (electricity, gas and water) fell by 3.3 percent
in 2020 compared to 4.5 percent in 2019. This compared to a decrease of 4.2 percent in the
activity decreased by 0.4 percent in 2020 against a preceding year. Furthermore, government services’
growth of 4.6 percent in the preceding year. producers decreased by 0.1 percent compared to
a growth of 4.2 percent in the preceding year. On
The contribution of electricity, gas and water to the other hand, construction and building grew by
GDP at constant prices (2010=100) was 1.3 percent 3.1 percent compared to an increase of 8.0 percent
in 2020 compared to the same contribution in the preceding year. Agriculture, forestry and
percentage in the preceding year. fishing increased by 1.3 percent compared to a 1.2
percent rise in 2019. Finance, insurance, real estate
This activity contracted by 2.1 percent in 2020 and business services registered an increase of 0.7
compared to a decrease of 4.0 percent in the percent against an increase of 4.8 percent in the
preceding year (Table 4.4 and Chart 4.2). preceding year (Table 4.5).
Table 4.4: Contribution of Some Economic Activities to GDP (at 2010 Constant Prices)
(Million SAR)
Agricultural Construction Electricity, gas

Year GDP Share Change Share Change Share Change
activity** & building & water
2016 2,566,928 60,122 2.3 0.6 121,203 4.7 -3.2 33,688 1.3 2.3
2017 2,549,820 60,422 2.4 0.5 117,259 4.6 -3.3 34,132 1.3 1.3
2018 2,616,070 60,617 2.3 0.3 113,172 4.3 -3.5 34,776 1.3 1.9
2019 2,623,474 61,410 2.3 1.3 118,381 4.5 4.6 33,398 1.3 -4.0
2020* 2,514,973 60,361 2.4 -1.7 117,861 4.7 -0.4 32,690 1.3 -2.1
*Preliminary data. **Excluding import duties. ***Including agriculture, forestry & fishing
Source: GaStat.
59
Per Capita Share in 2020 against a rise of 3.5 percent in 2019.

Preliminary figures indicate that per capita Gross capital formation (including inventory
share of GDP (at current prices) in Saudi Arabia change) decreased by 19.0 percent to SAR
declined by 13.7 percent to SAR 74,984 in 2020 692.9 billion in 2020 from SAR 855.7 billion
versus SAR 86,902 in 2019 (Table 4.6). in 2019. On the contrary, gross consumption
of the government sector increased by 5.6
Expenditure on GDP in 2020 percent to SAR 749.1 billion in 2020, up from
Preliminary figures show that expenditure SAR 709.2 billion in 2019. Thus, the share of
on GDP at current prices decreased by 11.7 gross final consumption in expenditure on GDP
percent to SAR 2,625.4 billion in 2020 against an at current prices increased to 71.5 percent in
increase of 0.8 percent in 2019. This decrease 2020 from 62.8 percent in 2019. Net exports
was due to decreases in final consumption of goods and services registered a surplus of
of the private sector and gross fixed capital SAR 54.7 billion in 2020 compared to a surplus
formation. The final consumption of the private of SAR 250.9 billion in 2019, dropping by 78.2
sector fell by 2.5 percent to SAR 1,128.7 billion percent (Table 4.7 and Chart 4.3).
Table 4.5: GDP by Key Economic Sectors (at Constant Prices for 2010)
)Million SAR(
2019 2020*
2017 2018
Value Share Growth Value Share Growth
1. Agriculture, forestry & fishing 65,290 65,609 66,411 2.2 1.2 67,279 2.6 1.3
2. Mining & quarrying 655,761 882,613 826,706 28.0 -6.3 531,210 20.4 -35.7
3. Manufacturing industries 332,901 377,806 372,893 12.6 -1.3 340,403 13.1 -8.7
4. Electricity, gas & water 40,621 49,266 47,174 1.6 -4.2 45,641 1.8 -3.3
5. Construction & building 154,592 151,496 163,655 5.5 8.0 168,750 6.5 3.1
6. Wholesale & retail trade, restaurants &

274,970 280,159 298,009 10.1 6.4 284,579 10.9 -4.5
hotels
7. Transport, storage & telecommunication 165,173 171,662 182,071 6.2 6.1 172,304 6.6 -5.4
8. Finance, insurance, real estate & business
342,668 358,194 375,269 12.7 4.8 377,725 14.5 0.7
services
9. Government services' producers 491,077 553,843 576,953 19.5 4.2 576,089 22.1 -0.1
GDP** 2,558,820 2,930,101 2,952,403 100.0 0.8 2,603,428 100.0 -11.8
* Preliminary data. ** Excluding import duties. ***Including oil refining.
Source: GaStat.
Table 4.6: Per Capita GDP

2017 2018 2019 Change 2020* Change
GDP** (current prices) (million SAR) 2,582,198 2,949,457 2,973,626 0.8 2,625,442 -11.7
Population (million) 32.61 33.41 34.22 2.4 35.01 2.3
Per Capita GDP (SAR) 79177 88271 86902 -1.6 74984 -13.7
*Preliminary data. ** Including import duties.
Source: GaStat.
60
Chart 4.3: Expenditure on GDP (at Current Prices)
2000
1800
1600
1400
1200
Billion SAR
1000
!
800
600
400
200
0
2017 2018 2019 2020
Gross final consumption Gross capital formation Net exports
Table 4.7: Expenditure on GDP (at Current Prices)

)Million SAR(
2017 2018 2019 2020*
Value Share Change Value Share Change Value Share Change Value Share Change
Gross final
1,694,622 65.6 2.1 1,844,341 62.5 8.8 1,866,990 62.8 1.2 1,877,824 71.5 0.6
consumption
Government
630,978 24.4 1.0 726,101 24.6 15.1 709,171 23.8 -2.3 749,112 28.5 5.6
consumption
Private
1,063,644 41.2 2.7 1,118,241 37.9 5.1 1,157,819 38.9 3.5 1,128,712 43.0 -2.5
consumption
Gross capital
745,272 28.9 -0.4 710,139 24.1 -4.7 855,689 28.8 20.5 692,933 26.4 -19.0
formation **
Net exports
of goods & 142,303 5.5 1280.0 394,977 13.4 177.6 250,947 8.4 -36.5 54,685 2.1 -78.2
services ***
Expenditure
2,582,198 100.0 6.8 2,949,458 100.0 14.2 2,973,626 100.0 0.8 2,625,442 100.0 -11.7
on GDP
*Preliminary data. **Including inventory change.

***Net exports of goods & services = Total exports of goods & services - total imports of goods & services.
Source: GaStat.
61
5
EXTERNAL
SECTOR
Exports
According to GaStat data, the total value of Saudi
External Sector Arabia’s merchandise exports reached SAR 652.0

billion in 2020 compared to SAR 981.0 billion
in 2019, decreasing by 33.5 percent against a
decrease of 11.1 percent in the preceding year
According to data of the General Authority for
(Table 5.1).
Statistics (GaStat), the total value of Saudi Arabia’s
oil exports stood at SAR 447.6 billion in 2020,
Oil Exports
accounting for 68.7 percent of Saudi Arabia’s total
Saudi Arabia’s oil exports amounted to SAR
exports, compared to SAR 751.8 billion in 2019.
447.6 billion in 2020, dropping by 40.5 percent
The ratio of 2020 oil exports to GDP reached 17.0
as compared to a decline of 13.4 percent in the
percent. The total value of imports (CIF) amounted
preceding year. They constituted 68.7 percent of
to SAR 517.5 billion, constituting 19.7 percent
total exports (Table 5.1). This decline from 2019 was
of GDP. Estimates of the Saudi Arabia’s balance
attributed to the fall in oil prices in global markets,
of payments indicate a deficit of SAR 73.7 billion
with the average price of Arab Light crude standing
in the current account in 2020, constituting 2.8
at $41.91 per barrel in 2020 compared to $64.96
percent of GDP.
per barrel in 2019, according to OPEC data, and the
decrease of Saudi Arabia’s average production of
External Trade crude oil from 9.8 million barrels per day (bpd) in
External trade figures show that the total value
2019 to 9.2 million bpd in 2020.
of Saudi Arabia’s merchandise trade (exports +
imports) decreased by 25.1 percent to SAR 1,134.1
Data on oil exports by type indicate that the value
billion in 2020 compared to SAR 1,513.5 billion in
of crude oil exports dropped by 39.9 percent from
2019. The ratio of external merchandise trade to
SAR 625.9 billion in 2019 to SAR 376.4 billion in
GDP was 43.2 percent in 2020 compared to 50.9
2020, constituting 57.7 percent of total exports.
percent in the preceding year.
In addition, the value of refined products exports
Table 5.1: Saudi Arabia’s Commodity Exports
(Million SAR)
Share Change
2017 2018 2019 2020
2018 2019 2020 2020
Oil exports 638,402 868,442 751,828 447,599 78.67 76.64 68.66 -40.5
Crude oil 513,181 704,505 625,863 376,434 63.82 63.80 57.74 -39.9
Refined products 125,222 163,938 125,965 71,165 14.85 12.84 10.92 -43.5
Non-oil exports 193,479 235,458 229,184 204,352 21.33 23.36 31.34 -10.8
Petrochemicals 116,609 153,233 140,748 118,953 13.88 14.35 18.25 -15.5
Construction materials 14,424 19,557 16,289 15,225 1.77 1.66 2.34 -6.5
Agricultural, animal & food products 13,279 12,950 13,038 12,753 1.17 1.33 1.96 -2.2
Other goods* 49,167 49,719 59,109 57,421 4.50 6.03 8.81 -2.9
Total 831,881 1,103,901 981,013 651,951 100.00 100.00 100.00 -33.5

*Including re-exports.
Source: GaStat.
64
External Sector
decreased by 43.5 percent from SAR 126.0 billion to diversify the national income sources through
to SAR 71.2 billion, representing 10.9 percent of developing non-oil exports and promoting their
total exports. Chart 5.1 shows the developments in competitiveness in line with the objectives of Saudi
Saudi Arabia’s oil exports. Vision 2030.
Non-Oil Exports Since the launch of the program, the number

According to GaStat data, Saudi Arabia’s non-oil of financing transactions approved by SFD has
exports declined by 10.8 percent to SAR 204.4 reached 298 with a value of SAR 82.0 billion.
billion in 2020 versus a decrease of 2.7 percent in The number of export credit guarantee policies
the preceding year, representing a share of 31.3 approved by the program has amounted to 325
percent of total exports (Table 5.1). The value of with a total value of SAR 37.6 billion. As per the
petrochemical exports went down by 15.5 percent SFD’s national classification of economic activities,
to SAR 119.0 billion with a share of 18.3 percent of Saudi export finance and guarantee data show that
total exports. The value of construction materials the total value of export financing and guarantee
exports also fell by 6.5 percent to SAR 15.2 billion, transactions was SAR 4.1 billion in 2020 (Table 5.2).
constituting a share of 2.3 percent of the total.
The value of other commodities exports, including The SEP’s finance and guarantee activities in
re-exports, fell by 2.9 percent to SAR 57.4 billion, 2020 were as follows: SAR 2.7 billion offered to
representing a share of 8.8 percent of total exports. manufacturing, SAR 995.4 million to mining and
Moreover, the value of agricultural, animal and quarrying, SAR 429.4 million to financial and
food products exports decreased by 2.2 percent insurance activities, SAR 13.4 million to building
to SAR 12.8 billion with a share of 2.0 percent of and construction, and SAR 5.3 million to agriculture.
total exports. Chart 5.2 shows the values and
developments of non-oil exports over the period Imports
2016-2020. GaStat data show that the value of imports of goods
(CIF) decreased by 9.9 percent to SAR 517.5 billion
Development of Saudi Non-Oil Exports in 2020 from SAR 574.4 billion in 2019 (Table 5.3).
The Saudi Export Program (SEP) is one of the
key programs launched by the Saudi Fund for Detailed data on Saudi Arabia’s imports by main
Development (SFD) in 1999. The program offers component for 2020 (Chart 5.3) show that imports
credit facilities and guarantees to exporters. It aims of electric machinery, appliances and equipment
Chart 5.1: Saudi Oil Exports
1000
800
600
Billion SAR
400
200
0
2015 2016 2017 2018 2019 2020
Crude oil Refined products
65
ranked first with a share of 21.1 percent (SAR last with 2.4 percent (SAR 12.3 billion), falling by
109.1 billion) of total imports, deceasing by 9.3 32.4 percent from the preceding year.
percent from 2019. Imports of foodstuffs and
imports of other goods came second with a share Destination of Exports and Origin of
of 16.6 percent each (SAR 85.7 billion each) of total Imports
imports. Imports of foodstuffs increased by 5.3 The destination of exports and origin of imports are
percent, while imports of other goods decreased divided into four groups. The first group includes
by 7.5 percent from the preceding year. Imports of the top five non-Arab countries. The second
transport equipment came third with 16.0 percent group comprises the GCC member countries, the
(SAR 83.0 billion) of total imports, dropping by third contains Arab countries excluding the GCC
29.8 percent from 2019. Imports of chemical and countries, and the fourth includes other countries
related products ranked fourth with a share of 13.9 (Table 5.4).
percent (SAR 72.0 billion), rising by 0.2 percent
over the preceding year. Imports of ordinary metals Destination of Exports
and their products came fifth with a share of 9.6 Saudi Arabia’s exports to the top five non-Arab
percent (SAR 49.6 billion), increasing by 1.4 percent. countries decreased by 35.4 percent to SAR
Imports of textiles and clothing came sixth with a 327.9 billion in 2020, representing a share of 50.3
share of 3.9 percent (SAR 20.0 billion), decreasing percent of total exports. Exports to China ranked
by 11.9 percent. Imports of wood and jewelry came first with a share of 18.4 percent (SAR 120.0 billion)
Chart 5.2: Components of Saudi Non-Oil Exports
160
140
120
100
Billion SAR
80
60
40
20
0
2016 2017 2018 2019 2020
Petrochemicals Other commodities (including re-exports) Construction materials Agricultural, animal & food products
Table 5.2: Finance and Guarantee of Saudi Exports
(Million SAR)
2018 2019 2020*
Manufacturing 14,229 3,560 2,670

Building & construction -- 232 13
Agriculture -- 10 5
Mining & quarrying 632 917 995
Financial & insurance activities 2,529 761 429
Total 17,390 5,481 4,114
* Preliminary data.
Source: SFD.
66
External Sector
of total exports, decreasing by 33.2 percent from 7.1 percent of total exports. Furthermore, exports
2019. Exports to Japan came in second place with to other countries dropped by 36.8 percent to SAR
a share of 9.6 percent (SAR 62.3 billion), falling 205.3 billion with a share of 31.5 percent.
by 37.9 percent from the preceding year. Exports
to India followed in third place with a share of Origin of Imports
9.2 percent (SAR 60.2 billion), dropping by 40.2 Detailed data of total imports indicate that Saudi
percent. Exports to South Korea came fourth with Arabia’s imports from the top five non-Arab
a share of 8.3 percent (SAR 54.4 billion), falling by exporting countries decreased by 9.7 percent
30.4 percent. Exports to the United States ranked to SAR 229.9 billion in 2020, constituting a share
fifth with a share of 4.8 percent (SAR 31.0 billion) of 44.4 percent of Saudi Arabia’s total imports.
of total exports, declining by 36.7 percent from the Imports from China ranked first with a share of
preceding year. Chart 5.4A shows the destinations 19.6 percent (SAR 101.6 billion) of Saudi Arabia’s
of Saudi Arabia’s exports for 2020. total imports, decreasing by 3.8 percent from 2019.
Imports from the United States came next with a
Saudi Arabia’s exports to the GCC countries also share of 10.7 percent (SAR 55.1 billion), declining by
declined by 19.2 percent to SAR 72.1 billion in 2020, 22.4 percent from the preceding year. Imports from
accounting for 11.1 percent of Saudi Arabia’s total Germany ranked third with a share of 5.2 percent
exports. Exports to other Arab countries decreased (SAR 26.9 billion), decreasing by 2.8 percent.
by 20.9 percent to SAR 46.5 billion, accounting for Imports from India followed in fourth place with a
Chart 5.3: Saudi Arabia’s Imports (CIF) by Main Components
30
20
Percentage
10
2016 2017 2018 2019 2020
Electric machinery, appliances & equipment Foodstuffs Chemical & metal products Textiles & clothing
Ordinary metals & their products Wood & jewelry Transport equipment Other goods
Table 5.3: Saudi Arabia’s Imports (CIF) by Main Component
Million SAR Share Change

2018 2019 2020 2018 2019 2020 2020
Electric machinery, appliances & equipment 111,167 120,291 109,094 21.6 20.9 21.1 -9.3
Foodstuffs 80,249 81,369 85,716 15.6 14.2 16.6 5.3

Chemical & related products 69,202 71,876 72,017 13.5 12.5 13.9 0.2
Textiles & clothing 18,115 22,732 20,018 3.5 4.0 3.9 -11.9
Metals & their products 43,988 48,896 49,600 8.6 8.5 9.6 1.4
Wood & jewelry 19,997 18,258 12,342 3.9 3.2 2.4 -32.4
Transport equipment 84,652 118,264 83,009 16.5 20.6 16.0 -29.8
Other goods 86,623 92,675 85,695 16.9 16.1 16.6 -7.5
Total 513,993 574,361 517,491 100.0 100.0 100.0 -9.9
Source: GaStat.
67
share of 4.7 percent (SAR 24.5 billion), decreasing 2020 against a deficit of SAR 4.5 billion in 2019.
by 1.3 percent. Imports from Japan came fifth with Imports from GCC countries decreased by 11.4
a share of 4.2 percent (SAR 21.8 billion), decreasing percent to SAR 49.0 billion (9.5 percent of total
by 14.2 percent from 2019. imports) in 2020 compared to SAR 55.4 billion in
2019. Saudi exports to the GCC countries also
Saudi Arabia’s imports from GCC countries declined by 1.0 percent to SAR 50.3 billion in 2020,
recorded a fall of 11.2 percent to SAR 49.2 billion in accounting for 24.6 percent of total non-oil exports
2020, accounting for 9.5 percent of Saudi Arabia’s (including re-exports).
total imports. In addition, imports from other Arab
countries dropped by 12.0 percent to SAR 18.8 Detailed data of 2020 indicate that Saudi Arabia’s
billion, constituting 3.6 percent of total imports. non-oil commodity balance with Kuwait and
Moreover, imports from other countries declined Bahrain recorded surpluses of SAR 4.5 billion and
by 9.7 percent to SAR 219.6 billion with a share SAR 0.04 billion, respectively, while it recorded with
of 42.4 percent. Chart 5.4B shows Saudi Arabia’s the UAE and Oman deficits of SAR 0.6 billion and
imports by origin in 2020. SAR 2.6 billion, respectively.
Non-Oil Trade with GCC Countries Data on Saudi Arabia’s non-oil exports to GCC
Saudi Arabia’s net non-oil trade with the GCC countries in 2020 show that the UAE remained in
countries recorded a surplus of SAR 1.2 billion in the first place with SAR 33.7 billion or 67.0 percent
Table 5.4: Destination of Exports and Origin of Imports*
Share Change
2019 2020
2019 2020 2020
Exports
China 179,669 120,016 18.3 18.4 -33.2
Japan 100,365 62,307 10.2 9.6 -37.9
India 100,703 60,208 10.3 9.2 -40.2
South Korea 78,155 54,379 8.0 8.3 -30.4
USA 49,024 31,024 5.0 4.8 -36.7
Total of the Five Countries 507,916 327,934 51.8 50.3 -35.4
GCC Countries 89,283 72,139 9.1 11.1 -19.2
Other Arab Countries 58,878 46,547 6.0 7.1 -20.9
Other Countries 324,935 205,332 33.1 31.5 -36.8
Total Exports 981,012 651,952 100.0 100.0 -33.5
Imports
China 105,571 101,562 18.4 19.6 -3.8
USA 71,024 55,145 12.4 10.7 -22.4
Germany 27,649 26,869 4.8 5.2 -2.8
India 24,850 24,530 4.3 4.7 -1.3
Japan 25,367 21,767 4.4 4.2 -14.2
Total of the Five Countries 254,461 229,873 44.3 44.4 -9.7
GCC Countries 55,365 49,171 9.6 9.5 -11.2
Other Arab Countries 21,378 18,803 3.7 3.6 -12.0
Other Countries 243,157 219,644 42.3 42.4 -9.7
Total Imports 574,361 517,491 100.0 100.0 -9.9
* Including re-exports.
Source: GaStat.
68
External Sector
of the total. Bahrain came next with SAR 7.0 Detailed data on Saudi trade with top Arab trading
billion (13.9 percent), Kuwait with SAR 6.0 billion partners in 2020 show that Saudi Arabia recorded
(12.0 percent), and Oman with SAR 3.6 billion (7.2 surpluses of SAR 3.9 billion in trade with Yemen,
percent). SAR 2.6 billion with Iraq, SAR 1.6 billion with Sudan,
SAR 743 million with Morocco, and SAR 516 million
With respect to Saudi Arabia’s non-oil imports with Jordan. However, Saudi trade with Egypt, Syria
from GCC countries in 2020, the UAE continued and Lebanon recorded deficits of SAR 3.4 billion,
to occupy the first position as the largest GCC SAR 766 million, and SAR 402 million, respectively.
exporter to Saudi Arabia, with exports amounting
to SAR 34.3 billion (69.9 percent of the total). As for Saudi non-oil exports to top Arab trading
Bahrain came second with SAR 7.0 billion (13.9 partners in 2020, Egypt ranked first with SAR 6.7
percent), followed by Oman with SAR 6.3 billion billion (24.9 percent of the total), followed by
(12.7 percent) and then Kuwait with SAR 1.7 billion Jordan in second place with SAR 4.7 billion (17.4
(3.4 percent) (Table 5.5). percent) and then Yemen in third place with SAR
4.6 billion. Iraq and Sudan occupied the fourth and
Non-Oil Trade with Top Arab Trading fifth positions, with exports amounting to SAR 2.7
Partners billion and SAR 2.5 billion, respectively.
Saudi Arabia’s non-oil trade with Arab countries
(excluding GCC countries) registered a surplus of With regard to Saudi Arabia’s non-oil imports from
SAR 8.2 billion in 2020 against a surplus of SAR its top Arab trading partners in 2020, Egypt took
7.0 billion in 2019. Imports from Arab countries the lead with SAR 10.1 billion (53.9 percent of the
dropped by 12.0 percent from SAR 21.4 billion in total). Jordan came next with SAR 4.2 billion (22.2
2019 to SAR 18.8 billion in 2020, accounting for 3.6 percent), followed by Lebanon in third place with
percent of total imports. Exports to Arab countries SAR 948 million (5.0 percent). Sudan and Syria
also went down by 4.9 percent to SAR 27.0 billion, came in fourth and fifth places with SAR 912 million
constituting 13.2 percent of total non-oil exports (4.9 percent) and SAR 768 million (4.1 percent),
(including re-exports). respectively (Table 5.6).
Chart 5.4A: Saudi Arabia’s Exports by Destination Chart 5.4B: Saudi Arabia’s Imports by Origin
(Percentage) (Percentage)
4.2
4.8 4.7 42.4
31.5
8.3
5.2
9.2 10.7
9.6 18.4
19.6
Other countries China USA Other countries China USA
South Korea India Japan Germany India Japan
69
Private Sector Exports Financed by Arabia’s imports was 25.0 percent in 2020 against
Commercial Banks 23.5 percent in 2019.
Private sector exports financed by commercial
banks (settled letters of credit) fell by 7.4 percent This decline in imports was attributable to
to SAR 34.1 billion in 2020 compared to SAR 36.9 decreases in the financing of imports of other
billion in 2019. Their ratio to total non-oil exports goods of 6.8 percent to SAR 62.5 billion;
(including re-exports) rose to 16.9 percent in 2020 construction materials of 17.7 percent to SAR
from 16.1 percent in 2019. 12.3 billion; machinery of 21.2 percent to SAR
4.8 billion; appliances of 18.6 percent to SAR 2.8
Data on private sector exports financed by billion; textiles and clothing of 48.3 percent to SAR
commercial banks (settled letters of credit) in 2020 1.0 billion; grain of 16.3 percent to SAR 4.2 billion;
show that exports of other industrial products livestock and meat of 22.7 percent to SAR 1.9
decreased by 5.6 percent to SAR 32.2 billion, ranking billion; sugar, tea and coffee beans of 30.0 percent
first with a share of 94.2 percent of total exports as to SAR 529 million; and other foodstuffs of 13.3
compared to 2019. Chemical and plastic products percent to SAR 6.8 billion. On the other hand,
came second with SAR 1.8 billion, recording a financing of motor vehicle imports and financing
decrease of 32.7 percent and representing a share of fruit and vegetable imports increased by 2.8
of 5.2 percent of the total. Agricultural and animal percent (to SAR 26.2 billion) and 29.4 percent (to
products came next with a value of SAR 228 million, SAR 343 million), respectively.
increasing by 35.9 percent and accounting for 0.7
percent of the total. As for their share, financing of imports of other
goods ranked first with a share of 50.7 percent of
Private Sector Imports Financed by total imports, followed by that of motor vehicles
Commercial Banks in second place with 21.2 percent. Financing of
Private sector imports financed by commercial imports of construction materials came next with
banks (settled letters of credit and bills under 10.0 percent of total imports. Financing of imports
collection) decreased by 8.8 percent to SAR 123.2 of other foodstuffs came fourth with a share of
billion in 2020 compared to SAR 135.1 billion 5.5 percent, followed by that of machinery in fifth
in 2019. Their share of the total value of Saudi place with 3.9 percent (Table 5.7).
Table 5.5: Saudi Non-Oil Trade with GCC Countries*
)Million SAR(
Share
2018 2019 2020 Change 2020
2020
Country
Imports Exports Imports Exports Imports Exports
Difference Difference Difference Imports Exports Imports Exports
from to from to from to
UAE 43,441 29,557 -13,884 39,806 33,043 -6,763 34,287 33,714 -573 -13.9 2.0 69.9 67.0
Bahrain 6,099 6,170 71 6,426 7,164 738 6,950 6,991 41 8.2 -2.4 14.2 13.9
Qatar 0 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0
Oman 5,818 3,815 -2,003 7,167 3,627 -3,540 6,253 3,606 -2,647 -12.8 -0.6 12.7 7.2
Kuwait 1,567 7,833 6,266 1,966 6,988 5,022 1,555 6,025 4,470 -20.9 -13.8 3.2 12.0
Total 56,925 47,375 -9,550 55,365 50,822 -4,543 49,045 50,336 1,291 -11.4 -1.0 100.0 100.0
* Including re-exports
Source: GaStat.
70
External Sector
Exports Through Ports
According to data issued by the Saudi Ports Imports Through Ports
Authority (Mawani), the volume of exports According to data issued by Mawani, the volume of
(excluding crude oil exports) handled at Saudi ports imports handled at Saudi ports fell by 6.9 percent
increased by 2.7 percent to 217.4 million tons in to 101.1 million tons in 2020. This decline was
2020 from 211.6 million tons in 2019. attributed to a decrease of 31.2 percent in imports
This rise was attributed to increases in the exports through industrial ports to 28.9 million tons.
of transshipment goods of 16.5 percent to 15.4 Nevertheless, imports handled at commercial ports
million tons, other goods of 10.2 percent to 22.0 rose by 8.4 percent to 72.2 million tons as a result of
million tons, petrochemicals of 7.0 percent to 35.5 increases of 9.5 percent in the imports of foodstuffs
million tons, and refined oil products and gas of 0.02 to 26.4 million tons, 20.6 percent in imports of
percent to 125.4 million tons. However, exports of construction materials to 13.3 million tons, and
construction materials and steel decreased by 3.9 4.2 percent in imports of general merchandise to
percent to 19.0 million tons. 30.8 million tons. Imports of equipment, however,
dropped by 11.8 percent to 1.7 million tons.
As for their share in the total volume of exports
handled at ports, refined oil products and gas ranked As for their share, general merchandise ranked
first with a share of 57.7 percent. Petrochemicals first with a share of 30.4 percent of total imports
came second with a share of 16.3 percent, followed through ports, followed by foodstuffs with 26.1
by other exports with 10.1 percent. Construction percent, construction materials with 13.2 percent,
materials and steel exports came fourth with a and equipment with 1.7 percent.
share of 8.8 percent. Exports of transshipment
goods came in fifth place with 7.1 percent, followed On the other hand, motor vehicles imported
by exports of agricultural products with 0.1 percent. through Saudi ports during 2020 decreased by 4.2
Table 5.6: Non-oil Trade with Top Arab Trading Partners* (Excluding GCC Countries)
)Million SAR(
Share
2018 2019 2020 Change 2020
2020
Country
Imports Exports Imports Exports Imports Exports
Difference Difference Difference Imports Exports Imports Exports
from to from to from to
Egypt 5,635 7,522 1,887 10,297 7,032 -3,265 10,129 6,739 -3,390 -1.6 -4.2 53.9 24.9
Jordan 3,019 5,872 2,853 4,683 5,399 716 4,182 4,698 516 -10.7 -13.0 22.2 17.4
Yemen 573 3,679 3,106 591 4,160 3,569 673 4,562 3,889 13.9 9.7 3.6 16.9
Lebanon 1,082 1,909 827 1,185 1,167 -18 948 546 -402 -20.0 -53.2 5.0 2.0
Morocco 750 1,628 878 600 1,522 922 601 1,344 743 0.2 -11.7 3.2 5.0
Sudan 2,128 2,445 317 2,138 2,218 80 912 2,503 1,591 -57.3 12.8 4.9 9.3
Iraq 44 2,463 2,419 26 2,735 2,709 42 2,653 2,611 61.5 -3.0 0.2 9.8
Syria 400 5 -395 705 3 -702 768 2 -766 8.9 -41.1 4.1 0.0
Other
Arab 837 4,579 3,742 1,153 4,171 3,018 548 3,981 3,433 -52.5 -4.6 2.9 14.7
countries
Total 14,468 30,102 15,634 21,378 28,407 7,029 18,803 27,028 8,225 -12.0 -4.9 100.0 100.0
* Including re-exports
Source: GaStat.
71
percent to 581.1 thousand from 606.3 thousand billion (2.4 million tons), representing a share of
in 2019. In addition, imports of livestock through 20.9 percent and decreasing by 17.8 percent from
Saudi ports reached 2.9 million, declining by 50.9 the preceding year.
percent from the number registered in 2019. The
decrease in imports of livestock may be attributed With regard to Saudi Arabia’s exports by use of
to the measures taken by Saudi Arabia in 2020 in goods in 2020, intermediate goods ranked first
response to Covid-19 pandemic, the significant with SAR 597.2 billion (458.7 million tons) and a
decrease in the number of pilgrims resulting in share of 91.6 percent of total exports, dropping by
less need for animals for sacrifice (Hady), and the 34.9 percent from 2019. Consumer goods ranked
suspension of social events (Table 5.8). second with SAR 34.6 billion (11.2 million tons) and
a share of 5.3 percent of total exports, falling by
Imports and Exports by Use of Goods 20.7 percent from the preceding year. Capital goods
Detailed data on Saudi Arabia’s imports by use of followed in third place with SAR 20.2 billion (0.6
goods for 2020 show that imports of consumer million tons), constituting a share of 3.1 percent of
goods amounted to SAR 210.0 billion (13.2 million total exports and decreasing by 0.3 percent from
tons), ranking first with a share of 40.6 percent the preceding year (Table 5.9).
of total imports and declining by 10.6 percent
from 2019. Imports of intermediate goods came Imports and Exports by Type of Goods
second with SAR 199.4 billion (70.5 million tons), Data on Saudi Arabia’s imports by type of goods
constituting a share of 38.5 percent of total imports (the stage of processing) for 2020 indicate that
and dropping by 4.1 percent from the preceding imports of finished goods amounted to SAR 371.1
year. Capital goods came third with SAR 108.1 billion (30.6 million tons), ranking first with a share
Table 5.7: Private Sector Exports and Imports Financed by Commercial Banks
)Million SAR(
Share
2019 2020 Change 2020
2019 2020
Exports* 36,861 34,142 100.00 100.00 -7.4
Agricultural & animal products 168 228 0.46 0.67 35.9
Chemical & plastic products 2,617 1,760 7.10 5.16 -32.7
Other industrial products 34,076 32,153 92.45 94.17 -5.6
Imports** 135,070 123,223 100.00 100.00 -8.8

Grain 5,014 4,196 3.71 3.41 -16.3
Fruit & vegetables 265 343 0.20 0.28 29.4
Sugar, tea & coffee beans 757 529 0.56 0.43 -30.0
Livestock & meat 2,436 1,883 1.80 1.53 -22.7
Foodstuffs 7,886 6,833 5.84 5.55 -13.3
Textiles & clothing 1,878 971 1.39 0.79 -48.3
Construction materials 14,930 12,286 11.05 9.97 -17.7
Motor vehicles 25,443 26,157 18.84 21.23 2.8
Machinery 6,028 4,751 4.46 3.86 -21.2
Appliances 3,408 2,775 2.52 2.25 -18.6
Other goods 67,026 62,499 49.62 50.72 -6.8
*Settled letters of credit.
**Settled letters of credit & bills under collection.
72
External Sector
of 71.7 percent of total imports and decreasing With regard to Saudi Arabia’s exports by type
by 13.2 percent from 2019. Semi-finished goods of goods in 2020, exports of raw material goods
came second with SAR 124.2 billion (36.1 million ranked first with SAR 387.9 billion (342.4 million
tons), constituting 24.0 percent of total imports tons) and a share of 59.5 percent of total exports,
and declining by 2.6 percent from the preceding declining by 39.3 percent from 2019. Exports
year. Raw material goods came third with SAR 22.2 of semi-finished goods ranked second with SAR
billion (19.4 million tons), representing a share of 148.5 billion (69.5 million tons) and a share of 22.8
4.3 percent of total imports and increasing by 13.3 percent of total exports, dropping by 11.1 percent
percent from 2019.
Table 5.8: Exports and Imports Through Ports
)Million tons(
Share
2019 2020* Change 2020
2019 2020
Exports 211.63 217.41 100.00 100.00 2.7
Petrochemicals 33.20 35.52 15.69 16.34 7.0
Refined oil products & gas 125.37 125.40 59.24 57.68 0.0
Construction materials & steel 19.83 19.05 9.37 8.76 -3.9
Transshipment goods 13.18 15.36 6.23 7.07 16.5
Agricultural products 0.14 0.14 0.06 0.06 0.4
Other goods 19.91 21.95 9.41 10.10 10.2
Imports 108.63 101.10 100.00 100.00 -6.9

Through commercial ports 66.60 72.19 61.31 71.40 8.4
Foodstuffs 24.08 26.37 22.17 26.08 9.5
Construction materials 11.04 13.31 10.16 13.17 20.6
Equipment 1.96 1.73 1.81 1.71 -11.8
General merchandise 29.53 30.77 27.18 30.44 4.2
Through industrial ports 42.02 28.91 38.69 28.60 -31.2
Livestock** 6.00 2.95 -- -- -50.9
Motor vehicles*** 0.61 0.58 -- -- -4.2
*Preliminary data.
**Livestock in ton are included in foodstuffs.
***Motor vehicles in ton are included in general merchandise.
Source: Saudi Ports Authority.
Table 5.9: Imports and Exports by Use of Goods
Weight (thousand ton)/value (million SAR)

2018 2019 2020 Change
Goods Share 2020
Weight Value Weight Value Weight Value 2020
Consumer 11,543 201,257 13,268 234,947 13,196 209,994 -10.6 40.6

Imports Intermediate 61,641 206,122 61,599 207,866 70,533 199,420 -4.1 38.5
Capital 2,055 106,614 2,645 131,548 2,409 108,077 -17.8 20.9
Consumer 11,258 49,610 9,420 43,563 11,245 34,559 -20.7 5.3
Exports Intermediate 497,955 1,041,058 482,208 917,160 458,679 597,163 -34.9 91.6
Capital 585 13,232 634 20,290 606 20,231 -0.3 3.1
Source: GaStat.
73
from the preceding year. Finished goods came third 2. Services

with SAR 115.6 billion (58.6 million tons) and a The deficit in services account dropped by 19.8
share of 17.7 percent, decreasing by 33.9 percent percent to SAR 163.6 billion in 2020 from a deficit
from the preceding year (Table 5.10). of SAR 204.1 billion in 2019. This decline was mainly
attributed to a decrease of 33.7 percent in the deficit
Balance of Payments in net government goods and services (not listed
I. Current Account elsewhere) to SAR 56.5 billion from SAR 85.2 billion
Preliminary estimates of the Saudi Arabia’s balance in 2019, even though the SAR 4.8 billion surplus in
of payments for 2020 indicate that the current net travel in the preceding year turned into a deficit
account recorded a deficit of SAR 73.7 billion, of SAR 16.9 billion in 2020. However, the SAR 527
compared to a surplus of SAR 143.4 billion in 2019. million deficit in net telecommunication in 2019
The ratio of the current account deficit to GDP stood turned into a surplus of SAR 88 million in 2020. The
at 2.8 percent in 2020. This deficit was attributed to deficit in net financial services decreased by 91.3
a decrease of 93.6 percent in the surplus of goods percent to SAR 411 million in 2020 from a deficit
and services and an increase of 7.7 percent in the of SAR 4.7 billion in 2019. In addition, the deficit
deficit of net secondary income, which offset a 95.4 in net other business services declined by 54.6
percent rise in the surplus of net primary income percent to SAR 16.8 billion from SAR 37.1 billion in
(Table 5.11). Chart 5.5 illustrates the developments the preceding year. The deficit in net construction
in the current account balance and its major items services also decreased by 8.5 percent to SAR 24.2
during the period 2017-2020. billion in 2020 from SAR 26.5 billion in 2019. The
deficit in net insurance and pensions dropped by
A. Goods and Services 12.4 percent to SAR 5.6 billion in 2020 from SAR 6.4
1. Goods billion in the preceding year. Moreover, the deficit
The surplus of goods account went down by 60.5 in net services payments for transportation fell
percent to SAR 179.8 billion in 2020 compared to by 10.8 percent to SAR 43.3 billion from SAR 48.5
a surplus of SAR 455.0 billion in 2019. This decline billion in the preceding year.
was attributed to a decrease of 33.5 percent in
total exports (including oil and other exports) to B. Primary Income
SAR 652.0 billion against SAR 981.1 billion in 2019. According to the estimates of the balance of
Imports (FOB) also declined by 10.2 percent to SAR payments, the surplus in net primary income
472.2 billion in 2020 from SAR 526.1 billion in 2019. increased by 95.4 percent to SAR 57.9 billion
Table 5.10: Imports and Exports by Type of Goods
Weight (thousand ton)/value (million SAR)

2018 2019 2020 Change
Goods Share 2020
Weight Value Weight Value Weight Value 2020
Raw 26,661 26,376 15,299 19,603 19,426 22,211 13.3 4.3

Imports Semi-finished 25,868 123,648 35,094 127,428 36,109 124,171 -2.6 24.0
Finished 22,711 363,968 27,119 427,330 30,603 371,109 -13.2 71.7
Raw 371,803 722,108 357,130 639,256 342,440 387,861 -39.3 59.5
Exports Semi-finished 63,030 183,069 67,896 167,011 69,502 148,533 -11.1 22.8
Finished 74,965 198,724 67,236 174,745 58,589 115,558 -33.9 17.7
Source: GaStat.
74
External Sector
Chart 5.5: Current Account Balance
300
250
200
150
100
Billion SAR
50
0
-50
-100
-150
-200
2017 2018 2019 2020
Current account balance Goods & services Primary income Secondary income
Table 5.11: Balance of Payments
(Million SAR)
2017 2018* 2019* 2020** Change 2020
I. Current account balance 39,241 269,894 143,362 -73,676 --
A. Goods & services 142,566 394,977 250,947 16,159 -93.56
1. Goods 369,229 632,811 455,010 179,791 -60.49
Exports 831,981 1,103,952 981,064 651,990 -33.54
Imports 462,752 471,141 526,054 472,199 -10.24
2. Services -226,663 -237,834 -204,064 -163,632 -19.81
Credit 67,994 76,985 90,910 38,429 -57.73
Debit 294,656 314,819 294,974 202,062 -31.50
B. Primary income 40,117 28,916 29,623 57,876 95.37
Credit 70,916 72,993 77,328 87,779 13.51
Debit 30,799 44,078 47,705 29,903 -37.32
C. Secondary income -143,442 -153,998 -137,208 -147,710 7.65
Credit 0 0 0 0 0.00
Debit 143,442 153,998 137,208 147,710 7.65
II. Capital account -6,931 -8,733 -6,499 -4,789 -26.31
III. Financial account 27,985 258,025 135,612 -80,891 --
1. Direct investment 21,978 56,270 33,692 -2,370 --
Net acquisition of financial assets 27,298 72,196 50,801 18,203 -64.17
Net incurrence of liabilities 5,321 15,927 17,110 20,573 20.24
2. Portfolio investments -9,521 45,157 43,196 77,149 --
Net acquisition of financial assets 72,010 106,932 129,637 188,811 45.65
Net incurrence of liabilities 81,531 61,775 172,833 111,662 -35.39
3. Other investments 163,180 155,977 133,915 16,532 -87.66
Net acquisition of financial assets 179,107 199,904 208,741 39,814 -80.93
Net incurrence of liabilities 15,927 43,927 74,826 23,283 -68.88
4. Reserve assets -147,652 621 11,202 -172,202 --
Errors & omissions -4,324 -3,136 -1,251 -2,426 93.97

*Preliminary data.
**Estimates.
75
in 2020 from SAR 29.6 billion in 2019. This rise III. Financial Account
was attributable to an increase in the surplus of The net financial account registered an inflow
portfolio investment income to SAR 43.6 billion of SAR 80.9 billion in 2020 against an outflow of
from SAR 10.8 billion in 2019, which offset a deficit SAR 135.6 billion in 2019. This was attributed to a
of SAR 5.3 billion in net direct investment income decrease of SAR 2.4 billion in net direct investment,
in 2020 compared to a surplus of SAR 4.2 billion an increase of SAR 77.1 billion in net portfolio
in 2019. The SAR 2.2 billion deficit in net workers’ investments, an increase of SAR 16.5 billion in
compensations in 2019, however, turned into a net other investments, and a decline of SAR 172.2
surplus of SAR 167 million in 2020. Net other billion in reserve assets in 2020.
investment income rose to SAR 19.4 billion in 2020
from SAR 16.8 billion in the preceding year. International Investment Position (IIP)
Net acquisition of foreign assets decreased by
C. Secondary Income 10.3 percent to SAR 2.3 trillion in 2020 versus
The deficit in the secondary income account SAR 2.5 trillion in 2019 (Table 5.13). This change
grew by 7.7 percent to SAR 147.7 billion in 2020 was attributed to developments in the following
from SAR 137.2 billion in 2019. This increase was components:
attributed to a rise of 13.4 percent in expatriate
remittances to SAR 128.8 billion in 2020. However, Direct Investment
government transfers fell by 20.2 percent to SAR Net direct investment abroad rose by 3.9 percent
18.0 billion against SAR 22.6 billion in 2019. Table to SAR 482.8 billion in 2020. Net direct investment
5.12 illustrates the developments in expatriate in Saudi Arabia also increased by 2.3 percent to SAR
remittances in Saudi Arabia and their ratio to 907.0 billion as compared to 2019.
private sector GDP since 2011.
Portfolio Investments
II. Capital Account Net portfolio investments abroad increased by
The net capital account registered an outflow of 16.5 percent to SAR 1.24 trillion in 2020. Net
SAR 4.8 billion in 2020 against an outflow of SAR portfolio investments in Saudi Arabia also went up
6.5 billion in 2019.
Table 5.12: Remittances of Expatriates in Saudi Arabia
(Million SAR)
Ratio of remittances to
Year Value Change Private Sector GDP* private sector GDP
Private sector GDP*
2011 103,485 5.4 852,275 12.1
2012 107,335 3.7 948,366 11.3
2013 127,768 19.0 1,050,987 12.2
2014 134,995 5.7 1,149,636 11.7
2015 141,785 5.0 1,213,542 11.7
2016 138,745 -2.1 1,227,534 11.3
2017 132,518 -4.5 1,247,459 10.6
2018** 123,637 -6.7 1,300,856 9.5
2019** 113,573 -8.1 1,354,322 8.4
2020*** 128,768 13.4 1,328,548 9.7
* At current prices.
**Preliminary data.
***Estimates.
Source: Balance of payments data issued by SAMA, and the private sector GDP data issued by GaStat.
76
External Sector
by 20.4 percent to SAR 640.3 billion as compared to associations and organizations amounted to
to 2019. SAR 25.2 billion or 17.6 percent of the total. In
addition, aid provided through multilateral aid
Other Investments programs during the same period amounted to
Net other investments abroad fell by 5.6 percent SAR 90 million or 0.1 percent of the total. Saudi
to SAR 896.7 billion in 2020. However, net other aid and loans provided through bilateral channels
investments in Saudi Arabia increased by 23.8 and multilateral associations, organizations and
percent to SAR 513.7 billion as compared to 2019. institutions in 2020 reached SAR 2.1 billion (11.1
percent of the total), decreasing by 12.5 percent
Reserve Assets from the preceding year. Aid and loans extended in
Reserve assets decreased by 9.2 percent to SAR 2020 constituted the bulk of the total, amounting
1,701.2 billion in 2020 as compared to 2019. to SAR 17.1 billion (88.9 percent) and decreasing by
51.4 percent from 2019.
Foreign Debt
Saudi Arabia’s total foreign debt (governmental and Exchange Rate Trends
non-governmental) was SAR 894.5 billion in 2020, SAMA continued to maintain the official exchange
compared to SAR 696.5 billion in 2019. The ratio of rate of the Saudi riyal against the U.S. dollar at SAR
government foreign debt to total foreign debt was 3.75 per one U.S. dollar during 2020. The nominal
33.9 percent in 2020. effective exchange rate (NEER) index increased by
0.66 points from 118.09 points at the end of 2019
Saudi Developmental Aid and Loans to 118.75 points at the end of 2020. Likewise, the
Abroad real effective exchange rate (REER) index increased
Saudi aid, loans and contributions abroad reached by 2.86 points from 112.14 points at the end of
SAR 143.1 billion during the period 2016-2020 2019 to 115.00 points at the end of 2020
(Table 5.14). Aid and loans constituted 82.3 percent
(SAR 117.8 billion) of the total. Total contributions
Table 5.13: International Investment Position
(Million SAR)
2018* 2019* 2020** Change 2020
I. Assets 3,988,910 4,349,426 4,317,878 -0.7
1. Direct investment abroad 392,299 464,641 482,845 3.9
2. Portfolio investments 928,459 1,061,798 1,237,141 16.5
3. Other investments 805,943 949,576 896,683 -5.6
4. Reserve assets 1,862,209 1,873,411 1,701,209 -9.2
II. Liabilities 1,522,813 1,833,085 2,060,929 12.4
1. Direct investment in Saudi Arabia 869,301 886,410 906,983 2.3
2. Portfolio investments 317,395 531,818 640,266 20.4
3. Other investments 336,118 414,856 513,680 23.8
III. Net international investment position 2,466,097 2,516,341 2,256,949 -10.3

*Preliminary data.
**Estimates.
77
Table 5.14: Saudi Arabia’s Aid and Contributions Abroad (2016-2020)
(Million SAR)
Contributions to associations &

Year Aid & loans Multilateral aid Total
organizations
2016 11,494 18,999 43 30,536
2017 16,542 975 26 17,543
2018 37,500 680 21 38,201
2019 35,157 2,448 -- 37,605
2020 17,088 2,142 -- 19,230
Total 117,781 25,245 90 143,116

Source: MoF.
78
6
PUBLIC
FINANCE
billion, 1.9 percent higher than the projections for
Public Finance the previous fiscal year. The 2021 budget deficit is
estimated at SAR 140.9 billion, decreasing by 24.6
percent from the preceding fiscal year’s projections
In its session held on Tuesday, December 15, (Table 6.1).
2020 (Rabi’ II 30, 1442H), the Council of Ministers
approved the state budget for fiscal year 2021 Main Features of the State Budget for
(1442/1443H). The budget came in line with the FY 2021
extraordinary economic conditions that Saudi Saudi Arabia seeks to raise the efficiency of
Arabia experienced as a result of the COVID-19 spending to create an environment conducive to
pandemic. It gave priority to protecting the health economic growth. It also supports priority sectors
of citizens and residents, supporting the private by allocating the necessary financial resources to
sector and mitigating the financial implications of them, with a view to achieving comprehensive
the pandemic. development and the objectives of public finance.
The following are the state budget’s allocations for
This budget is aimed at stimulating economic spending on the main sectors for fiscal year 2021
growth, empowering the private sector, continuing (Table 6.2 and Chart 6.1).
efforts to reduce the effects of the pandemic on
economic activities, increasing employment Education
opportunities for citizens, enhancing social Education sector was allocated SAR 185.7 billion
protection, developing services, and implementing or 18.8 percent of total budgetary expenditures,
housing and development programs and projects. declining by 3.9 percent from the 2020 budgeted
It also focuses on achieving the objectives of the amount.
Saudi Vision 2030. It took into account increasing
spending efficiency, combating corruption, Military
and implementing its projects and programs Military sector was allocated SAR 175.1 billion
effectively to continue promoting prosperity and or 17.7 percent of total budgetary expenditures,
development. decreasing by 3.8 percent from the 2020 budgeted
amount.
Total expenditures for fiscal year 2021 are projected
to be SAR 990.0 billion, 2.9 percent lower than the Health and Social Development
estimated budget for the preceding fiscal year. Health services and social development sectors
Total 2021 revenues are estimated at SAR 849.1 were allocated SAR 174.7 billion or 17.6 percent
Table 6.1: Budget Projections

(Billion SAR)
FY FY
2020 2021 change

(1441/1442H) (1442/1443H)
Total revenues 833.1 849.1 1.9

Total expenditures 1020.0 990.0 -2.9
Surplus/deficit -186.9 -140.9 -24.6

Source: MoF.
80
Public Finance
of total budgetary expenditures, increasing by 4.6 Economic resources sector was allocated SAR
percent over the 2020 budgeted amount. 72.4 billion or 7.3 percent of total budgetary
expenditures, decreasing by 25.9 percent from the
Security and Regional Administration 2020 budgeted amount.
Security and regional administration sector was
allocated SAR 100.8 billion or 10.2 percent of total Public administration sector was allocated SAR
budgetary expenditures, declining by 1.5 percent 33.6 billion or 3.4 percent of total budgetary
from the 2020 budgeted amount. expenditures, increasing by 19.8 percent over the
2020 budgeted amount.
Municipal Services
Municipal services, including the Ministry of Actual Revenues and Expenditures for
Municipal and Rural Affairs and municipalities, FY 2020
were allocated SAR 50.8 billion or 5.1 percent
of the budgetary expenditures, declining by 5.2 Data for fiscal year 2020 (1441/1442H) indicate
percent from the 2020 budgeted amount. that total actual revenues reached SAR 781.8
billion, recording a decrease of 15.6 percent
Infrastructure and Transportation compared to an increase of 2.3 percent in fiscal
Infrastructure and transportation sector was year 2019. The ratio of actual revenues to nominal
allocated SAR 45.8 billion or 4.6 percent of total GDP was 29.8 percent, declining by 6.1 percent
budgetary expenditures, decreasing by 17.7 from the budgeted figure. Actual 2020 oil revenues
percent from the 2020 budgeted amount. of SAR 413.1 billion were 19.5 percent lower than
the budgeted amount. In contrast, actual non-oil
Other Sectors revenues for fiscal year 2020 amounted to SAR
Public programs (general items) were allocated 368.8 billion, recording an increase of 15.2 percent
SAR 151.1 billion or 15.3 percent of total budgetary compared to the budgeted estimates. This rise may
expenditures, increasing by 7.4 percent over the be attributed to several factors, the most important
2020 budgeted amount. of which is the decision to raise the value-added tax
Table 6.2: Allocation of State Budget by Key Sector

(Million SAR)
2020 (1441/1442H) 2021 (1442/1443H)
Amount Share Change Amount Share Change

Public administration 28,018 2.7 1.7 33,572 3.4 19.8
Military 181,923 17.8 -4.7 175,096 17.7 -3.8
Security & regional administration 102,348 10.0 -0.5 100,817 10.2 -1.5
Municipal services 53,560 5.3 -13.9 50,799 5.1 -5.2
Education 193,168 18.9 0.3 185,702 18.8 -3.9
Health & social development 166,980 16.4 -2.9 174,677 17.6 4.6
Economic resources 97,645 9.6 -25.7 72,395 7.3 -25.9
Infrastructure & transportation 55,705 5.5 -20.7 45,819 4.6 -17.7
General items 140,652 13.8 -9.9 151,123 15.3 7.4
Total 1,020,000 100.0 -7.8 990,000 100.0 -2.9

Source: MoF.
81
(VAT) on goods and services from 5 percent to 15 0.7 percent to SAR 69.3 billion, for subsidies by
percent as of July 2020. 61.1 percent to SAR 27.8 billion, and for grants by
274.0 percent to SAR 4.4 billion. In contrast, actual
Actual expenditures for fiscal year 2020 stood at expenditures for compensation of employees
SAR 1,075.7 billion or 41.0 percent of GDP, denoting decreased by 1.8 percent from the budgeted figure
increases of 5.5 percent over the budgeted figure to reach SAR 494.7 billion. Actual expenditures for
and 1.5 percent over the expenditures of the finance costs were 20.1 percent lower than the
preceding year. budgeted figure, at SAR 24.5 billion (Table 6.3).
As compared to the budgeted amounts, actual Actual Budget Deficit

expenditures for goods and services rose by The 2020 state budget recorded a deficit of SAR
45.2 percent to SAR 203.2 billion. Other actual 293.9 billion, constituting 11.2 percent of GDP,
expenditures also increased by 13.6 percent to SAR compared to a deficit of SAR 132.6 billion or 4.5
96.7 billion as compared to the budgeted amount. percent of GDP in the preceding fiscal year (Table
Actual expenditures for social benefits rose by 6.3 and Chart 6.2).
Chart 6.1: Budget Allocations for FY 2021 by Key Sectors (Percentage)
18.8
7.3
17.6
15.3
10.2
17.7
5.1
3.4 4.6
Economic resources Security & regional administration Public programs Health & social development
Military Education Infrastructure & transportation Municipal services
Public administration
Table 6.3: Actual Revenue and Expenditure

(Million SAR)
2018 (1439/1440H) 2019 (1440/1441H) 2020 (1441/1442H)
Ratio to Ratio to Ratio to

Value Change Value Change Value Change
GDP* GDP* GDP*
Total revenues 905,609 31.0 30.7 926,846 2.3 31.2 781,834 -15.6 29.8
Total expenditures 1,079,467 16.1 36.6 1,059,445 -1.9 35.6 1,075,734 1.5 41.0
Surplus/deficit -173,858.3 -27.1 -5.9 -132,599 -23.7 -4.5 -293,900 121.6 -11.2
*Including import duties (at current prices).
Source: MoF.
82
Public Finance
Domestic Loans and Subsidies SAR 223.8 million; and Saudi Falcon Club SAR 100.0
I. Domestic Loans million. Additionally, subsidies provided for King
Actual loans disbursed during 2020 totaled Abdulaziz Public Library stood at SAR 70.4 million,
SAR 661.8 million, increasing by 36.4 percent the International Dialogue Centre (KAICIID) SAR
as compared to the preceding year. Total loan 63.9 million, King Abdulaziz Center for National
repayments stood at SAR 229.3 million, recording a Dialogue (KACND) SAR 54.9 million, the Secretariat
decrease of 43.5 percent from the preceding year. of the Finance Committee SAR 30.0 million, Camel
Six loans were approved during fiscal year 2020 Club SAR 22.9 million, Waqf libraries SAR 10.0
(1441/1442H), four of which were for educational million, and the private schools SAR 7.5 million.
projects and two for health projects (Tables 6.4 and
6.5). Public Debt
Data of fiscal year 2020 indicate that total public
II. Domestic Subsidies debt registered an increase of 25.9 percent,
During fiscal year 2020 (1441/1442H), a total of SAR reaching SAR 853.5 billion or 32.5 percent of GDP
6.4 billion of subsidies were disbursed. Subsidies compared to SAR 677.9 billion or 22.8 percent of
provided for King Salman Humanitarian Aid and GDP at the end of fiscal year 2019. Domestic debt
Relief Centre stood at SAR 2.1 billion; livestock, stood at SAR 502.7 billion or 58.9 percent of total
poultry and fish farmers, and rural development public debt during 2020, while foreign debt stood
SAR 2.0 billion; imported fodder SAR 1.4 billion; at SAR 350.9 billion or 41.1 percent of total public
Equestrian Club SAR 281.9 million; infant formula debt (Table 6.6).
Chart 6.2: Budget Estimates and Actuals for FY 2020
1200
1000
800
600
400
Billion SAR
200
0
-200
-400
Total revenues Total expenditures Surplus/deficit
Actuals Budget projections
Table 6.4: Current Balances of Domestic Loan Program

(Million SAR)
2019 2020 Change
Actual loans disbursed 485.3 661.8 36.4

Actual loans repaid 405.8 229.3 -43.5
Source: MoF.
83
Table 6.5: Loans Extended During 2019-2020 by Field

(Million SAR)
Project contracts signed

Field 2019 2020
Number Value Number Value
Hospitality & tourism projects 1 7 -- --
Health projects 7 859 2 187
Educational projects 5 262 4 99
Total 13 1,128 6 286

Source: MoF.
Table 6.6: Public Debt

(Million SAR)
Borrowed Repaid Outstanding public debt at year-end

Ratio of public
FY Change
Debt Debt Debt Debt Debt Debt Total public debt to GDP
Domestic Foreign Domestic Foreign Domestic Foreign debt
2016 (1437/1438H) 97,020 103,125 25,825 -- 213,455 103,125 316,580 122.5 13.1
2017 (1438/1439H) 58,455 80,625 12,408 -- 259,502 183,750 443,252 40.0 17.2
2018 (1439/1440H) 48,750 71,250 3,272 -- 304,980 255,000 559,980 26.3 19.0
2019 (1440/1441H) 69,839 50,161 2,055 -- 372,764 305,161 677,925 21.1 22.8
2020 (1441/1442H)* 174,253 45,747 44,360 49.8 502,656 350,859 853,515 25.9 32.5
*Preliminary data.
Source: MoF.
84
7
CONSUMER
PRICE INDEX
of proportional distribution, in line with the

international recommendations in this regard.
Consumer Price Index

Consumer Price Index in 2020
The general CPI rose by 3.4 percent in 2020 versus
Inflation in Saudi Arabia is measured by using a 2.1 percent decline in 2019. This increase was
the general consumer price index (CPI) calculated mainly due to increasing the value-added tax
by the General Authority for Statistics (GaStat). (VAT) from 5 percent to 15 percent starting in
The CPI is one of the most important economic July of the same year. The non-oil GDP deflator,
indicators relating to daily life of individuals. It which captures the average prices of all goods and
provides information on the average price change services produced in the non-oil sector within a
of a basket of goods and services purchased in the given year, rose by 0.9 percent in 2020, the same
Saudi markets. rate of increase registered in 2019 (Table 7.1).
At the beginning of 2020, GaStat rebased the CPI In 2020, most major components of the general CPI
to 2018 from 2013, based on the international recorded inflation rates higher than the average
recommendations that suggest changing the annual change for the past three years (2017-2019).
base year every five years. In this regard, GaStat However, tobacco, education, and health recorded
updated the weights and components of the inflation rates lower than the average annual
consumer basket and changed the base year based change for the past three years (2017-2019).
on the results of the 2018 Household Income and
Expenditure Survey. Most sections of the CPI recorded annual increases
in 2020, namely food and beverages with 9.0
In its update, GaStat followed the latest percent; tobacco with 7.1 percent; communication
Classification of Individual Consumption with 4.8 percent; home furnishing, equipment
According to Purpose (COICOP) issued by the UN and maintenance with 4.6 percent; restaurants
in order to establish divisions, groups and classes and hotels with 4.3 percent; miscellaneous goods
constituting the consumer basket. GaStat used and services with 4.0 percent; transport with 3.8
the modified Laspeyres formula in calculating percent; clothing and footwear with 2.9 percent;
the CPI, which depends on the geometric mean recreation and culture with 1.8; and health with 1.1
Table 7.1: Annual Growth Rates of Selected Indicators
(Percentage)
2017 2018 2019 2020
Non-oil GDP deflator (2010 = 100)* 0.2 4.3 0.9 0.9
General CPI for all cities (2018 = 100) -0.8 2.5 -2.1 3.4
Price
Index Non-oil GDP at constant prices (2010 = 100)* 1.3 2.2 3.3 -2.3
GDP at constant prices (2010=100)* -0.7 2.4 0.3 -4.1
GDP deflator (2010 = 100)* 7.6 11.5 0.5 -7.9
Government expenditure 12.0 16.1 -1.9 1.5
Money supply (M3) 0.3 2.7 7.1 8.3

*Preliminary data in 2020.
Sources: GaStat, MoF & SAMA.
86
percent. On the other hand, education decreased different periods of time. The WPI represents
by 2.0 percent and housing, water, electricity, gas a sample of 343 items categorized into five
and other fuels by 0.6 percent (Table 7.2). main sections according to the Central Product
Classification (CPC2). The WPI increased by 3.4
Effect of Major Sections on Consumer percent in 2020 against a rise of 1.9 percent in
Price Index
Major sections contributed to the general CPI by Chart 7.1: Effect of Major Sections on 2020
various rates during 2020. Food and beverages Consumer Price Index
contributed the most with 40.6 percent, followed 5.5
by transport with 17.6 percent; miscellaneous 6.2
goods and services with 11.4 percent; housing,
water, electricity, gas and other fuels with 6.3
15.7
percent; home furnishing, equipment and 40.6
maintenance with 6.2 percent; communication

0.7
with 5.5 percent; restaurants and hotels with 4.9
percent; clothing and footwear with 2.4 percent; 6.3
education with 2.3 percent; recreation and culture 2.4

4.9 17.6
with 1.6 percent; tobacco with 0.7 percent; and
health with 0.4 percent (Table 7.3 and Chart 7.1). Food and Beverages Tobacco
Transport Home Furnishing, Equipment
Restaurants and Hotels and Maintenance
Wholesale Price Index in 2020 Clothing and Footwear Communications
The wholesale price index (WPI) measures Housing, Water, Electricity, Other Sections*
Gas, and Other Fuels
the average changes in local and imported *Other sections include health, recreation & culture, miscellaneous goods &
services, & education.
commodities in wholesale markets over two
Table 7.2: General Consumer Price Index (All Cities)

(2018 = 100)
Average annual
2016 2017 2018 2019 2020 change (2017- Change 2020
2019)
General index 98.4 97.6 100.0 97.9 101.3 -0.2 3.4
Food & beverages 94.7 93.9 100.0 102.1 111.3 2.6 9.0
Tobacco 63.2 80.0 100.0 101.0 108.1 17.5 7.1
Clothing & footwear 110.9 107.5 100.0 98.6 101.5 -3.8 2.9
Housing, water, electricity, gas, & other fuels 102.0 101.2 100.0 91.4 90.8 -3.5 -0.6
Home furnishing, equipment & Maintenance 100.4 98.5 100.0 99.4 104.0 -0.3 4.6
Health 96.3 96.3 100.0 100.1 101.3 1.3 1.1
Transport 92.2 90.3 100.0 98.6 102.4 2.4 3.8
Communication 99.7 98.8 100.0 98.7 103.5 -0.3 4.8
Recreation & culture 101.8 98.9 100.0 98.3 100.1 -1.1 1.8
Education 99.2 99.7 100.0 102.5 100.5 1.1 -2.0
Restaurants & hotels 92.5 93.0 100.0 103.2 107.7 3.7 4.3
Miscellaneous goods & services 99.8 99.7 100.0 99.6 103.5 -0.1 4.0
Source: GaStat.
87
2019. More specifically, it witnessed increases in Developments and Impact of World

most of its main components in 2020. Agriculture Prices
and fishery products recorded the highest increase The changes in world prices of goods and
of 12.5 percent, followed by metal products, commodities imported by Saudi Arabia affect the
machinery and equipment with 9.0 percent; food domestic CPI. Based on the Commodity Markets
products, beverages, tobacco and textiles with 6.8 Outlook issued by the World Bank in April 2021,
percent; and ores and minerals with 3.2 percent. the index of precious metals rose by 27.3 percent
However, other goods declined by 4.2 percent in 2020. The index of food products recorded an
(Table 7.4). increase of 6.9 percent. The energy index, however,
decreased by 31.4 percent and the index of raw
materials by 0.3 percent (Table 7.5).
Table 7.3: Impact of Major Sections on the General Consumer Price Index (All Cities)
(2018 = 100)
Impact of major sections

Change 2020 Weights
on 2020 index
General index 3.4 100.0 100.0
Food & beverages 9.0 18.8 40.6
Tobacco 7.1 0.6 0.7
Clothing & footwear 2.9 4.2 2.4
Housing, water, electricity, gas, & other fuels -0.6 25.5 6.3
Home furnishing, equipment & Maintenance 4.6 6.7 6.2
Health 1.1 1.4 0.4
Transport 3.8 13.1 17.6
Communication 4.8 5.6 5.5
Recreation & culture 1.8 3.1 1.6
Education -2.0 2.9 2.3
Restaurants & hotels 4.3 5.6 4.9
Miscellaneous goods & services 4.0 12.6 11.4

Source: GaStat.
Table 7.4: Average Annual Wholesale Price Index
(2014 = 100)
Change
Weights 2018 2019 2020
2019 2020
General index 100.0 116.8 119.1 123.2 1.9 3.4
Agriculture & fishery products 8.7 101.9 100.4 113.0 -1.5 12.5
Ores & minerals 0.6 98.7 97.3 100.4 -1.4 3.2
Food products, beverages, tobacco, & textiles 17.3 108.1 107.4 114.7 -0.6 6.8
Other goods* 33.7 143.9 145.6 139.5 1.2 -4.2
Metal products, machinery & equipment 39.7 101.1 106.1 115.7 4.9 9.0
*Other goods include wooden products, pulp & paper, refined petroleum products, basic chemicals, other chemical products & artificial fibers,
rubber & plastics products, glass & non-metallic products, & furniture & other transportable goods not elsewhere classified.
Source: GaStat.
88
The CPI in Saudi Arabia is also influenced by price percent in South Korea. On the other hand, the
levels in the top countries exporting to Saudi average consumer prices declined by 0.1 percent
Arabia. Table 7.6 shows the annual change in in Italy and 2.1 percent in the UAE but remained
consumer prices of Saudi Arabia’s top trading unchanged in Japan during 2020.
partners during 2020, according to the data of
the IMF’s World Economic Outlook published in In GCC countries, the average consumer prices
April 2021. In 2020, the average consumer prices decreased in 2020 by 2.5 percent in Qatar, 2.3
rose by 6.2 percent in India, 2.4 percent in China, percent in Bahrain, and 0.8 percent in Oman.
1.2 percent in the USA, 0.9 percent in the UK, 0.4 Conversely, the average consumer prices rose in
percent in Germany, 0.5 percent in France, and 0.5 Kuwait by 2.1 percent (Table 7.7).
Table 7.5: Selected Indices for Major Commodities
Change
2018 2019 2020
2019 2020
Commodity imports
Commodity imports (million SAR) 513,992.7 574,360.7 517,491.0 11.7 -9.9
Indices for major commodities (2010=100)
Energy products 85.5 76.4 52.4 -10.6 -31.4
Food products 88.9 87.4 93.4 -1.7 6.9
Raw materials 80.0 78.5 78.3 -1.9 -0.3
Precious metals 95.5 106.0 134.9 11.0 27.3
SAR real and nominal effective exchange rates
SAR nominal effective exchange rate* 114.3 118.1 118.7 3.3 0.6
SAR real effective exchange rate** 113.4 112.1 115.0 -1.1 2.5
*Represents the average riyal exchange rate over the period in relation to a geometric average of the exchange rates of Saudi Arabia’s top
trading partners.
**Represents the nominal effective exchange rate after adjustment in accordance with changes in the general price level.
Source: GaStat; Commodity Markets Outlook, World Bank, April 2021; & International Financial Statistics (IFS), IMF.

Table 7.6: Annual Changes in Consumer Prices in the Top Trading Partners
2016 2017 2018 2019 2020
Developed countries 0.7 1.8 2.1 1.5 0.8
Emerging & developing countries 4.3 4.4 4.9 5.1 5.1
Top Trading Partners
USA 1.3 2.1 2.4 1.8 1.2
Japan -0.1 0.5 1.0 0.5 0.0
UK 0.7 2.7 2.5 1.8 0.9
China 2.0 1.6 2.1 2.9 2.4
Germany 0.4 1.7 1.9 1.4 0.4
India 4.5 3.6 3.4 4.8 6.2
France 0.3 1.2 2.1 1.3 0.5
Italy -0.1 1.3 1.2 0.6 -0.1
UAE 1.6 2.0 3.1 -1.9 -2.1
South Korea 1.0 1.9 1.5 0.4 0.5

89
Table 7.7: Annual Changes in Consumer Prices in GCC Countries
2016 2017 2018 2019 2020*
UAE 1.8 2.5 3.1 -1.8 -2.1
Bahrain 2.7 1.4 2.1 1.0 -2.3
Qatar 2.7 0.5 0.3 -0.9 -2.5
Kuwait 3.5 1.6 0.6 1.1 2.1
Oman 1.1 1.6 0.9 0.1 -0.8

*Preliminary data.
Source: Arab Economic Outlook (AEO), Arab Monetary Fund (AMF), April 2021.
90
8
MONETARY
DEVELOPMENTS
also maintained the cash reserve requirements at

4.0 percent for time and savings deposits and at
Monetary Developments 7.0 percent for demand deposits, unchanged from

the preceding year. Moreover, SAMA has launched
open-market operations as a complementary tool
SAMA has been adopting a monetary policy to current issuances of SAMA bills in order to
aimed at achieving monetary stability, supporting augment short-term liquidity management in the
various economic sectors in line with domestic banking system. Furthermore, SAMA has decided
and international economic developments, to raise the weekly issuance ceiling for SAMA bills
and ensuring that domestic banks continue from SAR 3 billion to SAR 10 billion to promote
performing their financing role so as to meet liquidity management efficiency at banks.
economic needs. SAMA has also continued to
implement a fixed exchange rate policy of the Money Supply Growth
Saudi riyal against the US dollar at SAR 3.75 per Broad money (M3) — which comprises currency
one US dollar. The fixed exchange rate policy has in circulation and aggregate bank deposits —
been a cornerstone of the monetary and financial continued to increase in 2020, recording a growth
stability in light of strong foreign exchange of 8.3 percent (SAR 164.1 billion) to stand at
reserves and their sufficiency to meet all external SAR 2,149.3 billion, compared to an increase
obligations of Saudi Arabia. In 2020, the liquidity of 7.1 percent (SAR 131.5 billion) in 2019. Bank
in the financial system was ample enough to deposits, which represented 90.4 percent of M3,
meet the funding needs required to support the also increased by 8.2 percent (SAR 147.0 billion)
recovery of economic activities in Saudi Arabia compared to an increase of 7.3 percent (SAR 122.5
following the impact of the COVID-19 pandemic. billion) in 2019. Currency in circulation rose by 9.1
percent (SAR 17.1 billion) in 2020 compared to 5.0
Monetary Policy Tools percent (SAR 9.0 billion) in 2019.
Stemming from SAMA’s policy to maintain
monetary and financial stability in the face of A breakdown of bank deposits shows that demand
developments in global financial markets and deposits constituted the largest share of M3,
to support sustainable economic growth, SAMA standing at 59.7 percent in 2020, compared to
reduced the repo rate and reverse repo rate 55.4 percent in 2019. Furthermore, demand
by 1.25 percent each in 2020. The repo rate deposits increased by 16.7 percent (SAR 183.4
was fixed at 1.00 percent and the reverse repo billion) in 2020 compared to 5.6 percent (SAR 58.5
rate at 0.50 percent at end-2020. Despite the billion) in the preceding year. In contrast, time
challenges arising from COVID-19 pandemic, the and savings deposits declined by 5.5 percent (SAR
financial system retained abundant liquidity levels 27.7 billion) in 2020 compared to a rise of 13.2
within the banking system in 2020, owing to the percent (SAR 58.6 billion) in 2019. The share of
intervention of SAMA through the Private Sector time and savings deposits in M3 decreased to 22.1
Financing Support Program and liquidity support. percent in 2020 from 25.3 percent in the preceding
The average daily reverse repo transactions rose year. Other quasi-monetary deposits — which
to SAR 76.0 billion in 2020 from SAR 53.7 billion in comprise residents’ foreign currency deposits,
2019. On the other hand, the average daily repo deposits against outstanding letters of credit (LCs),
transactions declined to SAR 292.1 million in 2020 guarantees and remittances, and banks’ repo
from SAR 864.5 million in the preceding year. SAMA transactions with the private sector — recorded a
92
decrease of 4.5 percent (SAR 8.7 billion) in 2020 M1 (which comprises currency in circulation and
Monetary Developments
compared to an increase of 2.8 percent (SAR 5.3 demand deposits) recorded an increase of 15.6
billion) in 2019. The share of other quasi-monetary percent (SAR 200.6 billion) in 2020 compared to a
deposits in M3 constituted 8.7 percent in 2020 rise of 5.5 percent (SAR 67.5 billion) in 2019. The
compared to 9.8 percent in 2019 (Tables 8.1, 8.2 share of demand deposits in M1 increased to 86.1
and 8.3; Charts 8.1 and 8.2). percent in 2020 compared to 85.3 percent in the
preceding year. Moreover, M2 (comprising M1 and
As for the other key monetary aggregates (M1 and time and savings deposits) grew by 9.7 percent
M2), which include relatively more liquid deposits, (SAR 172.9 billion) in 2020 against an increase of
Chart 8.1: Growth Rates of Money Supply (M3) Chart 8.2: Components of Money Supply
10 2500
8 2000
Billion SAR
1500
Percentage
6
1000
4
500
2
0
0 2016 2017 2018 2019 2020
2016 2017 2018 2019 2020 Money Supply (M1) Money Supply (M2) Money Supply (M3)
Table 8.1: Money Supply
(Million SAR)
Time and Other quasi-

Currency in Demand M1 M2 M3
savings monetary
circulation deposits (1+2) (3+4) (5+6)
End of year deposits deposits*
(1) (2) (3) (4) (5) (6) (7)
2016 170,323 976,086 1,146,409 496,019 1,642,429 157,279 1,799,708
2017 172,046 1,002,468 1,174,514 454,152 1,628,666 176,505 1,805,171
2018 180,132 1,040,665 1,220,797 443,022 1,663,820 189,826 1,853,645
2019 189,160 1,099,151 1,288,311 501,667 1,789,978 195,161 1,985,139
2020 206,284 1,282,591 1,488,875 473,967 1,962,842 186,425 2,149,267

* Include residents’ foreign currency deposits, margin deposits against LCs, outstanding remittances, and banks’ repo transactions with private
parties.
Table 8.2: Growth Rates of Money Supply and Components
(Percentage)
Time and Other quasi-

Currency in Demand
End of year M1 savings M2 monetary M3
circulation deposits
deposits deposits*
2016 1.09 -0.41 -0.19 12.89 3.43 -20.39 0.79
2017 1.01 2.70 2.45 -8.44 -0.84 12.22 0.30
2018 4.70 3.81 3.94 -2.45 2.16 7.55 2.69
2019 5.01 5.62 5.53 13.24 7.58 2.81 7.09
2020 9.05 16.69 15.57 -5.52 9.66 -4.48 8.27
93
7.6 percent (SAR 126.2 billion) in 2019. The ratio 479.7 billion in 2020 compared to SAR 600.0 billion
of M1 to M3 went up from 64.9 percent in 2019 to in the preceding year. With all these factors, the
69.3 percent in 2020. The ratio of M2 to M3 also increase in money supply totaled SAR 164.1 billion
rose to 91.3 percent in 2020 compared to 90.2 in 2020 (Table 8.5 and Chart 8.3).
percent in 2019 (Table 8.4).
Monetary Base and Money Multiplier
Broad Money (M3): Causal Factors The monetary base is the narrowest measure of
M3 rose by 8.3 percent in 2020 to a record high liquidity, consisting of currency in circulation, cash
exceeding SAR 2 trillion, driven by a 14.0 percent in vault, and commercial banks’ and public financial
increase (SAR 215.9 billion) in bank claims on institutions’ deposits with SAMA. The monetary
the private sector to SAR 1,762.4 billion in 2020 base increased by 8.6 percent (SAR 28.0 billion) to
compared to an increase of 7.0 percent (SAR 101.3 SAR 352.7 billion in 2020 compared to a rise of 4.2
billion) in 2019. Specifically, this increase was percent (SAR 13.1 billion) in 2019.
attributable to a 59.1 percent YoY growth (SAR The share of currency in circulation in the monetary
117.1 billion) in retail real estate loans. Bank claims base stood at 58.5 percent in 2020 against
on public non-financial institutions also went 58.3 percent in the preceding year. Moreover,
up by 28.4 percent (SAR 17.5 billion) in 2020. In commercial banks’ deposits with SAMA recorded
addition, net other items increased by SAR 181.5 a rise of 12.4 percent (SAR 13.1 billion) in 2020
billion to SAR 161.8 billion in 2020. On the other against an increase of 5.5 percent (SAR 5.5 billion)
hand, the deficit in the private sector’s balance of in the preceding year. In contrast, public financial
payments expanded to reach SAR 710.8 billion in institutions’ deposits with SAMA decreased by 38.7
2020, compared to a deficit of SAR 558.0 billion percent (SAR 279.9 million) in 2020 compared to a
in the preceding year. Net domestic government decrease of 10.2 percent (SAR 82.6 million) in 2019.
riyal-denominated expenditures went down to SAR
Table 8.3: Money Supply Components

(Percentage in M3: end of period)
2016 2017 2018 2019 2020
Currency in circulation 9.5 9.5 9.7 9.5 9.6
Total deposits 90.5 90.5 90.3 90.5 90.4
Demand deposits 54.2 55.5 56.1 55.4 59.7
Time and savings deposits 27.6 25.2 23.9 25.3 22.1
Other quasi-monetary deposits 8.7 9.8 10.2 9.8 8.7
Money supply (M3) 100.0 100.0 100.0 100.0 100.0
Table 8.4: Monetary Ratios

(Percentage)
Period M1/ M3 M2/ M3
2016 63.7 91.3
2017 65.1 90.2
2018 65.9 89.8
2019 64.9 90.2
2020 69.3 91.3
94
Chart 8.3: Casual Factors for Change in M3
Deficit In The Private Sector’s Balance Of Payments Net Domestic Government Expenditure in Riyals
0 700
-100 600
-200 500
Billion SAR
Billion SAR
-300
400
-400
300
-500
-600
200
-700 100
-800 0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Other Items (Net) Change In Banks’ Claims On The Private Sector
200
250
100
200
Billion SAR
Billion SAR
0 150
100
-100 50
0
-200 -50
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Net Effect on M3
200
150
Billion SAR
100
50
0
2016 2017 2018 2019 2020
Table 8.5: Causal Factors for Change in M3

)Billion SAR(
2018 2019 2020
Change in M3 48.5 131.5 164.1
Causal Factors
Net domestic government expenditure* 569.1 600.0 479.7
Change in banks’ claims on the private sector 40.0 101.3 215.9
Change in banks’ claims on public non-financial institutions -0.1 7.9 17.5
Deficit in the private sector’s balance of payments** -625.3 -558.0 -710.8
Other items (net) 64.6 -19.7 161.8
Total 48.5 131.5 164.1
* Domestic government expenditure in riyals less local revenues in riyals.

** Estimated.
95
The money multiplier3 recorded a slight decrease of Monetary Survey

0.3 percent to 6.09 percent in 2020 compared to a The monetary survey is aimed at assessing the
rise of 2.8 percent in the preceding year (Table 8.6 status of the Saudi banking system (SAMA and
and Chart 8.4). commercial banks) as well as arranging the items
of the assets and liabilities of the banking system
Seasonal Trends of Currency in to understand any changes in the system. The
Circulation 2020 monetary survey indicated an increase of
Currency in circulation usually records its highest 3.0 percent (SAR 117.3 billion) in the assets of the
levels during two major Islamic events: the month banking system as a whole to SAR 4,032.3 billion in
of Ramadan and the Hajj season, which move 2020 compared to an increase of 4.1 percent (SAR
through the Gregorian calendar but have coincided 154.0 billion) in 2019 (Table 8.8).
in the last few Gregorian years with the second and
third quarters. This is demonstrated in the time Net foreign assets dropped by 8.9 percent (SAR
series data on currency in circulation (Table 8.7 and 170.8 billion) in 2020 compared to a decrease of
Chart 8.5). Currency in circulation reached its peak 1.7 percent (SAR 33.7 billion) in the preceding year.
of SAR 213.6 billion at end-May 2020 (Shawwal As a result, their share in total assets decreased
8, 1441H), whereas it recorded its lowest level of from 49.1 percent in 2019 to 43.5 percent in 2020.
SAR 191.0 billion at end-January 2020 (Jumada II This decrease was attributable to a decline of 9.1
6, 1441H). percent (SAR 168.3 billion) in SAMA’s foreign assets.
Chart 8.5: Seasonal Trends in Currency in

Chart 8.4: Monetary Base and Money Multiplier
Circulation
250
400 7.0
Monetary Base (Billion SAR)
350 200
6.5
300
6.0
Money Multiplier
250 150
Billion SAR
200 5.5
100
150
5.0
100 50
4.5
50
0 4.0 0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Monetary Base Money Multiplier Lowest level Highest level
Table 8.6: Monetary Base and Money Multiplier
2017 2018 2019 2020
Money multiplier 6.0 5.9 6.1 6.1
Monetary base (million SAR)
Currency in circulation 172,046 180,132 189,160 206,284
Cash in vault 31,311 30,733 29,319 27,384
Deposits with SAMA: Local banks’ deposits 97,534 99,943 105,470 118,539
Deposits with SAMA: Public financial institutions’ deposits 1,035 807 724 444
Total 301,926 311,615 324,674 352,651
3
Money multiplier is the ratio of broad money (M3) to the monetary base.
96
Table 8.7: Seasonal Trends of Currency in Circulation
Highest level of currency in circulation during the year Lowest Level of Currency in Circulation During the Year
End of Gregorian Corresponding Hijri End of Gregorian Corresponding Hijri

Quantity Quantity
month date month date
06/2016 26/09/1437 181,838 01/2016 21/04/1437 167,404
06/2017 06/10/1438 184,312 10/2017 11/02/1439 167,459
06/2018 16/10/1439 189,877 01/2018 14/05/1439 175,134
05/2019 26/09/1440 196,878 01/2019 25/05/1440 181,105
05/2020 08/10/1441 213,586 01/2020 06/06/1441 190,963
Table 8.8: Monetary Survey* (End of year)
)Million SAR(
2016 2017 2018 2019 2020
Assets
Net foreign assets 2,120,078 1,976,292 1,956,765 1,923,100 1,752,315
SAMA 1,982,348 1,833,355 1,835,866 1,852,626 1,684,317
Commercial banks 137,730 142,938 120,899 70,475 67,998
Domestic credit 1,651,672 1,713,578 1,804,171 1,991,837 2,279,967
Banks’ claims on the private sector 1,417,920 1,405,210 1,445,252 1,546,519 1,762,440
Banks’ claims on the government 178,416 254,545 305,154 383,672 438,370
Banks’ claims on public sector non-financial institutions 55,336 53,823 53,765 61,646 79,158
Total 3,771,750 3,689,871 3,760,936 3,914,938 4,032,283
Liabilities
Money supply (M3) 1,799,708 1,805,171 1,853,645 1,985,139 2,149,267
Government deposits** 875,424 737,716 681,492 622,945 585,029
Other items (net) 1,096,619 1,146,983 1,225,799 1,306,853 1,297,987
Total 3,771,750 3,689,871 3,760,936 3,914,938 4,032,283
(Percent change)
Net foreign assets -15.4 -6.8 -1.0 -1.7 -8.9
Domestic credit 9.4 3.7 5.3 10.4 14.5
Banks’ claims on the private sector 2.4 -0.9 2.8 7.0 14.0
Banks’ claims on the government 107.1 42.7 19.9 25.7 14.3
Banks’ claims on public sector non-financial institutions 41.9 -2.7 -0.1 14.7 28.4
Money supply (M3) 0.8 0.3 2.7 7.1 8.3
Government deposits** -24.7 -15.7 -7.6 -8.6 -6.1
Other items (net) 2.7 4.6 6.9 6.6 -0.7

* The consolidated financial position of SAMA and commercial banks.
** Including LCs and bills for collection.
97
In contrast, bank claims on the private and public Exchange Rate Trends
sectors and on public non-financial institutions SAMA maintained its US dollar-pegged monetary
went up by 14.5 percent (SAR 288.1 billion) at end- policy, which aims to maintain the stability of
2020 (Table 8.8). the Saudi riyal exchange rate in order to serve
the interests of the Saudi economy. This policy
Government deposits with SAMA, however, fell by positively kept the exchange rate fixed at SAR
6.1 percent (SAR 37.9 billion) in 2020 compared 3.75 per US dollar in the spot markets in 2020. It
to a fall of 8.6 percent (SAR 58.5 billion) in the is worth mentioning that the Saudi riyal exchange
preceding year. rate averaged SAR 3.7537 per US dollar in 2020
compared to SAR 3.7508 in 2019. The highest
Interest Rate Trends exchange rate recorded in 2020 was SAR 3.7694
The average three-month Saudi interbank offered versus 3.7535 in 2019. The lowest exchange rate
rate (SAIBOR) declined by 144 basis points to 1.19 recorded in 2020 was 3.7503 (Table 8.10).
percent in 2020 compared to 2.63 percent in 2019.
The average three-month interest rate on USD
deposits (LIBOR) also decreased by 168 basis points
from 2.33 percent in 2019 to 0.65 percent in 2020.
The interest rate spread (the differential between
the two average rates) increased to 54 basis points
in 2020 in favor of the Saudi riyal, compared to 30
basis points in 2019 (Table 8.9 and Chart 8.6).
Table 8.9: Interest Rates on SAR and USD Deposits*
)3-Month Average Rates(
Difference between SAR and

Year SAR deposits (SAIBOR 3M) USD deposits (LIBOR 3M)
USD interest rates
2016 2.07 0.73 1.34
2017 1.81 1.26 0.55
2018 2.45 2.31 0.14
2019 2.63 2.33 0.30
2020 1.19 0.65 0.54

* Interbank offered rates.
Chart 8.6: Interest Rates on SAR and USD Deposits (3-Month Average Rates)
3.0
2.5
2.0
Average rates
1.5
1.0
0.5
0.0
2016 2017 2018 2019 2020
SAR Deposits USD Deposits
98
Table 8.10: Indicators of USD/SAR Exchange Rate in the Spot Market*
Average rate (for the entire

Year Highest rate Lowest rate
period)
2015 3.7615 3.7498 3.7512
2016 3.7587 3.7489 3.7508
2017 3.7518 3.7499 3.7503
2018 3.7530 3.7498 3.7506
2019 3.7535 3.7500 3.7508
2020 3.7694 3.7503 3.7537

* Source: Bloomberg.
99
9
BANKING
SECTOR
Consolidated Financial Position of

Banks
Banking Sector Commercial banks performed well in 2020 as their
total assets rose by 13.2 percent (SAR 348.5 billion)
to SAR 2,979.6 billion, compared to an increase of
Despite the exceptional circumstances of the 9.7 percent (SAR 233.0 billion) in 2019 (Table 9.1).
COVID-19 pandemic, which significantly impacted
the global economy including the Saudi economy Bank Deposits
in 2020, the Saudi banking sector has remained Total bank deposits increased by 8.2 percent
resilient and stable, owing to the procedures (SAR 147.0 billion) to SAR 1,943.0 billion in 2020
and measures taken collectively by SAMA and compared to an increase of 7.3 percent (SAR 122.5
Saudi banks. Such efforts have played a major billion) in the preceding year (Table 9.2 and Charts
role in mitigating potential adverse impacts of 9.1 and 9.2).
the COVID-19 pandemic on the private sector
in general and banking sector in particular. The A review of developments in bank deposits by type
positive results can be seen through the financial shows that demand deposits rose by 16.7 percent
soundness indicators as capital adequacy ratio (SAR 183.4 billion) to SAR 1,282.6 billion in 2020
rose to 20.3 percent, exceeding international compared to a rise of 5.6 percent (SAR 58.5 billion)
requirements of the Basel Committee on Banking in the preceding year, bringing up their share in
Supervision (BCBS). Banks’ assets and deposits total deposits to 66.0 percent from 61.2 percent
also increased by 13.2 percent and 8.2 percent, at the end of the preceding year. On the other
respectively. hand, time and savings deposits decreased by 5.5
percent (SAR 27.7 billion) to SAR 474.0 billion in
2020 compared to a rise of 13.2 percent (SAR 58.6
Table 9.1: Consolidated Financial Position of Commercial Banks (End of period)
(Million SAR)
2016 2017 2018 2019 2020
Assets
Bank reserves 239,920 243,294 222,856 239,375 288,177
Foreign assets 233,832 262,124 231,832 243,629 250,064
Claims on the public sector 233,752 308,368 358,919 445,318 517,527
Claims on the private sector 1,417,920 1,405,210 1,445,252 1,546,519 1,762,440
Claims on non-monetary financial institutions 4,442 2,600 1,041 1,398 1,419
Other assets 159,136 129,295 138,246 154,888 159,998
Total assets (liabilities) 2,289,001 2,350,891 2,398,147 2,631,128 2,979,625
Liabilities
Bank deposits 1,629,385 1,633,125 1,673,513 1,795,979 1,942,984
Foreign liabilities 96,101 119,186 110,933 173,155 182,066
Capital and reserves 298,392 317,067 303,439 342,976 377,099
Profits 40,398 43,857 48,148 50,315 38,701
Other liabilities 224,725 237,655 262,113 268,703 438,776
102
Banking Sector
billion) in the preceding year. Their share in total A breakdown of deposits by sector shows that
deposits also declined to 24.4 percent from 27.9 deposits of the private sector increased by 9.2
percent at the end of the preceding year. percent (SAR 127.8 billion) to SAR 1,518.3 billion
in 2020 compared to a rise of 4.5 percent (SAR
Moreover, other quasi-monetary deposits (the 60.1 billion) in the previous year. The share of the
majority of which are residents’ foreign currency private sector deposits in total bank deposits rose
deposits) went down by 4.5 percent (SAR 8.7 to 78.1 percent compared to 77.4 percent at the
billion) to SAR 186.4 billion in 2020, compared end of the previous year.
to an increase of 2.8 percent (SAR 5.3 billion) in
the preceding year. Their share in total deposits Additionally, deposits of the public sector registered
decreased to 9.6 percent from 10.9 percent at the an increase of 4.7 percent (SAR 19.2 billion) to SAR
end of the preceding year (Chart 9.3). 424.7 billion, compared to an increase of 18.2
Chart 9.1: Total Domestic and Foreign Deposits to

Chart 9.2: Growth Rates of Bank Deposits
Total Bank Deposits
30
100 8.8 9.0 8.6 7.4 20
7.9
75 10
Percentage
Percentage
0
50
92.1 91.2 91.0 91.4 92.6
-10
25
-20
0
-30
2016 2017 2018 2019 2020
2016 2017 2018 2019 2020
Domestic currency deposits Foreign currency deposits Demand deposits Time & savings deposits
Other quasi - monetary deposits
Table 9.2: Bank Deposits (End of period)
(Million SAR)
2016 2017 2018 2019 2020
I. By type
Demand deposits 976,086 1,002,468 1,040,665 1,099,151 1,282,591
Time & savings deposits 496,019 454,152 443,022 501,667 473,967
Other quasi-monetary deposits: 157,279 176,505 189,826 195,161 186,425
Foreign currency deposits 128,944 144,333 149,976 155,039 144,064
For L/Cs 18,085 18,517 25,409 24,191 25,973
Repo transactions 81 51 0 0 1
Outstanding remittances 10,169 13,604 14,440 15,931 16,387
II. By sector
Private sector 1,316,052 1,283,622 1,330,444 1,390,494 1,518,294
Public sector 313,333 349,503 343,069 405,485 424,689
III. By currency
Domestic currency deposits 1,500,441 1,488,792 1,523,537 1,640,940 1,798,920
Foreign currency deposits 128,944 144,333 149,976 155,039 144,064
Total bank deposits 1,629,385 1,633,125 1,673,513 1,795,979 1,942,984
103
percent (SAR 62.4 billion) in the preceding year, Total bank claims on the private sector went up
bringing down the share of the sector’s deposits by 14.0 percent (SAR 215.9 billion) to SAR 1,762.4
in total deposits to 21.9 percent at end-2020 from billion in 2020, compared to a rise of 7.0 percent
22.6 percent at end-2019. (SAR 101.3 billion) in the preceding year. Total bank
credit extended to the private and public sectors
A review of developments in bank deposits by grew by 14.8 percent during 2020. Bank claims
currency shows that domestic currency deposits on the private sector constituted 90.7 percent of
increased by 9.6 percent (SAR 158.0 billion) to SAR total bank deposits at end-2020, compared to 86.1
1,798.9 billion in 2020, compared to a rise of 7.7 percent at end-2019.
percent (SAR 117.4 billion) in the preceding year.
Their share in total deposits rose slightly to 92.6 Bank claims on the public sector (credit to public
percent at end-2020. Foreign currency deposits, institutions and government and quasi-government
however, decreased by 7.1 percent (SAR 11.0 billion) bonds) increased by 16.2 percent (SAR 72.2 billion)
to SAR 144.1 billion, compared to an increase of 3.4 to SAR 517.5 billion in 2020, compared to a rise
percent (SAR 5.1 billion) in the previous year. Their of 24.1 percent (SAR 86.4 billion) in the preceding
share in total deposits went down to 7.4 percent at
end-2020.
Chart 9.3: Shares of Deposit Components
Bank Claims on the Private and Public 100

90
9.7 10.8 11.3 10.9 9.6
Sectors 80
30.4 27.8 26.5 27.9 24.4
70
Total bank claims on the private and public sectors
Percentage
60
increased by 14.5 percent (SAR 288.2 billion) to SAR 50
40
2,281.4 billion in 2020, compared to an increase of 30 59.9 61.4 62.2 61.2 66.0
20
10.4 percent (SAR 188.0 billion) in the preceding 10
year. Total claims on the private and public sectors 0
2016 2017 2018 2019 2020
at end-2020 accounted for 117.4 percent of total
Demand deposits Time & savings deposits
bank deposits, compared to 111.0 percent at the Other quasi - monetary deposits
end of the preceding year.

Table 9.3: Bank Claims on Private and Public Sectors (End of period)
(Million SAR)
2018 2019 2020
Amount Share Amount Share Amount Share
Claims on the private sector 1,445,252 80.1 1,546,519 77.6 1,762,440 77.3
Bank credit 1,388,940 76.9 1,490,833 74.8 1,703,432 74.7
Loans & advances 1,375,628 76.2 1,477,980 74.1 1,690,316 74.1
Bills discounted 13,312 0.7 12,853 0.6 13,117 0.6
Investments in private securities 56,312 3.1 55,686 2.8 59,008 2.6
Claims on the public sector 358,919 19.9 445,318 22.3 517,527 22.7
Bank credit to public institutions 53,765 3.0 61,646 3.1 79,158 3.5
Government bonds 305,154 16.9 383,672 19.2 438,370 19.2
Claims on non-monetary financial institutions 1,041 0.1 1,398 0.1 1,419 0.1
Total 1,805,213 100.0 1,993,235 100.0 2,281,386 100.0
104
Banking Sector
year. This rise is attributable to 28.4 percent growth to SAR 260.8 billion, compared to a modest rise of
of bank credit to public institutions against 14.7 3.0 percent (SAR 6.7 billion) in the preceding year.
percent growth in the preceding year. Bank claims Long-term credit (more than 3 years) also increased
on the public sector constituted 26.6 percent of by 29.8 percent (SAR 189.0 billion) to SAR 823.6
total bank deposits in 2020 compared to 24.8 billion, compared to an increase of 27.0 percent
percent in the previous year. (SAR 134.8 billion) in the preceding year (Table 9.4).
Furthermore, claims on non-monetary financial Bank Credit by Economic Activity

institutions went up by 1.5 percent (SAR 20.6 A breakdown of bank credit by economic activity
million) at end-2020, compared to a rise of 34.3 during 2020 shows mixed trends. Bank credit
percent (SAR 356.8 million) at the end of the extended to mining and quarrying recorded the
preceding year (Table 9.3 and Charts 9.4 and 9.5). highest growth rate compared to the rest of
economic activities, rising by 26.5 percent (SAR 5.2
Bank Credit by Maturity billion) to SAR 24.9 billion compared to a rise of 1.8
Short-term bank credit (less than one year) percent (SAR 353.5 million) in the preceding year.
extended to the private sector and institutions of Moreover, bank credit extended to the services
the public sector increased by 2.2 percent (SAR activity went up by 17.0 percent (SAR 13.8 billion)
14.9 billion) to SAR 698.1 billion in 2020, compared to SAR 95.0 billion, compared to a rise of 3.0 percent
to a decrease of 4.4 percent (SAR 31.7 billion) in (SAR 2.4 billion) in the preceding year. Bank credit
the preceding year. Likewise, medium-term credit extended to the agriculture and fishing activity
(1-3 years) rose by 11.2 percent (SAR 26.2 billion) grew by 11.7 percent (SAR 1.7 billion) to SAR 16.4
Chart 9.4: Bank Claims on Private Sector (Monthly) Chart 9.5: Bank Claims By Sector (Monthly)
1800 200 1800 800
1700 180 1700 700

160 600
1600 1600
140
1500 1500 500
Billion SAR
120
Billion SAR
1400 90 1400 400
1300 80 1300 300

60
1200 1200 200
40
1100 1100 100
20
1000 0 1000 0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Bank credit (left) Investments (right) Private sector (left) Public sector (right)
Table 9.4: Bank Credit by Maturity
(Million SAR)
End of year Short term Medium term Long term Total
2016 711,227 266,524 441,193 1,418,945
2017 701,233 267,155 436,562 1,404,950
2018 714,927 227,911 499,867 1,442,705
2019 683,215 234,625 634,639 1,552,479
2020 698,110 260,838 823,642 1,782,590

Note: Short term: less than 1 year; Medium term: 1 - 3 years; Long term: more than 3 years.
105
billion compared to a decline of 0.9 percent (SAR compared to a rise of 2.0 percent (SAR 5.6 billion)
127.2 million) in the preceding year. Bank credit in the preceding year. On the other hand, bank
to the finance sector also went up by 11.2 percent credit extended to ‘manufacturing and production’
(SAR 4.6 billion) to SAR 46.1 billion, compared and ‘building and construction’ declined by 0.4
to a rise of 11.1 percent (SAR 4.2 billion) in the percent each (SAR 644.1 million and SAR 382.5
preceding year. Bank credit extended to water, million, respectively) to SAR 156.1 billion and SAR
electricity, gas and health services also increased 92.5 billion, respectively, compared to decreases
by 8.9 percent (SAR 5.4 billion) to SAR 66.5 billion, of 9.3 percent (SAR 16.1 billion) and 4.6 percent
compared to a rise of 17.0 percent (SAR 8.9 billion) (SAR 4.5 billion), respectively, in the preceding year.
in the preceding year. Furthermore, bank credit Credit extended to transport and communications
extended to the commerce activity grew by 4.2 was significantly affected during 2020, which may
percent (SAR 12.2 billion) to SAR 300.1 billion, be attributable to measures taken in response to
Chart 9.6: Bank Credit Extended by Economic Activity (Percentage)
2019 2020
45.9 50.4
5.4
2.8 5.6
3.4 1.0 1.0
2.7
2.8 9.2
10.5
19.3 1.3 1.5

17.6 3.9
4.1 5.4
6.2
Manufacturing & production Water, electricity, gas & health services Commerce Agriculture & fishing Finance
Mining & quarrying Building & construction Transport & Communications Other miscellaneous services Services
Table 9.5: Bank Credit Extended to Private Sector by Economic Activity (End of period)
(Million SAR)
2018 2019 2020
Amount Share Amount Share Amount Share
Agriculture & fishing 14,780 1.1 14,653 1.0 16,363 1.0
Manufacturing & production 172,858 12.4 156,754 10.5 156,110 9.2
Mining & quarrying 19,354 1.4 19,707 1.3 24,932 1.5
Water, electricity, gas & health services 52,171 3.8 61,049 4.1 66,456 3.9
Building & construction 97,326 7.0 92,850 6.2 92,468 5.4
Commerce 282,344 20.3 287,923 19.3 300,141 17.6
Transport & communications 43,282 3.1 51,237 3.4 47,315 2.8
Finance 37,313 2.7 41,465 2.8 46,108 2.7
Services 78,860 5.7 81,217 5.4 94,996 5.6
Other miscellaneous services 590,652 42.5 683,977 45.9 858,544 50.4
Total 1,388,940 100.0 1,490,833 100.0 1,703,432 100.0
106
Banking Sector
the COVID-19 pandemic. It fell by 7.7 percent (SAR residents rose by 6.5 percent to SAR 23 billion
3.9 billion) against a growth rate of 18.4 percent (Table 9.6).
(SAR 7.9 billion) in the preceding year (Table 9.5
and Chart 9.6). Chart 9.7: Total Consumer Loans
400
Syndicated Loans 380
365.2
Data on syndicated loans extended to residents
360
indicate that their number decreased by 21.7
Billion SAR
340
percent to 411 in 2020. Syndicated loans extended 320
318.3
to non-residents also went down by 15.3 percent 300

to 83. The total value of syndicated loans extended 280
to residents fell by 59.8 percent to SAR 179 billion 260
in 2020, while the value of loans extended to non- 240
2016 2017 2018 2019 2020
Table 9.6: Syndicated Loans
No. of syndicated loans Value of syndicated loans (billion SAR)

Year
Resident Non-resident Total Resident Non-resident Total
2016 555 76 631 195 16 211
2017 513 74 587 189 12 201
2018 571 78 649 341 14 355
2019 525 98 623 446 22 467
2020 411 83 494 179 23 202
Table 9.7A: Consumer and Credit Card Loans*
(Million SAR)
Consumer loans
Year Motor vehicles Furniture
Renovation & Credit
(end of & & Health Tourism &
property Education Other Total cards**
period) personal durable care travel
improvement
transportation goods
2016 29,080.2 9,327.8 4,821.8 957.6 506.5 72.1 273,499.5 318,265.5 10,957.7
2017 30,028.0 16,720.0 10,783.9 3,722.5 565.6 324.3 255,515.0 317,659.3 12,094.0
2018 28,055.1 16,789.4 12,498.7 3,522.2 703.5 483.6 259,234.4 321,286.9 15,331.9
2019 25,648.2 15,625.0 12,462.1 3,239.0 559.4 454.7 275,450.4 333,438.7 19,054.3
2020 23,872.0 14,469.3 12,012.4 4,167.5 549.5 571.5 309,605.2 365,247.5 18,373.3
* Excluding real estate finance, leasing, & finance for stocks trading.
** Including Visa, MasterCard, American Express & others.
Note: Data were updated following amendments made to some items of Consumer Loans.

Table 9.7B: Real Estate Loans from Commercial Banks
(Million SAR)
Year (end of period) Retail Corporate Total
2016 110,484 89,918 200,402
2017 121,249 89,744 210,992
2018 140,276 98,268 238,544
2019 198,100 99,272 297,372
2020 315,199 113,212 428,411
107
Consumer and Credit Card Loans (SAR 58.8 billion) in the preceding year. Retail real
Consumer and credit card loans extended by estate loans recorded a rise of 59.1 percent (SAR
commercial banks went up by 8.8 percent to SAR 117.1 billion) to SAR 315.2 billion, compared to an
383.6 billion at end-2020, compared to SAR 352.5 increase of 41.2 percent (SAR 57.8 billion) in the
billion at the end of the preceding year (Table 9.7A preceding year, accounting for 73.6 percent of total
and Chart 9.7). real estate loans at end-2020. Corporate real estate
loans extended by commercial banks also rose by
Real Estate Bank Credit 14.0 percent (SAR 13.9 billion) to SAR 113.2 billion
Retail and corporate real estate loans extended by in 2020, compared to a rise of 1.0 percent (SAR 1
banks continued their growth to SAR 428.4 billion, billion) in the preceding year, accounting for 26.4
increasing by 44.1 percent (SAR 131.0 billion) in percent of total real estate loans (Table 9.7B).
2020, compared to a growth rate of 24.7 percent
Chart 9.8: Foreign Assets and Liabilities of Banks Chart 9.9: Ratio of Foreign Assets and Liabilities to
(monthly) Total Assets and Liabilities
330
15
280
Percentage
230
Billion SAR
10
180
130 5
80
0
30 2016 2017 2018 2019 2020
2016 2017 2018 2019 2020
Foreign assets Foreign liabilities Foreign assets Foreign liabilities
Table 9.8: Commercial Banks’ Foreign Assets and Liabilities (End of period)
(Million SAR)
Amount Change
2019 2020
2019 2020
Amount Percentage Amount Percentage
Foreign assets
Due from foreign banks 47,538 47,755 -18,657 -28.2 217 0.5
Due from branches abroad 63,227 56,851 23,285 58.3 -6,376 -10.1
Other assets 35,253 38,659 8,310 30.8 3,406 9.7
Investments abroad 97,612 106,800 -1,141 -1.2 9,188 9.4
Total 243,629 250,064 11,797 5.1 6,435 2.6
Foreign liabilities
Due to foreign banks 102,350 94,709 41,569 68.4 -7,641 -7.5
Due to branches abroad 38,705 43,733 6,622 20.6 5,029 13.0
Due from others 32,100 43,624 14,031 77.6 11,524 35.9
Total 173,155 182,066 62,222 56.1 8,911 5.1
Net foreign assets 70,475 67,998 -50,424 -41.7 -2,476 -3.5
108
Banking Sector
Commercial Banks’ Foreign Assets and Commercial Banks’ Cash Reserves
Liabilities Commercial banks’ cash reserves (cash in vault
Foreign assets of commercial banks went up by and deposits with SAMA) went up by 20.4 percent
2.6 percent (SAR 6.4 billion) to SAR 250.1 billion at (SAR 48.8 billion) to SAR 288.2 billion at end-2020,
end-2020 compared to an increase of 5.1 percent compared to a rise of 7.4 percent (SAR 16.5 billion)
(SAR 11.8 billion) in the preceding year. Similarly, in the preceding year. The increase was due to a
foreign liabilities of commercial banks rose by 36.4 percent (SAR 38.7 billion) increase in other
5.1 percent (SAR 8.9 billion) to SAR 182.1 billion deposits with SAMA, which reached SAR 145.3
in 2020, compared to a rise of 56.1 percent (SAR billion at end-2020 against SAR 106.5 billion at end-
62.2 billion) in the preceding year. As a result, 2019. Statutory deposits with SAMA also increased
commercial banks’ net foreign assets (foreign assets by SAR 12.1 billion or 11.8 percent to SAR 115.1
less foreign liabilities) dropped by 3.5 percent (SAR billion. In contrast, current deposits with SAMA fell
2.5 billion) to SAR 68.0 billion in 2020, compared to by 27.2 percent (SAR 161.5 million) to SAR 431.7
a decrease of 41.7 percent (SAR 50.4 billion) in the million. Cash in commercial banks’ vaults declined
preceding year (Table 9.8 and Charts 9.8 and 9.9). by 6.6 percent or SAR 1.9 billion to SAR 27.4 billion
at end-2020 from SAR 29.3 billion at end-2019
(Table 9.9).
Table 9.9: Commercial Banks’ Reserves (End of period)
(Million SAR)
2016 2017 2018 2019 2020
Cash in vault 29,666 31,311 30,733 29,319 27,384

Deposits with SAMA
Current deposits 328 268 1,401 593 432
Statutory deposits 97,267 96,282 98,060 102,918 115,067
Other deposits 112,659 115,433 92,662 106,545 145,294
Banks' reserves 239,920 243,294 222,856 239,375 288,177

Ratios to bank deposits
Cash in vault 1.82 1.92 1.84 1.63 1.41
Deposits with SAMA
Current deposits 0.02 0.02 0.08 0.03 0.02
Statutory deposits 5.97 5.90 5.86 5.73 5.92
Other deposits 6.91 7.07 5.54 5.93 7.48
Banks' reserves 14.72 14.90 13.32 13.33 14.83
Table 9.10: Capital and Reserves of Commercial Banks (End of period)
(Million SAR)
2016 2017 2018 2019 2020
Capital & reserves 298,392 317,067 303,439 342,976 377,099
Capital & reserves as a ratio of
Bank deposits 18.3 19.4 18.1 19.1 19.4
Total assets 13.0 13.5 12.7 13.0 12.7
Capital to risk-weighted assets ratio (Basel Standard) 19.5 20.4 20.3 19.4 20.3
109
Banks’ Capital and Reserves percent (SAR 8.9 billion), and interbank claims for
Banks’ capital and reserves increased by SAR 1.7 percent (SAR 5.9 billion) of the total.
34.2 billion or 10.0 percent to SAR 377.1 billion
in 2020, compared to a rise of SAR 39.5 billion or Most of these financial resources were used during
13.0 percent in the preceding year. Their ratio to 2020 to increase cash reserves with an amount of
total deposits increased from 19.1 percent at end- SAR 48.8 billion, accounting for 13.6 percent of
2019 to 19.4 percent at end-2020, whereas their total resources used. In addition, foreign assets
ratio to total assets declined from 13.0 percent at increased by SAR 6.4 billion (1.8 percent of the
end-2019 to 12.7 percent at end-2020. The capital total). SAMA bills also rose to SAR 4.1 billion (1.2
adequacy ratio (CAR) stood at 20.3 percent at end- percent of the total). Claims on the private sector
2020, which is higher than the recommended ratio and on the government and public sector went up
according to Basel III (Table 9.10). by SAR 21.6 billion and SAR 72.2 billion, respectively.
Claims on the private sector accounted for 60.3
Sources and Uses of Financial percent of the total resources used, whereas claims
Resources of Commercial Banks in on the government and public sector accounted for
2020 20.2 percent. Moreover, claims on non-monetary
Total added financial resources of commercial banks financial institutions rose by SAR 20.6 million,
jumped by 58.2 percent to SAR 358.3 billion in 2020 accounting for 0.01 percent of the total. Fixed assets
from SAR 226.5 billion in 2019. Key added financial and other assets rose by SAR 938.8 million and SAR
resources were from several items; however, 8.1 billion, respectively, as fixed assets accounted
total deposits and SAMA claims accounted for the for 0.3 percent and other assets 2.3 percent of the
highest shares of 41.0 percent (SAR 147 billion) total (Table 9.11).
and 29.6 percent (SAR 106.2 billion), respectively,
of total added financial resources. Other liabilities Commercial Banks’ Profits
accounted for 18.9 percent (SAR 67.7 billion) of the Commercial banks’ profits decreased by 23.1
total. In addition, the capital base accounted for 6.3 percent to SAR 38.7 billion in 2020, below 2019
percent (SAR 22.5 billion), foreign liabilities for 2.5 profits of SAR 50.3 billion.
Table 9.11: Key Sources and Uses of Financial Resources of Commercial Banks in 2020
(Million SAR)
Uses Amount Share Resources Amount Share
Cash reserves 48,801.9 13.6 Total deposits 147,004.3 41.0
SAMA bills 4,132.8 1.2 Foreign liabilities 8,911.2 2.5
Foreign assets 6,434.8 1.8 Capital base 22,508.4 6.3
Claims on the private sector 215,921.1 60.3 Interbank claims 5,914.9 1.7
Claims on the government and
72,209.0 20.2 SAMA claims 106,190.9 29.6
public sector
Claims on non-monetary
20.6 0.0 Other liabilities 67,741.2 18.9
financial institutions
Reverse repo transactions 1,690.0 0.5
Fixed assets 938.8 0.3
Other assets 8,122.0 2.3
Total 358,270.9 100.0 Total 358,270.9 100.0
110
Banking Sector
Number of Banks and Branches male employees accounted for 78.5 percent of
The number of commercial banks operating in the total number of employees as compared to
Saudi Arabia stood at 29 (12 local and 17 foreign 5.1 percent of non-Saudi male employees. Saudi
bank branches) at end-2020. The number of female employees represented 16.3 percent of the
their branches declined to 2,014, down by 62 total number of employees, whereas non-Saudi
compared to the preceding year. A breakdown of female employees accounted for 0.03 percent.
bank branches by administrative regions shows
that Riyadh region accounted for 612 branches, Banking Technology Developments in
Makkah region 424 branches, the Eastern Region 2020
387 branches, Asir region 125 branches, Al-Qassim I. Clearing House Operations
region 117 branches, and Madinah region 101 The number of commercial and personal checks
branches (Table 9.12). cleared through clearing houses in Saudi Arabia
decreased by 34.5 percent (993.4 thousand checks)
Number of Employees in the Banking in 2020, dropping their value by 29.5 percent to
Sector SAR 183.6 billion. However, the average check
The number of (male and female) employees in the value increased by 7.7 percent from SAR 90,576 in
banking sector declined by 2.4 percent to 46,049 2019 to SAR 97,523 in 2020.
in 2020. Saudi (male and female) employees
represented 94.8 percent (43,672) of the total The number of checks in Riyadh clearing house
number of employees in the banking sector. Saudi declined by 31.8 percent to 692.5 thousand,
Chart 9.10: Share of Commercial & Personal Checks Cleared by City
2019 2020
Riyadh
Dammam
Jeddah
Buraydah
Abha
Al-Madinah
Makkah
Jazan
Tabuk
Al-Ta'if
0 5 10 15 20 25 30 35 40 45 50 0 5 10 15 20 25 30 35 40 45 50
Table 9.12: Bank Branches Classified by Administrative Region (End of period)
Northern
Eastern
Year Riyadh Makkah Madinah Qassim Asir Tabuk Ha’il Borders Jawf Jazan Najran Baha Total
Region
Region
2016 624 433 100 393 116 124 50 42 16 27 50 27 27 2,029
2017 631 436 106 405 119 126 51 42 17 28 53 27 28 2,069
2018 629 435 105 401 120 127 50 42 17 28 55 28 27 2,064
2019 626 442 104 408 120 128 51 42 17 27 57 27 27 2,076
2020 612 424 101 387 117 125 50 43 19 28 55 27 26 2,014
111
Dammam 34.3 percent to 541.3 thousand, Jeddah in the preceding year. The number of ATM cards
29.8 percent to 436.0 thousand, Madinah 58.6 issued increased by 8.9 percent to 34.3 million at-
percent to 26.3 thousand, Buraidah 47.9 percent end 2020 compared to an increase of 10.4 percent
to 68.7 thousand, Makkah 55.9 percent to 32.8 in 2019. On the contrary, the number of cash
thousand, Tabuk 36.2 percent to 17.9 thousand, withdrawal transactions carried out through Mada
Ta’if 38.7 percent to 13 thousand, and Abha 43.3 dropped by 22.6 percent to 761 million in 2020 as
percent to 45.4 thousand (Chart 9.10). compared to a rise of 3.6 percent in the preceding
year. The value of withdrawals carried out through
II. Mada Mada also decreased by 17.6 percent to SAR
The number of automated teller machine (ATMs) 386.5 billion, compared to a rise of 3.5 percent
operating in Saudi Arabia went down by 3.1 in 2019. The number of transactions executed
percent to 18,299 compared to a 1.1 percent rise through banks’ networks fell by 13.7 percent to
Chart 9.11: ATM Statistics
No. of ATMs No. of issued ATM cards

21.0
40.0
18.0
15.0 30.0
12.0
Thousands
Millions
9.0 20.0
6.0
10.0
3.0
0.0 0.0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Withdrawals and transactions

2500 1200
1100
2000
Million transactions
1000
Billion SAR
1500
900
1000 800
700
500
600
0 500
2016 2017 2018 2019 2020
No. of transactions (left) Cash withdrawals (right)
Table 9.13: ATM Statistics
No. of transactions Cash withdrawals

No. of issued (Million) (Million SAR)
Year No. of ATMs
ATM cards
Mada Bank Total Mada Bank Total
2016 17,887 26,537,349 822 1,100 1,923 446,300 307,149 753,449
2017 18,333 28,402,914 870 1,142 2,012 440,729 287,782 728,511
2018 18,685 28,559,828 949 1,177 2,126 452,931 295,394 748,325
2019 18,882 31,540,067 983 1,142 2,125 468,849 271,791 740,640
2020 18,299 34,336,693 761 986 1,747 386,490 242,401 628,891
112
Banking Sector
986 million compared to a decline of 3.0 percent in III. Saudi Arabian Riyal Interbank
the preceding year. The value of cash withdrawals Express System (SARIE)
through these networks went down by 10.8 percent The total number of transactions executed via
to SAR 242.4 billion, compared to a decline of 8.0 SARIE went up by 26.8 percent to 201.6 million
percent in 2019. As a result, total cash withdrawals in 2020, compared to a rise of 17.1 percent in the
declined by 15.1 percent to SAR 628.9 billion (Table preceding year. A breakdown of SARIE transactions
9.13 and Chart 9.11). by single and bulk customer payments shows that
the number of single payments rose by 35.2 percent
The number of point of sale (POS) terminals went to 17.8 million transactions as opposed to their
up by 64.4 percent to 721,060 in 2020, compared to value that decreased by 0.3 percent to SAR 4,936
a rise of 24.7 percent in 2019. The number of sales billion. The number of bulk payments also went up
transactions executed through POS terminals rose by 26.4 percent to 181.0 million transactions and
by 75.8 percent to 2,853 million, compared to a their value by 15.1 percent to SAR 3,365 billion.
rise of 57.3 percent in the preceding year. The value
of these transactions also rose by 24.2 percent to A classification of SARIE transactions by interbank
SAR 357.3 billion, compared to an increase of 23.9 payments shows that the number of single
percent in the preceding year (Table 9.14 and Chart interbank transactions increased by 36.2 percent to
9.12). Higher growth rates in ATM cards and in ATM 854.2 thousand during 2020 and their value by 30.0
and POS transactions indicate their expansion in percent to SAR 52,199 billion. The number of bulk
the retail sector, in addition to customers’ increased interbank transactions executed through SARIE
confidence in modern banking technology. rose by 35.4 percent to 211.5 thousand, and their

Chart 9.12: POS Terminals and Transactions
No. of POS terminals POS transactions (monthly)

4000 40
38
800 3500 36
700 34
3000 32
600 30
2500 28
Thousands
500 Billion SAR

26
400 2000 24
1500 22
300 20
200 1000 18
16
100 500 14
0 12
0 10
2016 2017 2018 2019 2020
2016 2017 2018 2019 2020
No. of transactions (left) Sales (right)
Table 9.14: POS Statistics
Sales No. of transactions

Year No. of POS terminals
(Million SAR) (Million)
2016 182,749 525 267,827
2017 200,468 708 303,464
2018 232,306 1,032 351,645
2019 287,794 1,623 438,618
2020 357,298 2,853 721,060
113
value went up by 6.3 percent to SAR 148.6 billion In addition, the number of banks linked to SADAD
(Tables 9.15A and 9.15B and Chart 9.13). reached 16. The number of transactions executed
through SADAD during 2020 rose by 6.8 percent,
IV. SADAD totaling 267 million with a total value of SAR 450.4
The total numbe of billers from various billion, compared to a rise of 18.3 percent to 263.5
sectors (such as education, electricity, water, million transactions with a total value of SAR 421.8
communications, airline companies, insurance and billion in the preceding year (Chart 9.14).
credit cards) linked to SADAD stood at 146 at end-
2020.
Chart 9.14: Volume and Value of Bills Paid via

Chart 9.13: SARIE Transactions
SADAD
Total transactions of SARIE (monthly)
20.0 10000 500 280

18.0 9000 450 260
16.0 400 240
8000
14.0 350 220
7000
Billion SAR
200
Billion SAR
12.0 300
6000
10.0 180
5000 250
8.0 160
4000 200 140
6.0
3000 150 120
4.0
2000 100 100
2.0
1000
2016 2017 2018 2019 2020
0.0
2016 2017 2018 2019 2020
Value of bills paid via SADAD (left)
Number (left) Value (right) Volume of bills paid via SADAD (right)
Table 9.15A: Number of SARIE Transactions
(Thousand)
Customer payments Interbank payments Other Total

Period
Bulk Single Total (1) Bulk Single Total (2) (3) (1+2+3)
2016 76,084 9,156 85,240 79 468 547 3,497 89,285

2017 89,806 10,299 100,105 137 514 651 2,714 103,470
2018 122,236 10,676 132,912 122 513 635 2,218 135,766
2019 143,230 13,191 156,421 156 627 784 1,779 158,983
2020 181,026 17,828 198,854 212 854 1,066 1,687 201,607
Table 9.15B: Value of SARIE Transactions
(Billion SAR)
Customer payments Interbank payments Other* Total

Year
Bulk Single Total (1) Bulk Single Total (2) (3) (1+2+3)
2016 2,067 3,396 5,463 61.4 34,161 34,222 31 39,717

2017 2,180 3,839 6,019 80.1 56,048 56,128 42 62,189
2018 2,640 3,994 6,634 105.8 43,226 43,332 18 49,984
2019 2,924 4,953 7,877 139.8 40,157 40,297 37 48,211
2020 3,365 4,936 8,301 148.6 52,199 52,348 41 60,690

* Including direct debit transactions and SAMA’s claims on banks.
114
Banking Sector
Derivatives Market Activity the corporate sector at the GCC level, SIMAH
Derivatives transactions in Saudi Arabia rose by further developed SIMAT in 2020. It completed all
9.9 percent (SAR 112 billion) to SAR 1,245 billion technical requirements for the execution of the
in 2020, compared to SAR 1,133 billion in the GCC credit information linkage project to link credit
preceding year. information through the e-Government Program
“Yesser” in preparation for the actual launch in
2021.
Banking Creditworthiness
The Saudi Credit Bureau (SIMAH) continued to Developments in Implementation
improve its services and products, such as the retail of the Basel III Framework in Saudi
system “SIMATI” and the corporate system “SIMAT”, Arabia
that are provided to all relevant entities during SAMA has studied the final Basel III reforms (market,
2020. Through these services and products, SIMAH credit and operational risks as well as the leverage
provides necessary and accurate credit information ratio framework). It formed working groups with
that would contribute to enhancing risk analysis, the banking sector to assess the reforms’ impact
evaluating borrowers’ creditworthiness, reducing and provide feedback on such reforms and on
financial risk and developing the credit information their viability for promoting resilience of the
sector and its various services. With this in view, banking sector. The final standards were planned
SIMAH aims to expand the credit market in Saudi to be issued by SAMA for full implementation as
Arabia in alignment with the economic environment of January 1, 2022. However, the BCBS’s oversight
and Saudi Vision 2030. body, the Group of Central Bank Governors and
Heads of Supervision (GHOS), adopted a number of
Total credit reports issued by SIMATI for the retail measures during 2020 that included the deferral of
sector dropped by 36.7 percent to 12.3 million implementation of such reforms to January 1, 2023.
during 2020 from 19.5 million in 2019, due to
the repercussions of the COVID-19 pandemic. The purpose of deferral is to allow supervisory and
Conversely, total credit reports issued by SIMAT regulatory authorities and banks to have additional
for the Saudi market witnessed a notable increase operational capacity and greater flexibility to
of 19.8 percent to 81.0 thousand during 2020, up respond efficiently to the impacts of the COVID-19
from 67.6 thousand during 2019. In addition, total pandemic. Thus, SAMA has decided to adopt these
credit accounts in SIMAT rose by 2.9 percent to measures. The standards will be adopted and
1.802 million during 2020 from 1,751 million during applied domestically according to the date set by
2019. The total number of consumers (corporate the BCBS. It is noteworthy that such deferral will not
and establishment) from the business sector in affect the capital adequacy of the banking sector as
SIMAT increased by 2 percent to 798.5 thousand banks continue to implement the applicable Basel
during 2020 from 782.6 thousand during 2019. III standards.
In terms of technological advancement in 2020,

SIMAH continued to streamline and improve the
electronic linkage mechanism with the Ministry
of Justice (MOJ). Through this linkage, the MOJ
can obtain the information sufficient for settling
enforcement courts’ cases. In order to serve
115
10
INSURANCE
AND
FINANCE
The sector witnessed two successful mergers of

insurance companies in Saudi Arabia. To enhance
Insurance and Finance

quality in the insurance sector and eventually
serve customers in Saudi Arabia, SAMA adopted
a number of initiatives to build and improve the
capabilities of Saudi human resources working
Insurance Sector in the sector through training and development.
SAMA is keen on improving and developing every The following were the key developments of the
aspect that contributes to the growth of insurance insurance sector in 2020.
sector in order to achieve the objectives of Saudi
Vision 2030. Some of SAMA’s efforts in this I. Regulations of Insurance Sector and
respect include raising awareness of the social and Key Developments in 2020
economic importance of insurance and updating • SAMA issued the Standard Policy for Inherent
laws, regulations and instructions continuously Defects Insurance as part of its efforts and
to be in line with changes in the insurance the efforts of the Ministry of Municipal, Rural
sector and the economy. In this regard, SAMA Affairs and Housing to safeguard the insureds’
has studied and followed up the developments rights against any defects in construction works.
of COVID-19 pandemic and the precautionary The policy specifies the minimum coverage and
measures taken by Saudi Arabia for the insurance exceptions related to inherent defects, and it
sector. It has also studied the impact of such covers the cost of repairing physical damage of
measures on the stability of the sector. Through insured buildings and damage resulting from
continuous monitoring and early stress testing of an inherent defect for a period of ten years.
the insurance sector, SAMA has ensured that cash • SAMA issued the instructions for Phase 3
flows and other financial soundness indicators are ‘Implementation Plan’ for implementing
not affected by the pandemic. Moreover, SAMA IFRS 17 on Insurance Contracts in October
launched a number of initiatives to reduce the 2020. IFRS 17 is an accounting standard that
effects of the pandemic on the insurance sector, will provide more accurate, transparent and
the most prominent of which was extending quality information to users of the financial
retail motor insurance policies for a period of two statements of insurance companies. Phase
months without charging any additional costs. 3 comes as part of four phases, two of which
It also directed insurance companies to make were completed: ‘Gap Analysis’ and ‘Financial
sufficient technical provisions for health claims Impact Assessment.’ Work will be carried out
resulting from postponing health services to post- on Phase 4 ‘Implementation and Dry-Run’ after
curfew period. Phase 3 is completed.
• SAMA issued the Rules Governing Insurance
For the purpose of developing the insurance Aggregation Activities, which set out the
sector and bolstering its capabilities to face risks minimum requirements and controls necessary
and keep up with the economic growth of Saudi for granting the license to carry out online
Arabia, SAMA is encouraging insurance companies insurance aggregation activities in Saudi
to increase their capital through mergers and Arabia, in addition to the rules concerning the
acquisitions. Mergers contribute to enhancing relationship between insurance aggregators
the competitiveness of the insurance sector by and insurance companies. These rules aim
creating large competitive insurance entities. to facilitate insurance for policyholders by
118
delivering products to a larger group through procedures and requirements necessary
affordable insurance services. before marketing products or selling insurance
• In continuation of its efforts to enhance products to customers. They also aim to
financial inclusion and insurance awareness enhance the efficiency of risk management
among customers, SAMA issued the Rules related to insurance products and to ensure the
Governing Bancassurance Activities. The rules quality of their design, their development, the
are aimed at facilitating access for customers to assessment of their risks and performance, and
all their financial services needed at one place their compliance with regulatory requirements.
and to savings products. These bancassurance For the purpose of promoting innovation in
activities ensure that insurance products reach insurance products, the option of “Insurance
remote regions. Product Filed with SAMA under File & Use
• In order to regulate the contractual Procedures” was developed.
relationship between finance companies • A number of detailed circulars were
and their retail customers with regard to communicated, with the aim of supporting the
insurance of financially leased motor vehicles, stability and growth of the insurance sector
SAMA issued the Rules for Comprehensive while ensuring the soundness of its practices.
Insurance of Motor Vehicles Financially
Leased to Individuals. The rules aim to protect II. Saudization in the Insurance Sector
the rights of insurance policyholders and Article 2 of the Implementing Regulations of the
ensure fair services. They set out the rights Cooperative Insurance Companies Control Law
and obligations of insureds (the lessor and states that a key objective of the Law and its
the lessee) that come as part of the finance Regulations is to develop the insurance sector
leasing contract for individuals’ vehicles. They in Saudi Arabia, including through training and
also specify how to calculate the amount of Saudization. Furthermore, Article 4 states that the
annual premium after applying the no-claim business plan prepared by insurance companies
discount that encourages individuals to adopt and insurance service providers must specify,
safer driving attitudes. This discount comes among others, the expected number of employees
in addition to other discounts indicated in and include a plan for recruiting and training Saudis.
SAMA’s instructions.
• SAMA issued the Actuarial Work Rules for In addition, Article 50 emphasizes that insurance
Insurance, which support the growth of companies and insurance service providers must
the actuarial profession, ensure effective provide SAMA, 45 days prior to the end of each
participation of actuaries in the enhancement fiscal year, with a report specifying the number,
of financial resilience of the insurance percentage and positions of Saudi employees at
sector, and develop and regulate actuaries’ the company level and at each branch and/or
performance. Thus, the insurance industry will department level. Article 79 stipulates that “Saudi
be positively affected and will be able to meet employees shall not be less than 30 percent at
the market needs and keep up with economic the end of the first year, and this percentage shall
expansions. increase annually according to a Saudization plan
• SAMA issued the Rules of Insurance Products submitted to SAMA.”
Approval, which represent a qualitative shift
in terms of approval of insurance products. In this context, the total number of employees at
These rules aim to determine the regulatory insurance companies stood at 11,015 at the end
119
of 2020 compared to 11,213 at the end of 2019, IV. Insurance Market in Saudi Arabia in
with Saudi employees accounting for 75 percent 2020
of the total number of employees at end-2020 A. Overall Market Performance
compared to 74 percent at end-2019. The total • The insurance market witnessed an increase of
number of employees working with insurance 2.3 percent in gross written premiums (GWP)
service providers reached 6,139 at the end of to SAR 38.7 billion in 2020 compared to an
2020, compared to 5,854 at the end of 2019, as increase of 8.2 percent in 2019 (Table 10.1).
Saudi employees accounted for 74 percent of total • Health insurance GWP, which represented
employees at end-2020 against 71 percent at end- 59 percent of the total GWP, increased by 1.6
2019. percent to SAR 22.8 billion at the end of 2020
compared to a rise of 13 percent in 2019.
III. Training • Total general insurance GWP, which represented
SAMA adopted a number of initiatives to build and 38 percent of the total GWP, increased by 2.8
improve the capabilities of Saudi human resources percent to SAR 14.6 billion at the end of 2020
working in the insurance sector. These initiatives compared to a rise of 1.8 percent in 2019.
included short and long training courses, on-job Motor insurance GWP, which represented 56.9
training, domestic and international workshops, and percent of the total general insurance GWP,
professional certification in the field of insurance. dropped by 2.9 percent to SAR 8.3 billion at
Such initiatives aimed to enhance the quality of the end of 2020 compared to a decline of 8.7
the insurance industry, increase fair competition percent in 2019.
among companies, promote growth and stability of • Protection and savings insurance GWP, which
the sector, and reduce potential risks. represented 3.3 percent of the total GWP, went
up by 11.3 percent to SAR 1.2 billion at the end
SAMA continued its effort to regulate the insurance of 2020 compared to an increase of 2.9 percent
sector and urge companies and their employees to in 2019.
be professional and practice insurance business on
a technical and methodological basis pursuant to B. Net Written Premiums (NWP)
its rules, regulations and instructions. In support NWP is defined as the gross written premiums
of this effort, SAMA updated the Insurance less the share of reinsurance. Health and motor
Fundamentals Certificate Exam (IFCE) to keep pace insurance accounted for 68.5 percent and 24.3
with the key regulatory developments, professional percent, respectively, of total NWP in 2020.
practices and products in the insurance industry in Total health insurance NWP grew by 1.4 percent,
Saudi Arabia. while motor insurance NWP recorded a fall of 4.4
percent. Total marine insurance NWP dropped
Moreover, SAMA launched the second version of by 2.5 percent. Other insurance types recorded
the Advanced Diploma in Insurance (ACII), which annual increases compared to 2019. Aviation
aims to enable participants to acquire technical insurance registered the highest increase of 115.6
skills in different insurance areas through the percent, followed by engineering insurance with
opportunity to obtain professional certificates in 64 percent and energy insurance with 32.5 percent
the field of insurance. The program extends for (Table 10.1).
two and a half years and consists of two levels: the
Diploma in Insurance and the Advanced Diploma in C. Retention Ratio
Insurance. The retention ratio is a measure of risks in written
120
premiums retained by an insurance company. 1.9 percent in 2020 (Table 10.1).
There is a positive relationship between the
retention ratio and risks. The ratio is calculated by D. Insurance Market Penetration and
dividing NWP by GWP. The overall retention ratio Density
of insurance companies in the Saudi insurance Insurance penetration is measured by the ratio
market was 82.5 percent in 2020, compared to of gross written premiums to GDP. The level of
83.6 percent in 2019. This ratio is largely affected insurance penetration in Saudi Arabia stood at
by the high retention ratio for motor and health 1.48 percent in 2020 against 1.27 percent in 2019,
insurance, which accounted for 93 percent and 96 with GWP to Non-oil GDP ratio amounting to 1.92
percent, respectively. On the other hand, energy percent in 2020 against 1.87 percent in 2019
insurance recorded the lowest retention ratio of (Table 10.2).
Table 10.1: Insurance Indicators
2018 2019 2020

Insurance
GWP NWP NWP/GWP GWP NWP NWP/GWP GWP NWP NWP/GWP
type (Million Share (Million (retention (Million Share (Million (retention (Million Share (Million (retention
SAR) SAR) ratio) SAR) SAR) ratio) SAR) SAR) ratio)
Accident,
liability
& other
1,001.3 2.9 470.4 47.0 1,121.4 3.0 486.6 43.4 1,369.9 3.5 637.2 46.5
insurance
Motor
insurance
9,423.3 26.9 8,860.4 94.0 8,603.6 22.7 8,117.1 94.3 8,358.0 21.6 7,763.5 92.9
Property/
fire 1,697.9 4.8 314.0 18.5 1,844.6 4.9 314.6 17.1 2,109.2 5.4 362.7 17.2
insurance
Marine
insurance
544.6 1.6 155.4 28.5 653.6 1.7 181.2 27.7 690.0 1.8 176.6 25.6
Aviation
insurance
148.0 0.4 5.3 3.6 158.5 0.4 4.0 2.5 178.6 0.5 8.7 4.9
Energy
insurance
511.5 1.5 3.5 0.7 700.4 1.8 12.8 1.8 910.8 2.3 16.9 1.9
Engineering
insurance
701.7 2.0 120.2 17.1 1,198.4 3.2 144.2 12.0 1,061.8 2.7 236.5 22.3
Total
general 14,028.4 40.1 9,929.2 70.8 14,280.7 37.7 9,260.6 64.8 14,678.3 37.9 9,202.2 62.7
insurance
Total health
insurance
19,883.4 56.8 19,319.4 97.2 22,474.9 59.3 21,622.0 96.2 22,836.8 58.9 21,924.7 96.0
Total
protection
& savings
1,102.7 3.1 794.8 -- 1,134.9 3.0 797.2 -- 1,263.6 3.3 859.4 --
insurance
Total 35,014.5 100.0 30,043.4 85.8 37,890.5 100.0 31,679.7 83.6 38,778.7 100.0 31,986.3 82.5
* Retention ratios for protection & savings insurance are not included because the savings component included in Saudi companies’ contracts
should be retained; therefore, retention ratios of this insurance type cannot be compared to other types of insurance.
Table 10.2: Insurance Penetration to GDP
)Percentage(
2018 2019 2020 Change
Insurance type Non-oil Non-oil Non-oil Non-oil
GDP GDP GDP GDP
GDP GDP GDP GDP
Total general insurance 0.48 0.73 0.48 0.70 0.56 0.73 16.4 3.2
Total health insurance 0.68 1.03 0.76 1.10 0.87 1.13 15.1 3.1
Total protection & savings

0.04 0.06 0.04 0.06 0.05 0.06 26.1 11.8
insurance
Total 1.19 1.82 1.27 1.87 1.48 1.92 15.9 3.8
121
Insurance density is defined as per capita F. Total Claims Paid by Insurance Type
expenditure on insurance (GWP divided by the Total claims paid in 2020 decreased by 5.4 percent
total population). The per capita insurance density to SAR 26.9 billion compared to SAR 28.4 billion in
decreased by 1.1 percent from SAR 1,107.3 in 2019 2019. Health and motor insurance claims accounted
to SAR 1,094.8 in 2020 (Table 10.3). for 69.4 percent and 20.4 percent, respectively, of
total claims paid in 2020. These high ratios reflected
E. Commissions Paid to Insurance the high shares of these types of insurance in the
Brokers and Agents total market premiums. Accident, liability and other
The amount of commissions paid by insurance insurance recorded the highest growth rate of total
companies to insurance brokers and agents totaled claims paid with a rise of 26.9 percent in 2020,
SAR 2.27 billion in 2020, compared to SAR 1.76 followed by protection and savings insurance with
billion in 2019. Motor insurance commissions 12.7 percent and health insurance with 0.7 percent.
constituted 24.7 percent of total commissions paid However, other types of insurance recorded annual
in 2020, compared to 29.5 percent in 2019, while decreases in total claims paid, with the aviation
those of health insurance accounted for 52 percent insurance registering the highest decline of 67.1
of total commissions paid in 2020, compared to percent (Table 10.5).
43.6 percent in 2019 (Table 10.4).
Table 10.3: Insurance Market Density

)Riyals per capita(
Insurance type 2015 2016 2017 2018 2019 2020 Change
Total general insurance 536.03 540.26 501.58 419.84 417.34 414.42 -0.7
Total health insurance 616.40 586.09 584.77 595.07 656.82 644.76 -1.8
Total protection & savings insurance 33.66 33.08 35.03 33.00 33.17 35.68 7.6
Total 1,186.08 1,159.43 1,121.37 1,047.91 1,107.33 1,094.85 -1.1
Table 10.4: Commissions Paid by Type of Business
2018 2019 2020 Change

Insurance type Million Million Million
Percentage Percentage Percentage 2019-2020
SAR SAR SAR
Accident & Liability insurance 86.3 6.15 119.5 6.77 141.6 6.20 18.50
Motor insurance 502.6 35.83 521.1 29.55 560.2 24.70 7.50
Property/fire insurance 103.6 7.39 169.4 9.61 156.6 6.90 -7.60
Marine insurance 35.9 2.56 58.1 3.29 64.0 2.80 10.30
Aviation insurance 1.3 0.09 2.0 0.11 2.8 0.10 38.60
Energy insurance 1.2 0.08 5.5 0.31 9.5 0.40 71.70
Engineering insurance 36.6 2.61 65.5 3.72 81.9 3.60 25.00
Total general insurance 767.6 54.72 941.1 53.37 1,016.6 44.80 8.00
Total health insurance 615.8 43.90 769.7 43.64 1,180.7 52.00 53.40
Total protection & savings
19.4 1.38 52.7 2.99 73.9 3.30 40.00
insurance
Total 1,402.8 100.00 1,763.5 100.00 2,271.2 100.00 28.80
122
V. Status of Insurance Companies in of companies and establishments providing health
Saudi Arabia insurance coverage for their staff was 527,441.
The number of insurance and reinsurance The number of insurance companies licensed to
companies approved by the Council of Ministers provide health insurance stood at 25, while the
until the end of 2020 was 32 (Table 10.6). The Saudi companies licensed to manage health insurance
insurance sector witnessed two successful mergers claims were six. Moreover, the number of approved
of insurance companies in 2020 and the signing health care providers in Saudi Arabia reached 5,804
of memoranda of understanding to consider at the end of 2020, classified by type of facility and
mergers of other insurance companies. Mergers administrative region as shown in (Table 10.7).
are expected to increase in the coming period.
They contribute to enhancing the competitiveness A review of approved health care providers in Saudi
of the insurance sector through the establishment Arabia for 2020 indicates that pharmacies ranked
of large competitive insurance entities. They first among facilities providing health care services,
would also buttress the financial position of the constituting 53.6 percent of the total. Polyclinic
insurance sector to safeguard the rights of the centers came second with 22.2 percent, followed
insureds, improve the quality of services provided by optical shops with 15.9 percent and hospitals
for customers, reduce costs, enhance efficiency with 5.7 percent. A review of health care providers
and diversify products offered, in addition to other by administrative region indicates that Riyadh
positive effects. region ranked first with 32.4 percent of the total,
followed by Makkah region with 23.9 percent and
VI. Council of Cooperative Health the Eastern Region with 18.2 percent.
Insurance
The total number of individuals with health
insurance reached 10.4 million, including 6.7
million expatriates, at the end of 2020. The number
Table 10.5: Total Claims Paid by Type of Business
2018 2019 2020 Change

Insurance type Million Million Million
Percentage Percentage Percentage 2019-2020
SAR SAR SAR
Accident & Liability insurance 263.3 0.97 265.2 0.93 336.5 1.30 26.90
Motor insurance 6,929.8 25.44 6,507.0 22.87 5,478.6 20.40 -15.80
Property/fire insurance 624.4 2.29 699.1 2.46 303.3 1.10 -56.60
Marine insurance 223.7 0.82 444.3 1.56 269.2 1.00 -39.40
Aviation insurance 123.8 0.45 84.8 0.30 27.9 0.10 -67.10
Energy insurance 356.8 1.31 1,048.5 3.69 909.9 3.40 -13.20
Engineering insurance 456.8 1.68 284.6 1.00 267.3 1.00 -6.10
Total general insurance 8,978.6 32.96 9,333.5 32.80 7,592.7 28.20 -18.70
Total health insurance 17,628.9 64.72 18,540.9 65.16 18,664.6 69.40 0.70
Total protection & savings insurance 629.3 2.31 578.8 2.03 652.2 2.40 12.70
Total 27,236.8 100.00 28,453.2 100.00 26,909.5 100.00 -5.40
123
Table 10.6: Licensed Insurance and Reinsurance Companies Up to the End of 2020
Capital
Name Licensed on
(Million SAR)
National Company for Cooperative Insurance (NCCI) 1,250 02/12/2004
Malath Cooperative Insurance & Reinsurance Company 500 11/09/2007
The Mediterranean & Gulf Cooperative Insurance & Reinsurance (MEDGULF) 800 11/09/2007
Salama Cooperative Insurance Company 250 11/09/2007
SABB Takaful 340 11/09/2007
Arabian Shield Cooperative Insurance 300 11/09/2007
AlAhli Takaful Company 166 11/09/2007
Saudi Arabian Cooperative Insurance Company (SAICO) 300 11/09/2007
Gulf Union Cooperative Insurance Company 229 11/09/2007
Sanad for Cooperative Insurance & Reinsurance (SANAD) 200 08/03/2008
Allianz Saudi Fransi 600 08/03/2008
Al-Etihad Cooperative Insurance Company ( PLC) 400 31/03/2008
Al Sagr Cooperative Insurance Company 400 31/03/2008
Saudi Indian Company for Cooperative Insurance 100 10/06/2008
Arabia Insurance Cooperative Company (AICC) 265 18/06/2008
Walaa Cooperative Insurance Company 646 02/07/2008
Saudi Reinsurance Company (Saudi Re) 810 21/07/2008
Bupa Arabia for Cooperative Insurance 1,200 10/08/2008
United Cooperative Assurance (UCA) 400 30/12/2008
Allied Cooperative Insurance Group (ACIG) 141 10/05/2009
Al-Rajhi Company for Cooperative Insurance (Al-Rajhi Takaful) 400 17/11/2009
Chubb Arabia Cooperative Insurance Company 200 08/12/2009
Al-Alamiya Cooperative Insurance Company 400 13/12/2009
AXA Cooperative Insurance Company 500 26/01/2010
Gulf General Cooperative Insurance Company 200 06/03/2010
Buruj Cooperative Insurance Company 300 29/05/2010
National Insurance Company (NIC) 200 16/06/2010
AMANA Cooperative Insurance Company 240 06/07/2010
Solidarity Saudi Takaful Company 250 20/03/2011
Saudi Enaya Cooperative Insurance Company 150 07/08/2011
Alinma Tokio Marine Company 300 30/09/2012
Aljazira Takaful Company 350 18/12/2013
124
Table 10.7: Authorized Healthcare Providers in 2020
Care & rehabilitation centers for

operation centers) + specialized
Hearing aid centers for persons

Devices & prosthetics stores
Region/Type of institutions
polyclinic centers (one-day

Polyclinic centers (one-day
Main centers of Saudi Red

Speech & hearing centers
persons with disabilities

Physical therapy centers
with hearing disabilities

Psychotherapy centers
One-physician clinics
Medical laboratories
Medical complexes
Prosthetics centers
Crescent Authority
operation centers)
Nutrition centers
Dialysis centers
Optical stores
X-ray centers
Dispensaries
Pharmacies
Hospitals
Others
Total
Riyadh 77 13 414 0 2 16 4 952 387 0 3 0 1 5 0 2 4 1 0 1 1,882
Makkah 76 8 352 1 3 9 4 758 160 0 5 1 0 5 1 0 2 1 0 0 1,386
Eastern
60 7 221 1 1 16 2 577 164 0 4 0 0 0 0 0 0 1 0 0 1,054
Region
Asir 27 4 62 0 0 1 0 197 43 0 0 0 0 0 0 0 0 1 0 0 335
Madinah 20 3 47 0 0 0 0 148 65 0 0 1 0 0 0 2 0 1 0 0 287
Qassim 12 2 40 0 0 2 0 89 32 0 0 0 0 0 0 0 0 1 0 0 178
Tabuk 10 0 29 0 0 0 0 87 21 0 0 0 0 0 0 0 0 1 0 0 148
Najran 9 0 29 0 0 0 0 38 11 0 0 0 0 0 0 0 0 1 0 0 88
Jazan 13 0 36 0 0 1 0 83 18 0 2 0 0 0 0 0 0 1 0 0 154
Northern
Borders 8 0 12 0 0 0 0 40 2 0 0 0 0 0 0 0 0 1 0 0 63
Region
Jawf 6 0 14 0 0 0 0 50 3 0 0 0 0 0 0 0 0 1 0 0 74
Ha’il 10 0 21 0 0 0 0 63 8 0 0 0 0 0 0 0 0 1 0 0 103
Baha 5 1 12 0 0 0 0 27 6 0 0 0 0 0 0 0 0 1 0 0 52
Total 333 38 1,289 2 6 45 10 3,109 920 0 14 2 1 10 1 4 6 13 0 1 5,804
Source: Council of Cooperative Health Insurance.
125
Finance Sector Companies Regulations, and the regulations for

SAMA is entrusted with regulatory and finance lease contract registration specifying
supervisory functions over the finance sector the data required for the register and the
in Saudi Arabia, taking the actions necessary to controls for third-party access to the contract
maintain its soundness and stability and protect register. The total number of finance-related
its workers and clients’ rights. These actions rules and regulations published on SAMA’s
proved their effectiveness in facing the impact of website until the end of 2020 reached 39.
COVID-19 pandemic. They included launching a • SAMA issued 28 circulars covering a number
number of financing programs supporting small of subjects related to the business of finance
and medium-sized enterprises (SMEs). Moreover, companies in 2020. Some of these circulars
SAMA performs its role in enhancing financial were a circular on amending some articles in
stability, developing regulatory and supervisory the Implementing Regulations of the Finance
frameworks of this sector, ensuring fair Lease Law, a circular regarding the digital
transactions for all stakeholders and supporting certification of products for customers of
sustainable economic growth. finance companies, and a circular regarding
adherence to the standard motor finance lease
SAMA is also responsible for issuing licenses to contract for individuals. SAMA’s circulars aim to
practice finance activities in accordance with protect customers’ rights, advance the finance
finance laws and regulations. The following are the sector and maintain its stability.
key developments regarding finance companies • A real estate finance company was floated
infrastructure, supervisory and control functions, on the Main Market (TASI) as the first finance
and customer right protection. company to be listed.
I. Key Developments and Regulations SAMA has been keen to activate all communication
in the Finance Sector in 2020 platforms with international organizations in
The key developments in SAMA’s work to advance the field of supervision and control to adopt
the non-banking finance sector during 2020 were international best practices and standards. SAMA
as follows: also participated in several cooperative programs
• The Risk-Based Supervision Project for Finance with international bodies and organizations,
Companies was completed. The project is including the international cooperation through
aimed at directing resources toward high-risk joint committees for developing the finance sector,
activities. the cooperation with the World Bank on Islamic
• Regarding SAMA’s supervisory and regulatory finance research, and the cooperation with the IMF
role, a number of rules and instructions were regarding potential changes in SAIBOR and LIBOR.
issued in 2020. Some of them were the Rules In addition, SAMA participated in a report on small
on Credit Risk Classification and Provisioning and medium-sized enterprises and issued rules and
for finance companies, the Rules for Engaging reports on refinance companies.
in Debt-Based Crowdfunding, the Rules for
Licensing Finance Support Activities, the Regarding finance lease registration, SAMA
updated standard real estate finance contract encouraged creating an integrated regulatory
forms for individuals (Murabaha and Ijara), environment for the finance business. It also
the standard motor finance leasing contract supported all initiatives and projects toward the
for individuals, the Deposit-Taking Finance development of frameworks and regulations that
126
ensure the protection of customers’ rights. In this other types of finance stood at 30 (Table 10.8). It is
regard, the number of licensed companies engaged worth mentioning that SAMA made one licensing
in registration of finance lease contracts in Saudi visit, 42 supervisory visits, and 141 inspection
Arabia increased to two. In addition, SAMA issued visits during 2020.
regulations for finance lease contract registration,
which specify the data required for the register and The total assets of finance companies reached SAR
the controls for third-party access to the contract 45.5 billion at the end of 2020, compared to SAR
register. 38.4 billion in 2019. The finance portfolio for the
sector totaled around SAR 54.1 billion at the end
As a member in the Housing Program and the of 2020 as compared to SAR 49.3 billion at the end
regulator and observer of the real estate finance of 2019. Real estate finance accounted for 43.5
sector, SAMA contributes to the Saudi Vision 2030 percent of the total finance portfolio. The total
through developing the legislative and regulatory capital of all of the finance companies reached SAR
environment for the real estate finance. In 2020, 14.6 billion (Table 10.8).
SAMA updated the standard real estate finance
contract forms (Ijara and Murabaha), licensed In terms of employment and Saudization, the total
the first finance support company and issued number of employees at finance companies in Saudi
instructions about self-build mortgage products Arabia reached 5,527 at the end of 2020, compared
for individuals. SAMA also agreed to extend the to 5,489 employees at the end of 2019. Saudi
additional working hours to Saturday to serve employees constituted 82.7 percent of the total.
subsidized real estate finance customers until the
end of 2021. During 2020, the total number of
residential real estate finance contracts concluded
by banks and real estate finance companies reached
295.6 thousand, with a growth rate of 65 percent
compared to 179.2 thousand contracts in 2019.
The value of residential real estate finance granted
by banks and real estate finance companies in 2020
exceeded SAR 140.7 billion, growing by 77 percent,
compared to SAR 79.6 billion in 2019.
II. Finance Companies Licensed to

Operate in Saudi Arabia
The number of licensed finance companies
stood at 42 in 2020 with six real estate finance
companies, one real estate refinance company,
and one microfinance company. The number of
licensed contract registration companies increased
during the year to two companies. In addition, for
the first time, one company was licensed to engage
in debt collection for finance entities, and another
company was licensed to engage in consumer
microfinance. The number of companies offering
127
Table 10.8: Companies Licensed to Practice Finance Activities Up to the End of 2020
Paid-up capital
Name Licensed on
(Million SAR)
Companies licensed to provide real estate finance
1 Amlak International for Real Estate Finance 906 24/12/2013
2 Dar Al Tamleek 359 31/12/2013
3 Saudi Home Loans (SHL) 1,000 27/02/2014
4 Deutsche Gulf Finance 575 20/05/2014
5 Abdul Latif Jameel for Real Estate Finance 250 07/12/2014
6 Bidaya Home Finance 900 14/12/2015
Companies licensed to provide real estate refinance
1 Saudi Real Estate Refinance Company 1,500 25/09/2017
Companies licensed to provide micro-business finance
1 Bab Rizq Jameel Microfinance 100 04/10/2017
Companies Licensed to Register Finance Contracts
1 Saudi Finance Lease Registration Company (Sijil) 38 28/12/2017
2 Tawtheeq Finance Lease Registration Company 10 26/04/2020
Finance debt collection service providers
1 National Financing Servicing Company (NFSC) 80 08/03/2020
Consumer microfinance companies
1 Tamam Financing Company 20 30/12/2020
Companies licensed to practice finance activities other than the aforementioned activities
1 Nayifat Finance Company 1,000 31/12/2013
2 YANAL Finance Company (formerly known as Saudi ORIX Leasing Company) 550 27/02/2014
3 Al Yusr Leasing & Financing 500 27/02/2014
4 AJIL Financial Services Company 500 20/05/2014
5 National Finance Company 250 25/05/2014
6 Morabaha Marina Company 281 14/09/2014
7 AlJasriah Co. for Finance LLC. 150 16/11/2014
8 Matager Finance Company 150 16/11/2014
9 Saudi Finance Company 100 20/11/2014
10 Abdul Latif Jameel Real Estate Finance 1,000 08/12/2014
11 Gulf Finance Saudi Arabia 100 08/12/2014
12 Alamthal Financing 313 16/03/2015
13 Osoul Modern Finance Company 100 22/03/2015
14 Dar Aletiman Al Saudi Finance Company 100 05/05/2015
15 Tawkelat Financing Company 100 04/06/2015
16 Ijarah Finance Company 200 31/08/2015
17 Tayseer Arabian Company 400 30/08/2015
18 Saudi Fransi for Finance & Leasing (SFL) 500 18/11/2015
19 Tamweel Al-Oula 250 03/12/2015
20 American Express Saudi Arabia 100 10/12/2015
21 Aljabr Financing Company 345 14/12/2015
22 AlRaedah Finance Company 150 09/02/2016
23 Raya Financing Company 150 23/03/2016
24 Quara Holding Company 300 09/05/2016
25 Taajeer Finance Company 200 29/11/2016
26 Gulf Lifting Financial Leasing Company 100 06/08/2017
27 United Company for Financial Services (Tas'heel Finance) 350 01/05/2019
28 Emkan Finance Company 500 12/04/2020
29 Tamwily International Company -- 11/12/2014
30 Own Financing Company 100 23/10/2019
128
11
CAPITAL
MARKET
bringing the total to 203 companies on the Main

Market and four companies on Nomu by the end
Capital Market of 2020. Moreover, CMA approved the transfer of

three companies from Nomu to the Main Market.
The Saudi capital market is regulated and Compared to 2019, the Tadawul All Share Index
supervised by the Capital Market Authority (TASI) increased by 3.6 percent in 2020 despite the
(CMA). In 2020, CMA, in cooperation with several economic impact of the COVID-19 pandemic. The
financial bodies, including the Saudi Central Bank number of traded shares also jumped by 134.7
(SAMA), took many actions aiming at further percent. Moreover, the total domestic assets of
developing the financial sector. These actions investment funds rose by 12.1 percent (SAR 16.1
coincided with the COVID-19 pandemic, which has billion) to SAR 149.6 billion at the end of 2020.
affected financial markets all over the world, and
the Saudi financial market has been no exception. Saudi Stock Market Developments
CMA also strengthened procedures to further Main Market Developments
reduce risks related to securities transactions In terms of the Main Market Index in 2020, TASI
resulting from the pandemic, protect investors closed at 8,689.5 at the end of 2020, compared
from unfair practices and ensure fairness and to 8,389.2 at the end of 2019, increasing by 3.6
transparency in securities transactions. In percent. It registered its highest closing point of
addition, CMA introduced several initiatives 8,760.0 on December 30. The market capitalization
under the Financial Leadership Program (FLP) and of issued shares increased by 0.8 percent from SAR
the Financial Sector Development Program (FSDP) 9,025.4 billion at the end of 2019 to SAR 9,101.8
with the aim of solidifying the position of the billion at the end of 2020.
Saudi capital market as the main market in the
Middle East and one of the world’s top ten capital The number of shares traded during 2020 surged
markets. In order to raise investment awareness, by 134.7 percent to 79.3 billion from 33.8 billion
CMA continued to carry out many financial in the preceding year. The total value of shares
awareness and literacy campaigns through traded also jumped by 137.2 percent to SAR
media and awareness activities and programs. 2,087.8 billion from SAR 880.1 billion in 2019. In
With a view to strengthening the position of the addition, the number of transactions witnessed a
Saudi capital market, the Saudi Stock Exchange notable increase of 170.1 percent to 76.7 million
(Tadawul), in cooperation with CMA, launched compared to 28.4 million in the preceding year
in 2020 a new market for derivatives in Saudi (Table 11.1).
Arabia. The launch of the derivatives market is
one of the most important pillars of the financial The daily average value of traded shares was SAR
market development plan under the FSDP. 8.3 billion in 2020, compared to SAR 3.5 billion in
the preceding year. The daily average number of
In 2020, CMA approved the initial public offering traded shares rose dramatically by 133.4 percent
of four companies operating in health care to 316.0 million from 135.4 million in 2019. The
equipment and services, banks, food and staples daily average number of transactions executed
retailing, and real estate management and went up by 169.0 percent to 305.5 thousand from
development. These companies were listed on 113.6 thousand in the preceding year.
the Main Market and the Parallel Market (Nomu),
130
Capital Market
Parallel Market Developments percent to SAR 7.1 billion from SAR 2.3 billion in
The Parallel Market (Nomu) Index closed at 2019. In addition, the number of transactions rose
26,245.5 at the end of 2020 against 7,179.2 at significantly by 107.6 percent to 287.5 thousand
the end of 2019, increasing significantly by 265.6 compared to 138.5 thousand in the preceding year
percent. It registered its highest closing point (Table 11.2).
of 26,245.5 on December 31, 2020. The market
capitalization of issued shares increased by SAR 9.6 The daily value of shares traded on Nomu averaged
billion to SAR 12.2 billion at the end of 2020. SAR 28.3 million in 2020 against SAR 9.1 million in
2019, surging by 210.8 percent. The daily average
The number of Nomu Index shares traded during number of traded shares also went up by 33.7
2020 went up by 34.2 percent to 108.6 million percent to 432.8 thousand in 2020 from 323.8
from 80.9 million in the preceding year. The total thousand in 2019. Similarly, the daily number of
value of traded shares also jumped by 212.0 transactions averaged 1,145.4 in 2020 against 554.0
Table 11.1: Saudi Stock Main Market Indicators
Market
Value of
No. of shares capitalization No. of
shares
Year traded* Change Change of issued Change trades Change TASI Change
traded
(million shares) shares (thousand)
(billion SAR)
(billion SAR)
2015 65,995.9 -6.5 1,660.6 -22.6 1,579.1 -12.9 30,444.2 -14.9 6,911.8 -17.1
2016 67,729.2 2.6 1,157.0 -30.3 1,682.0 6.5 27,273.7 -10.4 7,210.4 4.3
2017 43,297.9 -36.1 836.3 -27.7 1,689.6 0.5 21,895.3 -19.7 7,226.3 0.2
2018 37,820.2 -12.7 870.9 4.1 1,859.0 10.0 25,011.9 14.2 7,826.7 8.3
2019 33,800.8 -10.6 880.1 1.1 9,025.4 385.5 28,395.8 13.5 8,389.2 7.2
2020 79,323.7 134.7 2,087.8 137.2 9,101.8 0.8 76,686.3 170.1 8,689.5 3.6
*Data were adjusted to account for corporate actions.
Source: Saudi Stock Exchange (Tadawul).
Table 11.2: Saudi Parallel Market (Nomu) Indicators
Market
Value of
No. of capitalization
shares No. of trades
Year shares Change Change of issued Change Change TASI Change
traded (thousand)
traded* shares
(million SAR)
(billion SAR)
2019 80,938,145 211.7 2,279.8 452.7 2.5 9.3 138.5 228.6 7,179.2 184.8
2020 108,641,912 34.2 7,114.0 212.0 12.2 379.2 287.5 107.6 26,245.5 265.6
Table 11.3: Number of Investors and Portfolios Registered in Tadawul

)End of year(
No. of investors registered No. of portfolios registered in
Year Change Change
in Tadawul Tadawul
2017 4,675,535 1.3 9,378,957 4.3
2018 4,741,870 1.4 9,844,247 5.0
2019 5,485,716 15.7 9,891,677 0.5
2020 5,596,266 2.0 9,065,693 -8.4

131
in the preceding year, increasing by 106.8 percent. Regarding the three most active companies in
The number of investors registered in Tadawul by the terms of the number of transactions executed in
end of 2020 increased by 2.0 percent to 5.6 million. 2020, Saudi Aramco took the lead with 2.1 million,
On the other hand, the number of investment followed by Dar Al-Arkan with 1.8 million and then
portfolios registered in Tadawul decreased by 8.4 Alinma Bank with 1.7 million. In terms of the value
percent to 9.1 million (Table 11.3). of shares traded, SABIC led the market with SAR
300.3 billion, followed by Al Rajhi Bank with SAR
Stock Market Developments by Most 83.5 billion and Saudi Aramco with SAR 66.4 billion.
Active Sectors and Companies As for the number of shares traded, Dar Al-Arkan
A sectoral review of the activity of the Main Market topped the list with 6.5 billion, followed by Alinma
during 2020 indicates that the materials sector was Bank and SABIC with a volume of 4.1 billion and 2.6
the most active in terms of the number of shares billion, respectively (Table 11.5).
traded, amounting to 18.6 billion and representing
23.4 percent of the total volume traded. Banks came An analysis of the activity of the Parallel Market
second with 10.09 billion (12.73 percent of the (Nomu) by sector during 2020 indicates that real
total). Real estate management and development estate management and development came first
came close behind in third place with 10.08 billion in terms of the number of shares traded with 25.7
(12.72 percent of the total). million, representing 23.7 percent of the total
number of shares traded. With regard to the value
In terms of the value of shares traded, materials of shares traded on Nomu, consumer services
ranked first with SAR 612.2 billion, representing ranked first with SAR 2.6 billion, representing 37.1
29.3 percent of the total value of shares traded in percent of the total value of shares traded in 2020.
2020. Banks came in second with SAR 247.8 billion As for the number of transactions executed on
(11.9 percent of the total), followed by insurance Nomu in 2020, the consumer services accounted
with SAR 185.0 billion (8.9 percent of the total). for the largest share of transactions with 84.2
A review of the Main Market’s performance by thousand, constituting 29.3 percent of the total
the number of transactions executed reveals that number of transactions (Table 11.6).
materials ranked first with 16.1 million, accounting
for 21.0 percent of the total number of transactions New Public Offerings on Saudi Stock
executed in 2020. Insurance came next with 9.3 Exchange
million (12.1 percent of the total), followed by food In 2020, the shares of three companies were
and beverages with 6.4 million (8.4 percent of the floated on the Main Market and one company on
total). Nomu, with a total capital of SAR 5.3 billion. The
number of issued shares totaled 579.9 million, of
A sectoral comparison of the market capitalization which 110.0 million were offered to the public.
of issued shares by the end of 2020 shows that The total market capitalization of issued shares
energy ranked first with a value of SAR 7,033.5 amounted to SAR 56.2 billion. IPO oversubscription
billion, representing 77.3 percent of the total for companies floated on the Main Market averaged
market capitalization of issued shares. Banks came 15.9 times and 66.0 times in the categories of retail
second with SAR 633.6 billion (7.0 percent of the and institutional investors, respectively. The IPO of
total), followed by materials with SAR 594.7 billion Sumou Real Estate Company floated on Nomu was
(6.5 percent of the total) (Table 11.4). oversubscribed 2.4 times (Table 11.7).
132
Capital Market
Table 11.4: Saudi Stock Market Activity by Sector During 2020
No. of shares traded* Value of shares traded No. of trades Market capitalization
Sector (Million Ratio to (Billion Ratio to Ratio to (Billion Ratio to
(Thousand)
shares) total SAR) total total SAR) total
Energy 3,964.4 5.0 138.2 6.6 4,572.0 6.0 7,033.5 77.3
Materials 18,558.4 23.4 612.2 29.3 16,071.3 21.0 594.7 6.5
Capital Goods 3,205.4 4.0 98.9 4.7 4,876.6 6.4 15.9 0.2
Commercial & Professional
616.9 0.8 24.5 1.2 1,110.9 1.4 11.2 0.1
Services
Transport 1,437.5 1.8 35.8 1.7 1,802.3 2.4 14.7 0.2
Consumer Durables &
1,959.6 2.5 44.5 2.1 2,424.8 3.2 6.6 0.1
Apparel
Consumer Services 4,228.8 5.3 99.1 4.7 4,627.0 6.0 23.8 0.3
Media 665.8 0.8 31.2 1.5 1,246.3 1.6 7.2 0.1
Retailing 2,016.8 2.5 66.5 3.2 3,217.3 4.2 37.5 0.4
Food & Staples Retailing 679.8 0.9 34.7 1.7 1,505.6 2.0 27.2 0.3
Food & Beverages 3,935.5 5.0 151.0 7.2 6,408.3 8.4 96.5 1.1
Health Care Equipment &
1,553.2 2.0 44.8 2.1 1,843.1 2.4 68.3 0.8
Services
Pharma, Biotech & Life
163.9 0.2 5.7 0.3 241.0 0.3 4.7 0.1
Science
Banks 10,094.1 12.7 247.8 11.9 6,066.7 7.9 633.6 7.0
Diversified Financials 1,385.9 1.7 23.4 1.1 1,362.3 1.8 33.2 0.4
Insurance 8,586.6 10.8 185.0 8.9 9,312.2 12.1 51.9 0.6
Software and Services 429.5 0.5 24.2 1.2 928.3 1.2 2.8 0.0
Communications 2,628.3 3.3 62.6 3.0 1,821.4 2.4 246.5 2.7
Utilities 1,080.1 1.4 20.6 1.0 757.6 1.0 91.0 1.0
REITs 2,046.2 2.6 19.8 0.9 1,728.9 2.3 16.0 0.2

Real Estate Management &
10,086.9 12.7 117.3 5.6 4,762.4 6.2 85.0 0.9
Development
Total 79,323.7 100.0 2,087.8 100.0 76,686.3 100.0 9,101.8 100.0
Source: Tadawul 2020 Annual Report.
Table 11.5: Three Most Active Joint-Stock Companies in 2020
No. of transactions Company Saudi Aramco Dar Al-Arkan Alinma Bank
(Thousand) 2,051.6 1,767.1 1,703.8
No. of shares traded Company Dar Al-Arkan Alinma Bank SABIC
(Billion) 6.5 4.1 2.6
Value of shares traded Company SABIC Al Rajhi Bank Saudi Aramco
(Billion SAR) 300.3 83.5 66.4

133
The total number of subscribers for companies subscribers via electronic channels reached 323.0
floated in 2020 was 815.4 thousand. Different thousand (39.6 percent of the total subscribers),
subscription channels, such as phone banking, 189.1 thousand (23.2 percent) via ATMs, 176.3
ATMs, electronic channels and bank branches, thousand (21.6 percent) via bank branches, and
contributed to facilitating the subscription process 126.9 thousand (15.6 percent) via phone banking
and reducing its completion time. The number of (Table 11.8).
Table 11.6: Saudi Stock Parallel Market (Nomu) Activity by Sector During 2020
No. of shares traded* Value of shares traded No. of trades Market capitalization
Sector (Million Ratio to (Million Ratio to Ratio to (Million Ratio to
(Thousand)
shares) total SAR) total total SAR) total
Materials 19.1 17.6 553.5 7.8 14.7 5.1 3,744.0 30.7
Capital Goods 22.2 20.4 1,319.7 18.6 57.5 20.0 5,488.8 45.1
Commercial & Professional
9.3 8.5 829.8 11.7 44.2 15.4 -- --
Services**
Consumer Services 23.9 22.0 2,637.8 37.1 84.2 29.3 471.5 3.9
Software & Services** 8.4 7.7 202.1 2.8 14.7 5.1 -- --

Real Estate Management &
25.7 23.7 1,571.2 22.1 72.2 25.1 2,475.0 20.3
Development
Total 108.6 100.0 7,114.0 100.0 287.5 100.0 12,179.3 100.0
**Companies under this sector were delisted/transferred from the Parallel Market (Nomu) to the Main Market.
Table 11.7: New Public Offerings in the Saudi Stock Markets in 2020
No. of shares offered for public
subscription (million shares)
No. of
oversubscription
No. of retail subscribers
(times)
Market capitalization
Total issued shares
(million shares)
Value of offering
(million SAR)
Floating price
Institutional
Closing price
(million SAR)
(million SAR)
31/12/2020
Date of IPO
(thousand)
Market
Capital
Retail
Issuer
Sector
Dr. Sulaiman
Al Habib Health Care
Main February
Medical Equipment & 3,500 350.0 52.5 50.0 109.0 2,625 224 38,150.0 7.1 144.4
Market 26
Services Services
Group
Amlak
International
Main July
for Real Banks 906 90.6 27.2 16.0 21.9 435 267 1,984.1 26.7 5.0
Market 02
Estate
Finance
Food &
Bin Dawood Main October
Staples 1,143 114.3 22.9 96.0 119.0 2,195 324 13,601.7 13.9 48.7
Holding Market 08
Retailing
Real Estate
Parallel Management
Sumou Real February
Market 250 25.0 7.5 24.0 99.0 30 33 2,475.0 2.4*
Estate & 16
(Nomu)
Development
Total -- -- -- 5,799 579.9 110.0 -- -- 5,285 -- 56,210.8 -- --
*The number of oversubscription by qualified retail and institutional investors in Nomu.
Source: CMA and Tadawul 2020 Annual Report.
134
Capital Market
Companies Added to/Delisted from risks and non-professional practices, such as
TASI and Nomu manipulation and misinformation, in the capital
The following companies were added to TASI in market.
2020:
1. Dr. Sulaiman Al Habib Medical Services In line with its strategy for carrying out its investor
Group (public offer). awareness programs and for this purpose, CMA
2. Amlak International for Real Estate Finance has established several channels through which
(public offer). two main categories of programs were executed:
3. Bin Dawood Holding (public offer). media programs and investment literacy
4. Arab Sea Information Systems (transferred programs. Efforts exerted under media programs
from Nomu). included the publication of 17 press releases
5. Al-Omran Industrial Trading (transferred through various media channels, the participation
from Nomu). of CMA’s officials in 25 interviews with local
6. Al-Samaani Factory for Metal Industries and foreign media, and the participation in a
(transferred from Nomu). number of media and awareness conferences and
Shares of Sumou Real Estate Company were also symposia. With the aim of raising investment
added to Nomu Index in 2020. The following two awareness among investors and young members
companies were delisted from TASI: of the society, CMA launched in 2020 the Smart
1. MetLife AIG ANB Cooperative Insurance Investor Award, one of the initiatives of the Smart
Company. Investor Program. More than 1,800 male and
2. Al-Ahlia Insurance Company. female students from different educational levels
in Saudi Arabia participated in this competition.
CMA’s Efforts in Raising Investor Ten winners were chosen in each track (i.e.
Awareness in 2020 video track, drawing track, writing track and
CMA publishes news and resolutions issued by its photography track). Through its awareness
board on its website and social media accounts programs, CMA has also introduced the valid
to ensure that information is instantaneously sources of information and instructions as well
and equally communicated to all investors. It also as the laws and regulations related to the capital
provides guidance for investors in securities and market. Such awareness efforts would serve to
raises their awareness of laws, instructions and promote the investors’ accessibility to fair and safe
resolutions issued by its board as well as potential investment opportunities and educate and raise
Table 11.8: Number of Subscribers for IPOs by Channel of Subscription
)Thousand(
Channel of 2019 2020

Subscription
No. Percentage No. Percentage
Phone banking 103.7 2.0 126.9 15.6
ATM 1,859.9 36.0 189.1 23.2
E-channels 1,462.7 28.3 323.0 39.6
Bank branches 1,733.3 33.6 176.3 21.6
Total 5,159.7 100.0 815.4 100.0

Source: CMA.
135
awareness of investors, thus safeguarding them Competitiveness Yearbook (WCY) issued by the
against suspicious and fraudulent investments. By World Competitiveness Center of the International
the end of 2020, the number of educational books Institute for Management Development (IMD)
and publications released by CMA totaled 36. All indicates that among the most competitive 63
were published on the electronic platforms of the countries in the world, Saudi Arabia ranked 24
Awareness Programs “Thameen” and “The Smart for the year 2020 compared to 36 in 2017. The
Investor”. WCY also shows that Saudi Arabia ranked second
globally in the stock market capitalization index as
Realizing the importance of social media channels a percentage of GDP, advancing from 29th place in
and their great use by various segments of the 2017, despite the economic impact of COVID-19
society, CMA carried out a series of awareness pandemic. These results stress the depth of the
campaigns through electronic platforms and reforms implemented by Saudi Arabia. They also
social media channels during 2020, especially in reflect the cooperation, and integration of the
light of the challenges the world witnessed due efforts, of government bodies in the development
to COVID-19 pandemic. Some of these campaigns of various sectors through initiatives and programs
were the awareness campaign against unlicensed related to the Saudi Vision 2030 and aimed at
forex activities, the Smart Investor Program’s increasing Saudi Arabia’s competitiveness globally.
campaigns targeting the young segment of the
society, and the joint Gulf awareness campaign Comparison Between Saudi Stock
“Mulem” aiming at educating investors about Exchange and Arab Stock Exchanges in
the GCC capital markets. Moreover, a total of 29 2020
workshops were held by CMA in 2020, during which The COVID-19 pandemic has caused severe
the most important regulations and legislation of repercussions for global financial markets and
the financial market were highlighted. A group inflicted heavy losses on investors around the
of entities supervised by CMA and a number of world. In fact, the pandemic prompted many
legislative authorities in the Saudi financial market investors to withdraw their investments from the
participated in these workshops. market, especially in light of the uncertainty about
the duration of the crisis and the ability to deal
CMA’s Efforts in 2020 in Support of with and address it. Arab financial markets are an
Vision 2030 integral part of the global financial markets; thus,
CMA is working on several initiatives under the they were impacted by the COVID-19 pandemic.
Financial Leadership Program (FLP) and the The performance of Arab stock exchanges
Financial Sector Development Program (FSDP) in participating in the Arab Markets Database (AMDB)
support of the Saudi capital market’s position as varied in 2020. Arab stock exchange indices fell in
the largest stock market in the Middle East and one most Arab markets, driven by the impact of the
of the world’s top ten capital markets. Table 11.9 COVID-19 pandemic. However, five Arab markets
shows the most salient achievements made during recorded increases, namely Saudi Arabia, Qatar,
2020 and their impact. Algeria, Sudan and Syria. The stock exchanges of
Sudan and Syria registered the highest rises of 14.3
Since the launch of the Saudi Vision 2030 and as a percent and 38.5 percent, respectively. On the
result of the efforts exerted during previous years, other hand, the Egyptian Exchange recorded the
Saudi Arabia’s ranking in global competitiveness highest decline, among the Arab stock exchanges,
indicators has progressed. The World of 22.3 percent during the pandemic (Table 11.10).
136
Capital Market
Average total market capitalization of Arab stock market capitalization of the Saudi Stock Exchange
exchanges increased by 1.8 percent to $201.2 stood at $2,426.6 billion, compared to an average
billion in 2020 from $197.5 billion in 2019. The of $201.2 billion for the Arab countries composing
market capitalization of the Abu Dhabi Securities the AMF Index. It represented 75.4 percent of the
Exchange recorded the highest increase of 39.8 total market capitalization of Arab stock exchanges
percent, followed by the Damascus Securities at the end of 2020. Moreover, the value of shares
Exchange with a rise of 36.4 percent. In contrast, traded on the Saudi Stock Exchange amounted to
the market capitalization of the Khartoum Stock $195.5 billion at the end of 2020, constituting 80.4
Exchange recorded the highest decrease of 57.8 percent of the total value of shares traded on the
percent at the end of 2020. markets of Arab countries participating in AMDB.
A comparison of selected Arab stock exchange The number of companies listed on the Saudi
indices at the end of 2020 shows that the Saudi Main Market reached 203 at the end of 2020.
Stock Exchange recorded the highest market The average market capitalization stood at $12.0
capitalization among all Arab stock exchanges. The billion per company, compared to an average
Table 11.9: CMA’s Key Achievements in 2020 to Realize Vision 2030, and their Expected Impact
Achievement
Initiative Purpose Description
& impact
First direct listing of shares on the parallel market (Nomu) as the Saudi capital market is
Achievement
the first among GCC capital markets to allow for direct listing.
-Attracting more companies wishing to list their shares on the Saudi Stock Exchange
1. Deepening the
(Tadawul).
capital market
Facilitating Impact -Enhancing liquidity and increasing the number of companies listed on the Parallel Market
and enhancing (Nomu).
Financing
its role in capital -Supporting and accelerating the growth of Saudi SMEs.
formation
Achievement Approving “Instructions on Issuing Depositary Receipts Out of the Kingdom”.
-Diversifying investor base in the Saudi Stock Exchange (Tadawul).
Impact
-Openness of the Saudi capital market to global capital markets.
Listing units of first two exchange-traded funds (ETFs) investing in government Sukuk:
Achievement
Albilad Saudi Sovereign Sukuk ETF and Alinma Saudi Government Sukuk ETF.
2. Supporting
asset manage- Impact -Diversifying asset classes available to investors in the Saudi Stock Exchange.
ment growth Listing Albilad Gold ETF as the first exchange-traded fund (ETF) in the category of
and enhancing Achievement
commodities.
institutional
-Diversifying asset classes available to investors in the Saudi Stock Exchange.
investment
Impact -Enabling investors in general, and retail investors in particular, to invest in commodities
market through the Saudi Stock Exchange.
Achievement -Allowing foreign investors to invest directly in debt instruments.
Encouraging
3. Enhancing -Promoting investment environment to attract foreign investors, hence increasing
Investment
the market the effectiveness of the capital market and raising competitiveness regionally and
attractiveness to Impact internationally.
foreign investors -Bolstering the role of the capital market in capital formation and diversifying investment
products for all segments of foreign investors.
4. Diversifying Achievement Launching the derivatives market in Saudi Arabia.
investment
products and
-Providing varied investment opportunities in the Saudi capital market and increasing the
mechanisms Impact
efficiency of investment risk management.
available in the
capital market
Source: CMA.
137
number of 95 companies with an average market their investments, in addition to being hedging
capitalization of $1.5 billion per company for the tools that would increase the effectiveness of risk
Arab markets (Table 11.11 and Chart 11.1). management in the market. From this aspect, the
Saudi Stock Exchange introduced the first exchange-
Sukuk and Bonds Market traded derivatives product called the MT30 Index
Developments Futures. The product is an index futures contract
The Sukuk and Bonds Market Index closed at based on the MSCI Tadawul 30 Index (MT30).
1,022.7 points, bringing the total traded value of It provides a benchmark of the 30 largest and
the Market to SAR 37,538.0 million in 2020. The most liquid companies listed on the Saudi Stock
traded value of corporate Sukuk and bonds reached Exchange.
SAR 68.3 million. The traded value of government
debt instruments stood at SAR 37,469.8 million. As for key developments of the derivatives market
The number of transactions in the Sukuk and Bonds during 2020, the market recorded a total of 30
Market amounted to 1,474 in 2020; government deals with a total traded value of SAR 28.2 million.
debt instruments constituted 99.6 percent of In order to enhance the market, the Saudi Stock
these transactions and corporate Sukuk and bonds Exchange is currently working on rolling out more
accounted for the remaining 0.4 percent (Table derivative products, such as single-stock futures,
11.12). single-stock options, and index options.
Derivatives Market Developments Developments of Investment Funds

The derivatives market was launched on August The number of investment funds managed by
30, 2020. It is one of the main initiatives under the investment companies in Saudi Arabia increased
Financial Sector Development Program (FSDP), a by 0.4 percent to 254 in 2020. The total assets
main program adopted by Saudi Arabia to achieve of these funds also rose by 31.1 percent to SAR
Vision 2030. Launching the derivatives market 209.7 billion. Domestic assets and foreign assets
represents a milestone in the development of the of investment funds increased by 12.1 percent and
Saudi Stock Exchange to be an advanced financial 126.9 percent to SAR 149.6 billion and SAR 60.2
market. Derivative instruments provide investors billion, respectively. Furthermore, foreign assets
in the Saudi market with opportunities to diversify constituted 28.7 percent of the total assets of
Chart 11.1: Percentage Shares of Arab Stock Markets Composing the Arab Monetary Fund’s Index at the
End of 2020 by Market Capitalization
Abu Dhabi 6.28
Qatar 5.14
Kuwait 3.30
Dubai 2.89
Morocco 2.04
Saudi Arabia 75.40 Oman 1.63
Egypt 1.28
Bahrain 0.76
Jordan 0.57
Tunisia 0.26
Lebanon 0.21
Palestine 0.11
Syria 0.09
Sudan 0.04
Algeria 0.01
138
Capital Market
Table 11.10: Annual Change in Selected Arab Markets for 2020
)Percentage(
Market Number of shares traded Market capitalization of shares Price index of shares
Saudi Arabia 134.7 0.8 3.6
Kuwait 60.7 -9.7 -2.6
Qatar 415.8 3.3 0.1
Egypt 111.1 -2.7 -22.3
Morocco 29.6 2.4 -7.3
Bahrain 17.8 -8.5 -7.5
Jordan 12.3 -13.5 -8.7
Oman -38.9 7.9 -8.1
Tunisia -35.5 0.1 -0.1
Lebanon -74.7 -13.3 -16.0
Abu Dhabi 86.1 39.8 -0.6
Algeria -6.7 -12.1 1.1
Dubai 109.0 -8.9 -9.9
Sudan -55.1 -57.8 14.3
Palestine -34.7 -18.1 -10.4
Syria -66.8 36.4 38.5

Source: Arab Monetary Fund, the Arab Capital Market Database—Arab Capital Markets, Quarter Bulletin 2020.
Table 11.11: Key Indicators of Arab Capital Markets in 2020
Market GDP at current Average company

Index annual No. of listed
capitalization prices size Market depth **
change companies
(million USD) (billion USD)* (million USD)
Saudi Arabia 3.6 2,426,632 203 701.5 11,954 345.9
Kuwait -2.6 106,249 216 107.9 492 98.4
Qatar 0.1 165,371 45 146.1 3,675 113.2
Egypt -22.3 41,195 256 361.8 161 11.4
Morocco -7.3 65,715 75 113.5 876 57.9
Bahrain -7.5 24,608 44 33.9 559 72.6
Jordan -8.7 18,193 180 43.5 101 41.8
Oman -8.1 52,576 111 63.2 474 83.2
Tunisia -0.1 8,387 81 39.6 104 21.2
Lebanon -16.0 6,724 28 19.1 240 35.2
Abu Dhabi -0.6 202,218 69 354.3 2,931 57.1
Algeria 1.1 326 5.0 144.3 65 0.2
Dubai -9.9 92,887 67 354.3 1,386 26.2
Sudan 14.3 1,313 67 34.4 20 3.8
Palestine -10.4 3,447 48 -- 72 --
Syria 38.5 2,808 24 -- 117 --
Average -2.2 201,166 95 178.3 1,452 69.9

*Data of International Monetary Fund (April 2021). **Market capitalization to GDP.
Source: Arab Monetary Fund, the Arab Capital Market Database—Arab Capital Markets, 4th Quarter Bulletin 2020.
139
the funds compared to 71.3 percent for domestic SAR 81.5 billion at end-2020, accounting for 61.6
assets. The number of investment fund subscribers percent of total investments in money market
stood at around 358.9 thousand at the end of 2020, instruments against 78.3 percent at the end of
increasing by 8.8 percent from that of the preceding the preceding year. Furthermore, investments in
year (Table 11.13 and Chart 11.2). foreign money market instruments grew by 139.1
percent to SAR 50.9 billion at end-2020 compared
A breakdown of the funds’ investments inside and to SAR 21.3 billion at end-2019.
outside Saudi Arabia in 2020 indicates that total
investments on global stock exchanges increased by Investments in other domestic assets jumped by
19.6 percent to SAR 5.0 billion. However, investment 356.4 percent to SAR 13.9 billion at the end of 2020,
in domestic equities decreased by 15.9 percent accounting for 96.9 percent of total investments
to SAR 19.4 billion. Thus, the domestic equities in other domestic and foreign assets compared
accounted for 9.2 percent of the total assets of to 97.5 percent at the end of the preceding year.
investment funds, down from 14.4 percent at the In addition, investments in other foreign assets
end of 2019. Investment in domestic and foreign increased considerably by 455.6 percent to SAR
equities decreased to 11.6 percent of total assets 442 million at the end of 2020.
of investment funds at the end of 2020 against 17.0
percent at the end of the preceding year. Similarly, investments in real estate assets went
up by 6.2 percent to SAR 25.2 billion in 2020,
On the other hand, funds’ investments in foreign representing 12.0 percent of investment funds’
bonds jumped by 284.0 percent to SAR 3.9 billion total assets compared to 14.9 percent at the end of
in 2020. Funds’ investments in domestic Sukuk and the preceding year (Table 11.14).
bonds went up by 38.8 percent to SAR 9.6 billion
from SAR 6.9 billion at the end of 2019. Investments An analysis of the classification of investment
in domestic and foreign bond markets accounted companies by funds’ assets shows that NCB Capital
for 6.4 percent of investment funds’ total assets took the lead in terms of the assets of its investment
at the end of 2020 compared to 5.0 percent at the funds, which stood at SAR 59.9 billion, representing
end of the preceding year. 28.5 percent of total assets of investment funds.
Riyad Capital came next with SAR 47.1 billion (22.5
Funds’ investments in domestic and foreign money percent of the total), followed by Al Rajhi Capital
market instruments constituted 63.1 percent with SAR 22.0 billion (10.5 percent of the total).
of investment funds’ total assets at end-2020 As for the total number of investment funds, Riyad
against 61.3 percent at end-2019. Investment in Capital came first with 30 funds, one of which
domestic money market instruments increased by was close-ended. NCB Capital came second with
6.2 percent from SAR 76.7 billion at end-2019 to 24 funds, two of which were close-ended. Samba
Table 11.12: Sukuk and Bonds Market Statistics for 2020
Index closed at Value traded Number of trades

Sukuk and bonds
(point) (million SAR) (trade)
Corporates Sukuk & Bonds 994.2 68.3 6.0
Government Debt Instruments 1,036.3 37,469.8 1,468.0
Sukuk & Bonds Market 1,022.7 37,538.0 1,474.0

140
Capital Market
Capital and Investment Management Company ranked first with 78.4 thousand, followed by Al
came third with 21 funds, all of which were open- Rajhi Capital with 37.6 thousand and NCB Capital
ended. with 37.5 thousand (Table 11.15).
A breakdown of investment companies ranking by

the number of subscribers shows that Riyad Capital
Table 11.13: Key Indicators of Investment Funds Managed by Domestic Investment Companies
Investments in Investments in Funds’ No. Of

No. Of
Year Change domestic assets Change Foreign assets Change total assets Change subscribers Change
funds
(Billion SAR) (Billion SAR) (Billion SAR) (Thousand)
2015 270 7.1 75.9 -7.3 27.0 -6.4 102.9 -7.1 237.0 -3.7
2016 275 1.9 70.7 -6.9 17.2 -36.3 87.8 -14.6 224.4 -5.3
2017 273 -0.7 91.1 29.0 19.1 11.1 110.2 25.5 238.4 6.3
2018 249 -8.8 93.6 2.7 18.2 -4.6 111.9 1.5 332.6 39.5
2019 253 1.6 133.4 42.5 26.5 45.6 160.0 43.0 329.7 -0.9
2020 254 0.4 149.6 12.1 60.2 126.9 209.7 31.1 358.9 8.8
Source: CMA.
Chart 11.2: Assets of Investment Funds at Domestic Investment Companies
160
140
120
100
Billion SAR
80
60
40
20
0
2016 2017 2018 2019 2020
Foreign assets Domestic assets
Table 11.14: Assets of Investment Funds Managed by Domestic Investment Companies by Type of Investment
)Million SAR(
Domestic Foreign
Domestic Other Other
Domestic Foreign Foreign money money Real estate Total
Year sukuk and domestic foreign
equities equities bonds market market investments assets
bonds assets assets
instruments instruments
2016 16,386.4 4,940.3 5,577.0 1,282.4 40,793.4 10,569.9 4,698.5 388.4 3,199.5 87,835.7
2017 17,988.1 5,420.2 4,996.2 1,527.8 55,168.8 11,597.8 8,743.0 541.5 4,249.2 110,232.8
2018 21,512.3 4,320.9 4,493.6 1,032.4 45,446.7 12,736.0 2,588.0 123.2 19,608.6 111,861.7
2019 23,000.4 4,149.5 6,915.2 1,010.8 76,728.7 21,276.5 3,043.4 79.6 23,754.0 159,958.0
2020 19,351.6 4,964.7 9,595.2 3,881.1 81,505.8 50,874.5 13,888.8 442.2 25,220.5 209,724.3
Source: CMA.
141
Table 11.15: Classification of Investment Companies by Assets, Number of Funds and Number of Subscribers in
2020
Assets of funds
No. of funds
(Million SAR) No. of
Company Total Total
Close- Open subscribers
Domestic Foreign
ended -ended
NCB Capital Co. 2 22 24 39,617.0 20,257.7 59,874.7 37,543
Riyad Capital Co. 1 29 30 22,935.6 24,209.0 47,144.6 78,426

Al Rajhi Financial Services Co. 1 13 14 14,719.8 7,289.8 22,009.6 37,589
Alinma Investment Co. 1 10 11 14,341.0 0.0 14,341.0 5,807
Samba Capital and Investment Management Co. 0 21 21 10,597.5 926.2 11,523.7 22,552
HSBC Saudi Arabia Limited 0 19 19 7,584.8 649.6 8,234.5 21,576
Saudi Fransi Capital 2 10 12 5,368.4 571.0 5,939.5 14,899
Al Jazira Capital Co. 3 12 15 4,257.7 1,406.4 5,664.1 4,849

Alfa Financial LLC 0 2 2 2,874.9 2,485.7 5,360.7 86
Jadwa Investment Co. 2 5 7 3,193.7 618.6 3,812.4 19,594
ANB Invest Co. 1 8 9 3,810.7 1.2 3,811.9 5,854
AlBilad Investment Co. 0 12 12 3,479.2 180.4 3,659.6 25,281
FALCOM Financial Services 0 6 6 1,413.3 544.3 1,957.5 1,372
Alkhabeer Capital Co. 1 1 2 1,729.0 0.0 1,729.0 8,540
Derayah Financial Co. 1 1 2 1,613.5 5.9 1,619.3 9,419
Alistithmar for Financial Securities and Brokerage Co.

0 4 4 1,498.5 52.6 1,551.1 479
(Alistithmar Capital)
Middle East Financial Investment Co. 2 2 4 1,379.5 0.0 1,379.5 16,291

Alawwal Invest Co. 0 7 7 1,059.4 249.2 1,308.6 1,550
Mulkia Investment Co. 1 0 1 1,298.6 0.0 1,298.6 5,589
Musharaka Capital Co. 1 2 3 1,232.8 1.0 1,233.8 5,844
Saudi Economic and Development Company (SEDCO) 1 1 2 1,085.3 0.0 1,085.3 17,826
Swicorp 1 1 957.8 0.0 957.8 6,678
Muscat Capital Co. 1 2 3 687.0 141.8 828.8 4,525
Kamco Invest Co. 0 1 1 682.0 0.0 682.0 4
Osool & Bakheet Investment Company 1 4 5 641.4 0.0 641.4 5,152

Ashmore Investment Saudi Arabia 0 2 2 174.5 237.5 412.0 22
Alkhair Capital Saudi Arabia 0 4 4 206.2 92.5 298.7 69
KASB Capital 2 4 6 283.9 0.0 283.9 1,170
Alawwal Capital Co. 0 3 3 250.9 19.6 270.4 65
Itqan Capital Co. 0 2 2 71.3 156.6 228.0 59
Blominvest Saudi Arabia Co. 1 4 5 192.5 5.5 198.1 65
GIB Capital 0 3 3 106.1 25.0 131.1 21
Audi Capital Co. 0 3 3 60.3 27.8 88.1 29
Bait Al Mal Al Khaleeji Co. 0 3 3 63.2 0.0 63.2 23
Morgan Stanley Saudi Arabia Co. 0 1 1 49.1 0.0 49.1 6
Arbah Capital Co. 0 1 1 15.5 7.3 22.7 16
Saudi Kuwaiti Finance House (SKFH) 0 1 1 15.8 0.0 15.8 3
Wasatah Capital Co. 0 1 1 9.9 0.0 9.9 5
Al-Nefaie Investment Group 0 1 1 2.3 0.0 2.3 15
Tharwat for Financial Securities Co. 0 1 1 1.9 0.0 1.9 1
Total 26 228 254 149,561.9 60,162.5 209,724.3 358,894
Source: CMA.
142
12
SAMA,
ACHIEVEMENTS
AND
ASPIRATIONS
stipulates, inter alia, changing the name ‘Saudi

Arabian Monetary Authority’ to ‘Saudi Central
SAMA, Achievements and

Bank’ with direct reporting to His Majesty the
Aspirations
King. As per the law, SAMA maintains its financial
and administrative autonomy as to be in line
with international practices of central banks. The
Saudi Central Bank Law also stipulates that the
The Saudi Central Bank (SAMA) seeks to fulfill Saudi Central Bank (SAMA) shall replace the Saudi
the mandate entrusted to it in line with national Arabian Monetary Authority in all of its rights and
economy requirements and Saudi Vision 2030. In obligations.
performing its functions, SAMA follows a clear
vision of the present and future of the financial Moreover, the Saudi Central Bank Law sets out the
sector in Saudi Arabia and the prospective objectives of SAMA as follows:
role of the sector in boosting the economic 1. Maintaining monetary stability.
growth. This chapter discusses SAMA’s roles and 2. Promoting the stability of, and boosting
functions, salient achievements made in 2020 confidence in, the financial sector.
(1441/1442H), key efforts exerted to curtail 3. Supporting economic growth.
the impacts of the COVID-19 pandemic, and
SAMA’s role toward achieving Vision 2030. It The law also affirms that the onus of developing
also touches upon SAMA’s contributions to the and managing the monetary policy and choosing
society. The last part of the chapter reviews key its instruments and procedures shall be on SAMA.
developments in SAMA’s financial position. In addition, the law clarifies the nature of the
relationship between SAMA, on the one hand, and
Despite the challenges the world faced in 2020 the government and related external international
due to the COVID-19 pandemic, SAMA realized agencies, on the other hand. Furthermore, it
a number of achievements at both the local establishes a governance framework for SAMA’s
and global fronts. Some of these achievements functions and decision-making. According to the
included obtaining the approval of the Custodian law, the Saudi Central Bank shall retain its acronym
of the Two Holy Mosques, King Salman bin “SAMA” given its historical importance and its
Abdulaziz Al Saud, for the Saudi Central Bank domestic and international stature. Banknotes
Law and winning the Central Banking Award, and coins of all denominations bearing the name
which was presented by the Central Banking of the Saudi Arabian Monetary Authority will also
Committee, for the Initiative of the Year 2020 for remain in circulation and keep their status as legal
SAMA’s Business Continuity Program. SAMA also tender.
contributed to a successful Saudi G20 Presidency
as manifested in historic outcomes and initiatives, Before issuing the Saudi Central Bank Law, the
especially in the Finance and Sherpa Tracks. international best practices regarding central bank
regulations as well as relevant recommendations
Saudi Central Bank Law were reviewed. Such practices were analyzed
The approval of the Custodian of the Two Holy to ensure their alignment with the domestic
Mosques, King Salman bin Abdulaziz Al Saud, was environment and the Saudi economy. Based
issued on November 24, 2020 (Rabi’ II 9, 1442H) on the results, the Charter of the Saudi Arabian
for the Saudi Central Bank Law. The new law Monetary Authority was updated and became the
144
SAMA Achievements and Aspirations
Saudi Central Bank Law. The new law augments income, within the constraints of appropriate
SAMA’s role in discharging its mandates, keeps up risk appetite.
with the requirements of the current era and rapid
economic and financial developments worldwide, SAMA’s Efforts in Response to
and conforms with Saudi Vision 2030 that aims to COVID-19 Pandemic
make Saudi Arabia a successful and leading global SAMA introduced on March 14, 2020 a support
exemplar on various fronts. program aimed at the private sector to be able
to promote economic growth. With the aim of
SAMA’s Strategy mitigating the impact of the COVID-19 pandemic
SAMA strives to support the Saudi Vision 2030 on the society, SAMA also issued a number of
and its executive programs, such as the Financial instructions and directives concerning institutions
Sector Development Program (FSDP), through under its supervision. SAMA’s efforts came as part
maintaining monetary and financial stability and of its role in activating monetary policy tools and
supporting balanced and sustainable economic enhancing financial stability, including enabling
growth. SAMA’s strategy sets out four objectives: the financial sector and supporting private sector
maintaining monetary stability, safeguarding the growth. Such efforts have complemented the
stability and resilience of the financial system, efforts made by the government in response to
broadening and deepening the financial sector the COVID-19 pandemic to mitigate its financial
and contributing to the economic development and economic impacts on the private sector,
of the nation. These strategic fundamentals have particularly the micro, small and medium-sized
constituted the bedrock for achieving SAMA’s enterprises (MSMEs).
aspirations. To that end, SAMA is committed to
adopting relevant international best practices, SAMA’s Private Sector Financing
maintaining human capital while continuously Support Program
developing its capabilities, and benefiting from I. Small and Medium-Sized Enterprise
the latest technologies to support the roles vested (SME) Financing Support
in SAMA, including: This program aims to mitigate the impacts of
• To issue, and efficiently manage, the national precautionary measures against COVID-19 on
currency. the SME sector. Specifically, it targets lessening
• To formulate and execute a monetary policy the pressures of cash flow volatility, supporting
consistent with the national economic goals. the working capital of the sector, and enabling
• To provide and publish appropriate statistical it to grow, contribute to economic growth and
reports and economic research. maintain the level of employment in the sector.
• To effectively and efficiently regulate The program includes the following:
institutions under its supervision.
• To protect consumers of institutions under its 1. Deferred Payments Program
supervision and promote financial inclusion. Through this program, funds were deposited into
• To provide effective banking services to the banks and finance companies against a six-month
government. moratorium on the repayment of dues by the
• To provide comprehensive and innovative SMEs. Additionally, as part of its role to activate
payment systems. monetary policy instruments and promote
• To maintain the soundness of external financial financial stability, SAMA has extended the period
assets and maximize long-term investment of the program for the second time to end-Q2
145
2021. Starting from the launch of the program borne by SAMA, exceeded 10 thousand with a
until March 18, 2021, the number of contracts total financing value of over SAR 21 billion, while
benefiting from the Deferred Payments Program the value of supported fees of those guarantees
was 99 thousand, with the value of payments reached SAR 144 million.
deferred amounting to SAR 124 billion.
II. POS and E-Commerce Service Fee
2. Guaranteed Financing Program Support Program
SAMA, in cooperation with the SME Financing Transaction fees of all stores and private sector
Guarantee Program (Kafalah)4, has launched the firms were supported for a period of three
Guaranteed Financing Program that guarantees months, with a total value of over SAR 800 million.
95 percent of the total finance value extended Such fees were borne by way of SAMA paying
via Kafalah Program’s approved mechanisms. them to payment service providers participating
The program aims to provide additional support in the national system. In addition, the program
to MSMEs, enhance their creditworthiness, and was extended by three additional months, which
help overcome challenges facing financing of ended on September 14, 2020. Fee-exempted POS
MSMEs. This support would reduce the impact and e-commerce transactions reached 1.1 billion
of the decline in MSMEs’ cash flows, help MSMEs and 97 million, respectively. The value of fees
to serve their customers, and enable them to pay supported by SAMA through the program stood at
salaries and entitlements of their employees. In SAR 1.28 billion5.
continuation of such support, SAMA has extended
the period of the Guaranteed Financing Program III. SAMA’s Treatment for Enterprises
for an additional year up to March 14, 2022. Impacted by Precautionary Measures
More than 5 thousand contracts have benefitted Taken in Makkah and Madinah
from the program, with a total financing value SAMA coordinated with banks and finance
exceeding SAR 5 billion. Moreover, the number companies to facilitate payments relating to
of guarantees issued by Kafalah Program under the financing of enterprises impacted by the
the Guaranteed Financing Program has surpassed precautionary measures taken in Makkah and
4 thousand, with financing totaling over SAR 8 Madinah.
billion.
IV. Banking Sector Liquidity Boost of
3. Loan Guarantee Program SAR 50 Billion
An amount of SAR 6 billion was credited to SAMA has injected an amount of SAR 50 billion
financiers (banks and finance companies) to into the banking sector to enhance banking
enable them to relieve small and medium- liquidity and enable banks to continue providing
sized businesses from the finance guarantee credit facilities for their private sector customers.
costs of Kafalah Program. The Loan Guarantee This support measure aimed to help banks revise
Program aimed to reduce finance costs for or restructure the private sector loans with no
entities benefitting from the guarantees up to the additional charges, support plans to maintain
end of 2020, in addition to supporting finance employment in the private sector, and provide
expansion. Issued guarantees, whose fees were certain e-banking services for free.
4
Formerly known as “Funding for Lending Program”.
5
Exclusive of VAT.
146
Supervisory Measures and Prudential to prevent virus transmission.
Policies in Response to COVID-19 • Switching to online services and remote
Pandemic customer service.
SAMA has adopted many macroprudential • Imposing precautionary health measures on
instruments aiming to ensure financial stability in branches operating in the financial sector.
Saudi Arabia through managing systemic risk and • Directing all banks operating in Saudi Arabia to
preventing disruption of vital financial services grant banking fee exemptions for a specified
necessary for economic growth. In addition, period as follows:
the prompt intervention by SAMA and different - Exemption of fees charged on executing
government bodies has played a pivotal role in transactions via electronic channels for a
supporting both the real economy and the banking period of six months, in addition to fees of
sector’s liquidity and assets quality. Moreover, activating any e-banking services during that
the prominent supervisory measures and period.
macroprudential policy instruments implemented - Fees charged in case of the account balance
during the pandemic are as follows: falling below the minimum requirement, for a
• Issuing necessary instructions for banks on period of at least six months.
accounting and regulatory treatment method - Any fees imposed on refinancing or
for support measures taken during the crisis. termination of outstanding agreements
• Implementing an additional transitional (whether financing or deposit-related), for a
treatment of the impact of provisions on period of at least six months.
banks’ capitals. • Issuing a directive to reevaluate interest
• Allowing deposits placed by SAMA at banks rates and other fees charged on credit
to be included in the calculation of the cards as customers, due to uncontrollable
requirement of credit-to-deposit ratio. circumstances, have been forced to use them
• Postponing stress-testing requirements, during the pandemic more often than before.
Internal Capital Adequacy Assessment • Directing all banks and finance companies to
Process (ICAAP), Internal Liquidity Adequacy charge back any foreign exchange fees charged
Assessment Process (ILAAP), implementation by the bank to customers wishing to cancel, or
of the final updates of Basel III framework have already cancelled, travel bookings made
(Basel 3.5), and the remaining implementation using credit cards, cards linked to their current
phases of the initial margin requirements for accounts or prepaid cards.
non-centrally cleared derivatives. • Directing all banks operating in Saudi Arabia
• Postponing the annual supervisory visits and to put in place and implement plans for their
ICAAP reviews. private sector customers to help maintain the
• Postponing the issuance and implementation level of employment in firms impacted by
of some policies. the COVID-19 pandemic. These plans should
• Isolating and disinfecting all banknotes and take into account the financing needs of the
coins entering Saudi Arabia. impacted firms, such as concessional interim
• Raising the cap for e-wallets to SAR 20,000 loans for a period of at least six months,
in order to reduce visits to branches for cash thus enabling the firms to continue paying
withdrawals. salaries and entitlements of their respective
• Raising the cap on PIN-less payments made employees.
via mada atheer at POS terminals to SAR 300 • Directing finance companies to support and
147
extend financing to the private sector by procedures for ATM cards “mada” and credit
reaching out to customers from all sectors cards by using all possible means.
impacted by the pandemic, and taking • Electronically extending all active retail
effective and proactive prudential measures motor insurance policies for a period of two
that serve the interests of customers, finance months and adding two additional months to
companies and the economy alike whether the retail motor insurance policies that were
through revising or restructuring current purchased during the period from 08/05/2020
loans without any additional costs or fees. to 06/06/2020, without charging the insureds
Such support aims to mitigate the impacts any additional costs and without the need for
on customers and enable them to continue customers to communicate with insurers.
practicing their business activities. • Implementing all precautionary measures
• Directing all banks and finance companies related to the health and safety of employees
operating in Saudi Arabia to provide support in the financial sector, such as remote working,
for all customers who have lost their jobs due social distancing, and sanitization of buildings,
to the pandemic whether directly or indirectly, work premises and branches.
with such support including deferral of payable • Intensifying awareness campaigns targeting
installments for financing products free of any consumers to promote the use of electronic
additional charges or fees for a period of six channels to complete their banking
months. transactions without the need to visit banks
• Directing all banks to grant a moratorium on and remittance centers, in order to avoid
repayment of installments for all financing crowding.
products for three months without any
additional costs or fees for Saudi employees Monetary Policy
supported through the unemployment SAMA plays a fundamental role in the domestic
insurance scheme “SANID”. SAMA has also economy through its monetary policy that aims
directed to extend the moratorium for to maintain monetary stability, ensure abundant
financing repayments payable by beneficiaries liquidity to meet economic needs, and support the
as pursuant to the issuance of the approval for stability of exchange rate. SAMA has maintained
extending the support for Saudi employees the exchange rate of the Saudi riyal against the
through “SANID” scheme. U.S. dollar fixed at SAR 3.75 per one U.S. dollar
• Suspending the freezing of retail bank accounts since 1986. To achieve the goals of its monetary
in a number of cases, including expiry of policy, SAMA uses a package of monetary policy
individual consumers’ IDs, KYC requirements tools, including the repo and reverse repo rates,
not being satisfied, and the status of accounts SAMA bills, reserve ratios for commercial banks,
turning into ‘dormant’; and suspending, until direct deposits, open market operations and other
further notice, the freezing of corporate bank monetary tools available to SAMA to manage
accounts and the freezing of authorization liquidity levels. These tools have helped maintain
granted to the authorized signatories due the stability of the Saudi riyal exchange rate, thus
to ID expiry-related reasons, such as expiry supporting economic growth through imports and
of the authorized signatory’s ID or expiry of exports.
the commercial register that could not be
renewed due to the expiry of the related ID. Financial Stability
• Directing banks to streamline the renewal SAMA has an effective role in the banking and
148
financial system. It closely supervises all banking, pens and UV lights to elderly vendors and
finance and insurance institutions in order to shop owners in bazaars and seasonal event
achieve a number of strategic objectives, such venues.
as maintaining the soundness and resilience of • Introducing an on-the-job training initiative for
the banking and financial systems, in addition to the staff of cash centers of commercial banks
identifying, assessing, measuring and addressing seeking training to obtain necessary expertise
all related risks. To that end, SAMA monitors in the area of detecting counterfeit currency
capital and levels of liquidity and profitability of and knowledge on Saudi banknotes, their
the financial sector. It also observes stress testing technical specifications and security features.
of the banking sector and its indicators of financial • Holding meetings of the Standing Committee,
soundness to ensure resilience of the financial which is located at SAMA, to study sources
economy and its ability to withstand shocks. of counterfeit currency and determine
preventive measures.
1. Achievements and Aspirations • Organizing awareness media campaigns
1.1 National Currency Management about the new issuance of Saudi currency
SAMA’s functions include issuing the national denominations of the 5 riyal banknote made
currency (banknotes and coins), maintaining of polymer and the 20 riyal banknote marking
issuances and their value, holding Saudi Arabia’s the G20 Saudi presidency during the era of
currency assets, and meeting the demand for the Custodian of the Two Holy Mosques, King
currency through SAMA’s branches in all regions of Salman bin Abdulaziz Al Saud.
Saudi Arabia. The currency is printed and minted in • Participating in shopping centers’ events to
accordance with the latest technical specifications provide information about Saudi banknotes
available in the industry, and it incorporates the and coins.
latest and strongest security features that make • Continuing the development of the mobile
it simple for people handling cash to judge the application that interactively provides
authenticity of a banknote. In addition, SAMA information about Saudi banknotes and their
seeks to raise awareness of the national currency security features.
along with its security features. It also pursues all
cases of currency counterfeiting and continuously 1.2 Foreign Reserve Management
coordinates with security authorities in order to By managing foreign exchange reserves, SAMA
combat all counterfeiting attempts, a fact that aims to achieve a balance between maximizing
has contributed to the decline of counterfeiting investment returns and meeting liquidity
rates of the Saudi currency as compared to other requirements. Foreign exchange reserves are
countries. SAMA’s efforts in combating currency managed by a qualified and specialized national
counterfeiting include the following: cadre with the highest level of education and
• Continuing to spread awareness about the professional qualification. Such management is
national currency, its security features and conducted according to international standards
technical specifications through guides, and regulations on foreign asset management and
information published on SAMA’s website and based on a periodically reviewed comprehensive
social media accounts, educational films, and investment policy. SAMA carries out its
specialized training courses and workshops on investments through strong diversified investment
banknotes. portfolios that are dynamically managed in order
• Distributing counterfeit banknote detection to optimize the distribution of assets and benefit
149
from investment opportunities. Seeking to adopt in Saudi Arabia to replace the Compliance
international best practices, SAMA applies the Manual for Banks Working in Saudi Arabia
Global Investment Performance Standards (GIPS), (issued in 2008).
which were formulated by the CFA Institute. • Approving the implementation of the standards
Additionally, SAMA takes moral responsibility in of the Islamic Financial Services Board (IFSB)
its investment practices by banning investment in in order to develop Islamic finance in line with
certain activities, such as gambling and trading in the international recommendations and best
alcohol, tobacco, pork, and weapons. practices. Such a step reflects SAMA’s keenness
to enact supervisory legislation and laws to
1.3 Supervision and Control of Banking regulate Islamic financial institutions in the
Sector banking sector. Among the adopted standards
SAMA supervises and regulates banks in order to is the Shariah governance standard. In this
ensure their sound operations, financial solvency regard, SAMA issued the Shariah Governance
and efficient performance in the national economy. Framework for Local Banks Operating in Saudi
It, therefore, implements laws; issues regulations, Arabia, which sets out 18 articles.
instructions and rules; makes supervisory visits; • Updating the Licensing Requirements for
and executes necessary inspection programs. The Establishing a National Bank and the Licensing
following are the most prominent developments Requirements for Opening a Foreign Bank
in 2020: Branch in Saudi Arabia, and publishing the
• Issuing, revising or updating, as necessary, Bank Licensing Guidelines and Minimum
SAMA’s instructions in line with the advances Criteria on SAMA’s official website.
witnessed in Saudi Arabia, other applicable • Making periodic supervisory visits to all
laws and international best banking practices. domestic banks and foreign banks’ branches
In particular, SAMA updated the Rules for Bank operating in Saudi Arabia, to update and assess
Accounts and Rules on Disclosure of Interest banks’ risk profiles. Against the backdrop
Rates on Financing and Savings Products. of the circumstances brought about by the
Moreover, SAMA developed the Standard COVID-19 pandemic, the General Department
Agreement for Retail Current Account of Banking Control made virtual supervisory
Opening and the Standard Agreement for visits in 2020 to all domestic banks and foreign
Corporate Current Account Opening, issued banks’ branches operating in Saudi Arabia,
the Guidelines on Digital Certification of and developed their respective risk profiles.
Banking Products for Bank Customers to • Continuing to plan and perform different
be applied in personal financing and credit on-site banking inspections. A number of
cards issuance, and updated a number of thematic, targeted and specialized inspection
instructions in a manner that would serve the programs were implemented using a risk-
sector and stakeholders. based approach and the internally produced
• Issuing new instructions to regulate the recommendations on bank risk profiles. The
banking sector in Saudi Arabia, such as the programs aimed to ensure banks’ compliance
Additional Licensing Guidelines and Criteria with relevant laws and instructions and assess
for Digital-Only Banks in Saudi Arabia, Rules the soundness of their internal controls
on Management of Problem Loans, Guidelines against the international best practices. Such
on Management of Problem Loans, and inspection programs covered variable aspects,
Compliance Principles for Banks Operating most prominently banks’ prudential measures
150
during COVID-19 pandemic, credit and risk-weighted assets. Tier 1 capital must be
operational risks, and customer service and at least 6 percent of the risk-weighted assets.
control functions at banks, such as compliance Total regulatory capital (Tier 1 capital and Tier
departments, internal audit departments 2 capital) must be at least 8 percent of the
and risk management departments. SAMA risk-weighted assets.
also follows up banks’ compliance with • Capital conservation buffer of 2.5 percent of
corrective action plans relating to the results risk-weighted assets. This requirement must
of these programs through on-site visits of the be met with CET1 capital.
inspection teams. • Capital surcharges for systemically important
banks (which were six in 2020). Such banks
1.3.1 Macro-Prudential Supervisory along with their respective surcharges must be
Measures in Saudi Arabia identified in the relevant annual assessment
SAMA adopts many macroprudential instruments process.
aimed at ensuring financial stability in Saudi • Maintaining the risk-weighted asset ratio of
Arabia by managing systemic risks and preventing residential real estate finance unchanged at
disruption of vital financial services necessary for 50 percent.
economic growth. Additionally, Saudi banks had • Deposit liabilities of a bank must not exceed
enjoyed high levels of liquidity and capital before 15 times its reserves and invested capital.
the onset of the COVID-19 pandemic in early 2020, • The minimum ratio of Tier 1 capital to total
which have contributed to mitigating the impact exposures must be 3 percent.
of the pandemic on the banking system and its • A reserve requirement of 7 percent for
ability to continue playing its supporting role in demand deposits and 4 percent for time
the economy. Moreover, the prompt intervention deposits, to be calculated by banks according
by SAMA and different government bodies has to daily average deposit balances at the end
played a pivotal role in supporting both the real of the month.
economy and the banking sector’s liquidity and • A minimum liquidity reserve of 20 percent of
assets quality. banks’ deposit liabilities. SAMA, in a statement
released in January 2019, stipulated that the
As regards prudential policy instruments, given statutory reserves must be included under
that the countercyclical capital buffer was the definition of liquid assets when the ratio
predetermined at zero, there was no room to is calculated.
ease this requirement in 2020. Other capital • The net stable funding ratio (NSFR) must be
requirements also remained unchanged during the maintained by banks, at all times, at no less
pandemic. Macroprudential policy instruments than 100 percent.
include: • The liquidity coverage ratio must be
• Reducing the risk-weighted asset ratio for maintained by banks, at all times, at no
non-corporate SMEs to 85 percent instead of less than 100 percent of projected net cash
100 percent, while continuing to implement outflows over a 30-day stress period.
the risk-weighted asset ratio for retail SMEs at • Weighted loan-to-deposit (LTD) ratio must not
75 percent. exceed 90 percent.
• Regulatory capital requirements in line with • A bank’s total exposure to any single non-
Basel III requirements: Common Equity Tier bank counterparty or group of connected
1 (CET1) must be at least 4.5 percent of the counterparties (except for individuals, sole
151
proprietorships, and commercial enterprises leverage ratio, in addition to Pillar 2 framework

mostly owned by the government or a of Basel standards.
government-related entity) must not exceed
15 percent of Tier 1 capital at all times. Total 1.4 Supervision and Control of
exposure to individuals, sole proprietorships Insurance Sector
or partnerships must not exceed 5 percent As part of its supervisory and regulatory role,
of Tier 1 capital. Bank’s total exposure to any SAMA strives to enhance the growth and stability
other bank must not exceed 25 percent of of the insurance sector and safeguard it against
Tier 1 capital of the lending bank. This ratio potential risks, thereby contributing to the
drops to 15 percent if the borrowing bank achievement of the objectives of Saudi Vision
and/or the lending bank are/is systemically 2030. SAMA also develops the insurance sector,
important, whether domestically (D-SIB) or bolstering its capabilities to face potential risks
globally (G-SIB). In addition, the total exposure and keep up with the economic growth of the
of a bank to any commercial enterprise mostly nation. For that reason, SAMA encourages insurers
owned by the government or a government- to increase their capitals through mergers and
related entity must not exceed 25 percent of acquisitions. Mergers contribute to enhancing the
Tier 1 capital at all times. competitiveness of the insurance sector through
• The total large exposure of a bank (i.e. to any the establishment of large competitive insurance
single counterparty or group of connected entities. They would also buttress the financial
counterparties, which accounts for 10 percent position of the insurance sector and safeguard the
or more of Tier 1 capital) must not exceed six rights of the insureds. In addition, mergers result
times the bank’s Tier1 capital. in improving the quality of services provided for
• The total exposure of a bank to any non-bank customers, reducing costs, enhancing efficiency,
related counterparty that is not a company diversifying products offered, and attracting and
listed on the Saudi Exchange must not exceed retaining competent human resources, in addition
5 percent of the bank’s Tier 1 capital. However, to other beneficial effects of mergers that would
if such non-bank counterparty is listed on the be reflected positively in the economy, the
Saudi Exchange, the total exposure must not financial sector, customers, and beneficiaries of
exceed 10 percent of Tier 1 capital. The total insurance coverages.
exposure of a bank to its non-bank subsidiary
in the financial sector may reach 25 percent SAMA publishes the laws, regulations and
of Tier 1 capital. Furthermore, the cumulative instructions related to the sector on its website.
limit on all exposures of a bank to non-bank It also publishes information related to the
related counterparties must not exceed 50 insurance market and licensed companies
percent of Tier 1 capital. operating in this sector and information about
• Requiring banks to continue implementing the supervisory and inspection visits made by SAMA
variation margin requirements and to comply to assess the performance of insurance and
with margin requirements for non-centrally reinsurance companies. The following are the key
cleared derivatives based on the approved developments of the sector in 2020:
implementation phases. • Successful completion of two mergers among
• Requirements of regulatory treatment of insurers, in addition to signing memoranda
banks’ exposures to central counterparties of understanding for the consideration of
(CCPs), covering capital, large exposures and mergers.
152
• Issuance and update of regulations pertinent participated in a number of working groups
to the insurance sector in a way that would at the Islamic Financial Services Board (IFSB),
ensure its soundness and growth and the chiefly those tasked with developing standards
provision of best services for policyholders related to Takāful (Islamic insurance) and
and beneficiaries of insurance coverages Retakāful (Islamic reinsurance), solvency
while safeguarding their rights. This includes margin of Takāful and Retakāful companies,
the issuance of a number of standard forms core principles for Islamic finance regulation,
of compulsory insurance policies. In order to and prudential Islamic financial indicators.
boost growth of the insurance sector and curb • Launch of the second version of the Advanced
adverse practices, several rules, guidelines Diploma in Insurance (ACII), which aims to
and instructions were also issued, including enable participants to acquire technical skills
the Rules Governing Insurance Aggregation in different insurance areas, and update of the
Activities, Rules Governing Bancassurance Insurance Foundation Certificate Exam (IFCE).
Activities, Rules for Comprehensive Insurance These steps came in continuation of SAMA’s
of Motor Vehicles Financially Leased efforts to regulate the insurance sector and
to Individuals, Actuarial Work Rules for urge companies and their employees to adhere
Insurance, and Rules of Insurance Products to professionalism and practice insurance
Approval. In addition, with the aim of business based on a well-established scientific
supporting the stability and growth of the and methodological basis pursuant to rules,
sector while ensuring the soundness of its regulations and instructions issued by SAMA.
practices, a number of detailed circulars were
communicated. 1.5 Supervision and Control of Finance
• Issuance of the Standard Policy of Inherent Sector
Defects Insurance as part of SAMA’s efforts • SAMA seeks to develop the regulatory and
and the efforts of Ministry of Municipal, Rural supervisory frameworks of the finance sector
Affairs and Housing to safeguard the rights of to achieve the main objectives of finance laws
the insured against any defects in construction and their implementing regulations (Finance
works that weaken the strength, sturdiness Companies Control Law and its Implementing
and stability of buildings. Such defects might Regulations, Real Estate Finance Law and
result from design flaws, building materials its Implementing Regulations, and Finance
of low quality, or inadequate testing of soil or Lease Law and its Implementing Regulations).
construction. Through these laws and regulations, SAMA
• Cooperation between SAMA and several seeks to enhance financial stability in the
international organizations competent finance sector and promote sustainable
in the areas of supervision, controls and economic growth. To achieve these goals,
implementation of international standards SAMA has set necessary guidelines for
and practices. This cooperation was engaging in finance activities, sought to ensure
established through SAMA’s membership in fair transactions for all stakeholders and
the International Association of Insurance encouraged fair competition among financiers
Supervisors (IAIS), participation in its general while taking into account the principles of
meetings and attendance of the meetings, transparency and disclosure. SAMA is also
conferences and webinars of the executive responsible for issuing licenses for finance
committee and main committees. SAMA also activities in accordance with finance laws
153
and regulations. The following are the key To achieve growth in the payments sector in
developments during 2020: a manner consistent with its soundness and
• SAMA made 42 supervisory visits and 141 efficiency, SAMA has developed supervisory and
on-site visits to finance companies. The regulatory frameworks for payment and financial
visits were aimed at studying the technical settlement systems and services. SAMA has also
and regulatory aspects of these companies, worked on developing, managing and overseeing
assessing their business plans and governance, a modern payment infrastructure in line with
and evaluating their compliance with finance international best practices and technologies
laws and implementing regulations. SAMA available in the banking industry. These efforts
also made one licensing visit during 2020. reflect the key and vital role of payment and
• In the context of developing the non-banking settlement systems in the financial and banking
finance ecosystem in Saudi Arabia, the sectors, manifested in payments, clearing and
Risk-Based Supervision Project for Finance settlements through electronic channels. SAMA
Companies was completed. The project aims has taken into account the Principles for Financial
to direct resources toward high-risk activities. Market Infrastructures (PFMIs) issued jointly by the
• SAMA issued some regulatory policies Committee on Payment and Market Infrastructures
for finance companies, such as the rules (CPMI), at the Bank for International Settlements
for classification of credit risk exposures, (BIS), and the International Organization of
provisions of finance companies, Rules for Securities Commissions (IOSCO). The PFMIs stress
Engaging in Debt-Based Crowdfunding, the responsibility of central banks to supervise
and Rules for Licensing of Finance Support and develop payment and settlement systems as
Activities. In addition, 28 circulars covering one of their key functions. The following are the
several subjects relevant to the business of most prominent efforts SAMA made for the sector
finance companies were issued. in 2020:
• Keeping abreast of the most important
1.6 Supervision and Control of developments in the area of supervising
Payment Systems and Companies the infrastructure of payment and financial
The payments sector is witnessing changes settlement systems. In this respect, SAMA
in terms of the rapid growth in the quality of adopted, supervised and implemented the
services provided, the introduction of new types relevant principles and recommendations. In
of payment service providers and the rapid addition, SAMA established the Governance
adoption of new digital technologies around the and Oversight Board and the Payment
world. Accordingly, regulators seek to adapt to Systems and Companies Control Department
such changes through developing regulatory and to assume supervision and control of
legislative frameworks that would organize the payment systems and companies subject to
market and enable participants to provide services SAMA’s supervision and governance. SAMA
within a competitive and fair environment. also issued the Payment Systems Oversight
Through the Financial Sector Development Policy and its Supervisory Framework to lay
Program (FSDP), Vision 2030 has set Saudi down the general framework for supervising
Arabia’s path toward promoting local economy by payment systems and the powers exercised by
developing and operating digital technologies in the Central Bank.
all aspects of the economy. • Beginning to issue licenses for non-banking
financial actors (FinTech companies) as SAMA
154
announced the licensing of the first e-wallet
company and the first payment services 1.7 Anti-Money Laundering and
company in Saudi Arabia. Counter-Terrorist Financing (AML/CTF)
• Monitoring the performance of payment SAMA continued to conduct periodic inspections
companies, supporting their commitment to of financial institutions under its supervision
regulations and instructions, and enhancing to ensure their adherence to instructions and
the role of governance and internal control regulations, detect any irregularities, and follow
by providing licensed companies with SAMA’s up with the necessary corrective actions in areas
key feedback. Therefore, companies were such as AML/CTF. SAMA’s achievements in such
required to address any concerns raised and areas include:
develop their systems to achieve a safe and • Organizing the 12th Compliance and Anti-
effective payment environment. Money Laundering Forum, with the aim
• Supporting licensed companies to obtain a of enhancing the level of awareness and
Legal Entity Identifier (LEI). commitment in the field of AML during
• Completing the licensing procedures for 11 the COVID-19 pandemic. In addition to
companies to provide payment services in the relevant topics, the forum explored major
sector, including four e-wallet companies and opportunities and risks associated with
seven payment services companies to provide digital transactions and the international best
different services, such as POS services, bill practices and experiences applied to address
payments via the collection account, and the impact of the pandemic. The forum also
online payment services for merchants. aimed at boosting AML compliance and risk
• Holding more than 40 workshops for management in relevant entities and financial
companies that have expressed their desire institutions to counter the growing challenges
to obtain the license required to engage in and threats and reduce potential risks.
the payments activity. The purpose of the • Continuing to organize workshops and training
workshops was to clarify the requirements of programs for relevant entities to enhance and
the regulations and provide instructions on develop the capabilities of staff working in the
how to fill out the forms in accordance with fields of AML/CTF and to provide them with
the requirements and guidelines contained in technical and professional skills necessary
the regulations. to perform their duties as required and in
• Holding more than 15 workshops for payment accordance with the relevant standards,
companies, after being licensed, to present requirements and international best practices
periodic supervisory and prudential data and and experiences.
provide instructions on how to complete them • Working on issuing the annual application
properly in accordance with the requirements report for the year 2020, which reflects the
of the Payment Services Provider Regulations. most prominent indicators, methods, patterns
The workshops were attended by a number and trends of money laundering crimes. The
of seniors who hold leadership positions in report aims to understand the methods and
the companies, such as the CEOs, compliance techniques of money laundering in Saudi
managers, and finance and risk managers. Arabia according to practical cases submitted
Such workshops have supported companies’ by the relevant entities.
compliance and assisted them in providing • Continuing to hold periodic and extraordinary
SAMA with all documents required. meetings of the Anti-Money Laundering
155
Permanent Committee (AMLPC) virtually to holds meetings to review the progress of

discuss AML topics and issues. These virtual the countries of Africa and the Middle East
meetings came to stress that the spillover included in the lists of countries with strategic
effects of the COVID-19 pandemic do not AML/CFT deficiencies according to the
spread to the work ecosystem. SAMA also assessment of the FATF.
represented Saudi Arabia effectively in all the • Working on a project for virtual assets based
virtual international and regional meetings on six initiatives to regulate the activities
held in relation to the Financial Action Task of virtual assets and virtual asset service
Force (FATF), the Middle East and North Africa providers in Saudi Arabia. Such initiatives
Financial Action Task Force (MENAFATF), and include communication and awareness, legal
their respective task forces. review, risk assessment for money laundering,
• Following up the implementation of the prohibition of illegal transactions, provision of
strategic objectives and the national action training, and issuance of relevant guidelines.
plan for anti-money laundering in coordination The project aims to enhance Saudi Arabia’s
with the concerned entities and the other compliance with international standards and
relevant national committees, in addition to requirements related to virtual assets and
providing support and technical assistance to virtual asset service providers.
the concerned entities.
• Preparing Saudi Arabia’s second follow-up 1.8 Control of Cyber Risks
report that includes Saudi efforts and measures Given the importance of cybersecurity in
in the field of combating money laundering, achieving financial stability and maintaining
terrorist financing and proliferation of consumer confidence in the financial sector, SAMA
weapons since the adoption of the Mutual undertook a number of strategic steps to contain
Evaluation Report (MER) in mid-2018. The and mitigate cyber risks. It issued a comprehensive
report also discusses the progress made cybersecurity strategy for the financial sector
by Saudi Arabia in terms of its compliance based on international best practices and
with relevant international standards and experiences. The strategy encompasses a number
requirements. Saudi Arabia became Largely of strategic objectives and several projects that
Compliant in 38, instead of 36, of the FATF’s aim at strengthening the supervisory role of SAMA,
40 Recommendations. This rating has placed developing its supervisory tools and enhancing
Saudi Arabia among the foremost countries cybersecurity practices in the sector. SAMA also
in complying with international standards in introduced a number of regulatory guidelines, for
such field. example, the Cyber Security Framework, Business
• Starting the process of updating the National Continuity Management Framework, and Financial
Risk Assessment on Money Laundering (NRA). Entities Ethical Red Teaming Framework (FEER). In
The first steps taken in the updating process addition, SAMA established a cybersecurity center
included preparing a work plan and timetable to have a clear forward-looking vision and detailed
and forming a technical team from the information on the cyberspace of the financial
relevant entities to perform risk assessment. sector. The center is responsible for analyzing
• Participating in the meetings of the Joint information about threats, known as threat
Group for Africa and the Middle East of the intelligence. In particular, it monitors and analyzes
FATF’s International Co-operation Review global and regional cyber threats targeting the
Group (ICRG). The Joint Group continuously financial sector in Saudi Arabia and proactively
156
shares relevant information with the sector to economic topics to SAMA’s senior
take the necessary precautionary measures. The management and those concerned with
center also assesses the security resilience of financial and economic affairs to support
the relevant entities by conducting red teaming, sharing ideas between the employees of
applying different scenarios to improve cyber SAMA and other government entities.
readiness in the financial sector. • Organizing, in cooperation with the Capital
Market Authority (CMA), the 5th Financial
1.9 Economic Research and Statistics Stability Forum entitled “The Impact of
SAMA seeks to make its Research and International COVID-19 on Financial Stability”. The forum
Affairs Deputyship an active and completely was held virtually and covered a wide range
reliable intellectual source referred to by others, of topics and issues, such as the current
whether from SAMA or outside. To that end, challenges facing financial stability and the
SAMA encourages the Deputyship to prepare policies and measures taken to respond to
studies and reports of high value and quality in the pandemic and mitigate its financial and
financial and economic fields. It also aspires to economic impacts on financial institutions and
make the Deputyship a source of the latest and the private sector. The forum also focused on
most accurate monetary, banking and financial the new opportunities for FinTech companies
data to keep pace with national and international and medium and small enterprises, the
economic developments. The key achievements deepening of the financial market and the
of the Deputyship include the following: derivatives market, and the levels of liquidity
• Preparing SAMA’s Annual Report, which is and credit in the banking sector, in addition to
a key reference for researchers and those other topics.
interested in the national economy. • Holding a number of internal Ethraa sessions
• Preparing weekly, monthly, quarterly and and workshops to introduce key developments
annual reports and statistics and publishing in Islamic finance at the local and global levels
them on SAMA’s website. Such reports and and to review international best practices in
statistics include the Monthly Statistical control and governance of Islamic financial
Bulletins, Inflation Report, Monetary and institutions.
Banking Developments Report and the • Granting scholarships to a number of
Financial Stability Report. distinguished Saudi employees through
• Striving to meet the requirements of the G20 the “Saudi Economists Program” to obtain
Data Gaps Initiative. master’s and Ph.D. degrees in economics from
• Preparing working papers in various prestigious universities. After finishing their
economic, financial and development fields studies, employees return to SAMA to work
and publishing them on SAMA’s website. in the field of economic studies and research.
• Holding quarterly workshops that aim to • Launching the “Joint Research Program”
enrich knowledge and share ideas with initiative, which supports research
academics, bankers and interested parties. collaboration between SAMA’s researchers, on
Such workshops cover various economic and the one hand, and other external academics,
financial topics and developments. During the subject matter experts and specialists, on the
pandemic, the workshops have continued to other hand. The initiative stems from SAMA’s
be held virtually. interest in developing the economic and
• Making monthly presentations on different financial research ecosystem, and it confirms
157
the importance of research in achieving Saudi with development requirements and economic
Vision 2030. needs, as its work is oriented toward maintaining
• Launching the “Policy Note Initiative” monetary and financial stability and supporting
internally to enable and motivate SAMA’s sustainable economic growth. It constantly
staff to participate in the research ecosystem, coordinates with the authorities concerned
and to enhance the role of researchers in with achieving Saudi Vision 2030 and its related
discussing and proposing some economic programs to explore areas of cooperation and
policies. overcome the obstacles associated with SAMA’s
• Providing relevant entities with specialized functions and responsibilities, in a manner
research papers on monetary, banking and consistent with the requirements of monetary and
financial topics and on SAMA’s projections for financial stability. Saudi Vision 2030 encompasses
the Saudi economy. multiple economic and development goals on
which many initiatives and projects are based.
2. Risk and Compliance One of the main goals is to advance the Saudi
SAMA has been keen to instill the concept of economy to be among the top 15 economies
compliance and risk management in order to of the world in terms of GDP by 2030. This goal
raise awareness on a scientific and technical will be achieved through increasing the private
basis. It has developed a set of methods and sector’s contribution to GDP from 40 percent to 65
mechanisms to address risks and promote risk percent, raising the share of non-oil exports in total
management culture. It has also strengthened non-oil GDP from 16 percent to 50 percent and
the principle of compliance with regulations increasing SMEs’ contribution to total GDP from
and instructions to protect SAMA’s resources. 20 percent to 35 percent by 2030. Another goal
In addition, SAMA has paid significant attention of the Vision is to promote social engagement in
to providing the necessary support that would achieving the national objectives and aspirations,
ensure the continuity of its critical functions, such as increasing household savings from 6
hence fulfilling its well-established objectives and percent to 10 percent of total household income
strategies. SAMA is keen to provide a safe and by 2030. SAMA also strives to support the Saudi
healthy work environment for all its employees Vision 2030 through its participation in the FSDP
in accordance with the preventive measures and the Housing Program.
issued by the Ministry of Health to limit the
spread of COVID-19. Thus, when the outbreak 3.1. Financial Sector Development
first started, SAMA announced the adoption of Program (FSDP)
the detailed procedures to activate the Business SAMA and the main partners in the FSDP
Continuity Plan to deal with the crisis. Such action Committee (the Ministry of Finance and the Capital
positively affected SAMA’s performance during Market Authority) are working on diversifying
the pandemic. In this respect, the Central Banking funding sources, raising the level of financial
Committee has awarded SAMA the Initiative inclusion and enabling optimal financial planning
Award of the Year 2020 for its Business Continuity for all segments of society. The FSDP aims to
Program, which SAMA adopted to respond to the create a vibrant financial sector that contributes
pandemic. to supporting the development of the national
economy, diversifying its sources of income, and
3. Saudi Vision 2030 stimulating savings, financing and investment.
SAMA has continued to fulfill its roles in line Furthermore, the FSDP aims to fulfil the financing
158
needs of a wider range of economic actors. financial products and services in Saudi
SAMA’s key achievements under the FSDP center Arabia. The experiments were conducted
around developing the financial sector and with the participation of a number of banks
raising its contribution to the development of the and FinTech companies operating in the local
national economy, payment systems and modern market.
payment methods. The achievements also • Instructing banks and payment service
include enhancing financial inclusion, developing providers operating in Saudi Arabia to provide
and regulating the real estate finance sector, electronic payment methods for personal
supporting SMEs, developing the FinTech sector, service activities and the retail sector. This
continuing to develop and regulate the insurance direction comes in line with SAMA’s strategy
sector and boosting confidence in the financial for payment systems and the FSDP, with
system. The following is a summary of SAMA’s key the aim of promoting electronic payment,
achievements in the FSDP during 2020: reducing cash transactions and activating the
• Completing 12 out of 16 initiatives owned use of electronic channels.
by SAMA. It is worth noting that the number • Completing the study and development of the
of initiatives of the FSDP is 41, of which 39 operational rules, the design of the payment
percent is SAMA-owned. acceptance service, and provision of the
• Issuing nine guidelines and rules that payment acceptance technology in all public
support FinTech and digital transformation transport projects in Saudi Arabia under the
in the financial sector, such as the Online pivotal deliverables of the “Drive Toward a
Opening of Bank Accounts and Electronic Cashless Society” initiative.
Wallets for individuals, individual institutions • Issuing the Rules for Comprehensive Insurance
and resident companies, the Additional of Motor Vehicles Financially Leased to
Licensing Guidelines and Criteria for Individuals, which aim at regulating the
Digital-Only Banks in Saudi Arabia, and the contractual relationship between the finance
Technical Requirements for Digital Finance companies and their retail clients with regard
Intermediation Activities. The guidelines and to insurance of leased vehicles. The issuance
rules issued also included Rules Regulating of the rules stresses SAMA’s continuing
Consumer Microfinance Companies, Rules of support toward developing the practices
Licensing Finance Support Activities, Rules for applied in the insurance sector, protect the
Engaging in Debt-Based Crowdfunding, Rules rights of insurance policyholders and ensure
Governing Insurance Aggregation Activities fair services.
and Rules Governing Bancassurance Activities. • Starting to grant licenses to practice consumer
In addition, SAMA updated the Payment microfinance activity as the first license for
Services Provider Regulations, which cover a company practicing such activity in Saudi
licensing e-wallets. Moreover, it is working Arabia was issued.
on issuing rules for payment system and its • Launching the trial run of the Instant Payment
services in Saudi Arabia. System, which mainly aims at implementing
• Conducting two successful experiments instant money transfers among banks in Saudi
for online opening of bank accounts and Arabia during off-business hours and 24/7.
e-wallets for sole proprietorships and for In addition, the system offers other benefits
resident companies within the framework of and services, such as the possibility to add
the Regulatory Sandbox that tests innovative payment info details and using alternative
159
identifiers to transfer money. hours to Saturday to serve subsidized real estate

• Announcing the results of Project Aber, finance customers until the end of 2021.
which is a joint project between SAMA and
the Central Bank of the UAE.The project During 2020, the number of new residential real
was launched as an innovative initiative. It estate finance contracts submitted by banks
is deemed one of the first experiments of and finance companies reached 295.6 thousand
its kind in the world at the level of central contracts, compared to 179.2 thousand contracts
banks. The final results of the project were during 2019. The total mortgage loans amounted
consistent with those of similar experiments to SAR 140.7 billion in 2020 compared to SAR
of a number of central banks in proving 79.6 billion in 2019, recording an increase of 76.8
that the distributed records technology will percent.
contribute to providing central banks with the
necessary capabilities to develop payment 4. Human Resources
systems at the local and cross-border levels. 4.1.Training and Development
The final report of the project’s outcomes was SAMA has spared no effort in developing its human
published on the official website of SAMA and cadres through a scholarship program to study
the Central Bank of the UAE. abroad, giving its employees the opportunity to
earn master’s and Ph.D. degrees from a number of
3.2. Housing Program accredited international institutes and universities.
SAMA participates as a member in the Housing SAMA also offers internal and external training,
Program, which is one of the Saudi Vision 2030’s in addition to relevant education and training
programs. It contributes to the achievement of the programs provided by the Financial Academy.
program’s objectives by developing the legislative Moreover, university students specializing in
and regulatory environment in its capacity as the majors relevant to SAMA’s functions can join the
regulator and observer of the real estate finance Cooperative Training Program to prepare for their
sector. During the year 2020, SAMA updated the future careers, or can work at SAMA by assuming
standard real estate financing contracts of Ijarah tasks relevant to their areas of study during their
and Murabaha, which aim to increase the level of summer vacation to gain work experience and
disclosure and transparency, achieve consistency receive training.
between real estate financiers and protect the
interests of customers. SAMA also licensed the SAMA continuously develops its human cadres
Saudi Finance Services Company as the first through a number of programs and procedures,
company licensed to practice finance supporting the most prominent of which are:
activities. The company aims to provide contract • The Investment Immersion Program (IIP),
management services to banks, real estate finance which aims at recruiting investment talent
companies and the Saudi Real Estate Refinance for SAMA. The IIP includes on-job training in
Company, thus reducing contract management international investment banks and companies
costs. In addition, SAMA issued instructions for to develop professional capabilities and
self-build mortgage products, with the aim of personal skills. It also includes job rotation in
protecting customers’ rights and organizing the SAMA to practice investment functions under
process of granting finance by real estate financiers the supervision of experts in specialized
in accordance with the stages of building. SAMA investment fields. In addition, trainees
also agreed to extend the additional working should attend an advanced technical course
160
at the Wharton School of the University of training and learning and were provided with
Pennsylvania, a pioneer in the field of business available solutions to ensure their continued
administration in Philadelphia, USA. Finally, contribution to achieving SAMA’s objectives
they specialize in one of the investment fields under the current circumstances.
and contribute to investment functions at • In its keenness to support, motivate and
SAMA. The number of employees who joined empower women in supervisory positions,
the IIP in 2020 was 16. SAMA increased the percentage of female
• The Professional Learning Partnership (PLP) employees to 13 percent in 2020 compared to
for recent graduates, which aims to train the 11 percent in 2019.
distinguished recent graduates at the General • SAMA launched the third edition of the
Department of Banking Control at SAMA’s Cybersecurity Program (SECURE19), in
Supervision Deputyship. After completing cooperation with Chiron Technology Services.
the training, the trainees are employed by SECURE19 aims to train and qualify a national
SAMA or the banking sector. The training cadre of the financial sector and SAMA’s staff
comprises two parts: a practical section in the field of cybersecurity to work in the
where trainees work and interact with SAMA financial sector and all other sectors.
employees, and a theoretical section where • SAMA developed a plan in 2020 for the hiring
trainees join a number of training courses to and attraction of qualified legal individuals. It
obtain professional certificates in the field. nominated a number of employees for direct
The number of trainees who joined the PLP in scholarship and for attending specialized
2020 was eight. workshops organized by central banks, the
• Five diverse training programs were provided IMF, and World Bank, in addition to other
to SAMA’s staff through the Financial Academy training programs as per the specialized
in 2020. The number of employees who joined training needs of SAMA’s employees.
these programs was 26. SAMA’s steps in this regard were based on
• The Professional Certification Program, which the Council of Ministers’ Resolution No.
aims to boost the employees’ professional side 713, dated 30/11/1438H, stipulating that
and assist them in learning the best practices legal departments at government bodies
in their fields. The total number of employees shall be developed and supported with
who obtained professional certificates was 46. qualified individuals specialized in the legal
• The number of employees on scholarships domain, including Islamic law, and that
abroad was 48 in 2020, and the number of such government bodies shall have plans in
employees studying part-time or through place for appropriate development of their
distance learning was 51. In addition, 31 departments and staff in a way that meets the
students enrolled in the Cooperative Training objectives of their prepared plans.
Program.
• To support and empower SAMA’s employees 5. Social Responsibility
during the pandemic period, various training 5.1. Social Responsibility Strategy
and development solutions have been SAMA’s strategy aims to enhance social
provided, namely online training platforms responsibility by working on four main
and interactive training programs at a number aspects: increasing employees’ awareness of
of regional and international agencies. social responsibility, instilling its principles
Employees were motivated to continue their in organizations’ policies and procedures,
161
launching initiatives and events that support and its initiatives as a top priority to be
social responsibility toward society and publicized in the society. This is followed by
the environment, and motivating the sectors raising awareness among employees in the
supervised by SAMA to develop their social field of social responsibility while fulfilling
responsibility. SAMA’s strategy items placed SAMA’s responsibility toward the financial
attention on all concerned parties, with a focus on sector and working purposefully to improve the
the following aspects: environment. Upon achieving that milestone,
• The community: This includes communicating the focus of the strategy gradually shifts to
with the community, focusing on training, the financial sector as a top priority. The
education and financial awareness programs, improvement in the sector’s ability to assume
paying attention to unemployment, enabling social responsibility demonstrates the distinct
persons with disabilities and supporting the role of SAMA in enabling social responsibility, in
third sector. addition to its work on all aspects in a balanced
• Employees and work environment: This way that ensures promoting social responsibility
includes developing human capital, providing within it and the entities it supervises. SAMA
an attractive and ideal work environment pursues to attain these two phases in order to
in accordance with the best occupational achieve sustainable development and the goals
health and safety standards, paying attention of the Saudi Vision 2030.
to employees’ families, and encouraging
organized volunteer work in areas needed by 5.2. Consumer Protection in the
the society. Financial Sector
• Financial sector entities supervised by SAMA: The Consumer Protection Department aims to
This includes social responsibility at the sector allow financial sector’s consumers to receive fair
level and enabling financial entities to develop treatment characterized by transparency, honesty,
related practices, which will be positively probity and adherence to the legislated laws and
reflected in boosting the sector’s reputation regulations. It also seeks to ensure easily accessible
and effectiveness. Moreover, this aspect and affordable financial services and products
involves the continuing development of of high quality for consumers. Additionally, the
consumer protection- and awareness-related department aims to spread awareness among all
regulations and procedures, in addition to the targeted groups and continue to survey public
giving opportunities to local suppliers to opinion about its work and awareness campaigns.
provide their services to the sector. Such survey is intended to determine how
• The environment: This includes working on successful the department is in communicating
conserving natural resources and reducing the its messages and how much benefit the intended
harmful impact on the environment through recipients receive. Furthermore, the department is
lowering energy consumption and emissions, responsible for handling and processing complaints
reducing paper use, rationalizing water use of financial sector consumers.
and exploring new ideas to preserve the
components of natural environment. During 2020, SAMA continued to receive and
address complaints through “SAMA Cares” system.
The implementation model of the strategy The system allows customers of the financial
consists of two phases. The first phase focuses sector supervised and regulated by SAMA to
on highlighting SAMA’s social responsibility submit their complaints and follow up on them. It
162
also ensures speedy and clear processing. Through for Autism launched “We Cooperate to Create
the system, 390,457 complaints of various types Excellence” campaign. As a token of gratitude,
from customers of banks, insurance companies, SAMA organized “Thank You for Being Rare
financing companies and FinTech companies were Tokens” to thank health and security heroes and
received and processed. Moreover, 858,638 calls volunteers for their actions during the pandemic.
to file complaints or make inquiries were received SAMA also presented many programs that aimed
through the concerned call center. In addition, to activate its social role. Such programs were
SAMA worked on several initiatives to enhance directed toward supporting and developing the
consumer protection in the financial entities local community inclusive of all its components
under its supervision, most notably: and strengthening national capabilities. They
• Launching the SAMA Cares application for included training programs for graduates, health
smart devices. programs, educational programs for employees,
• Launching the instant chat service on the and programs to care for employees’ children and
SAMA Cares website. families.
• Issuing many instructions related to customer
protection, including, but not limited to, a 6. SAMA’s International and Regional
circular directing the financial institutions Participation
(banks, insurance companies and finance SAMA actively participates as a member in various
companies) to make available a toll-free international and regional financial organizations
number to receive complaints, inquiries and and attends their meetings, including the
reports, and a guide for the settlement of meetings of the Group of Twenty (G20), the Bank
total loss in motor vehicles financially leased for International Settlements (BIS), International
to individuals. Monetary Fund (IMF), the World Bank Group,
Financial Stability Board (FSB), Financial Action
5.3. Participation in in Community Task Force (FATF), World Trade Organization
Development (WTO), Arab financial organizations, Islamic
Through continuous awareness campaigns, SAMA Financial Services Board (IFSB), International
contributes to educating and raising awareness of Association of Insurance Supervisors (IAIS), Islamic
the beneficiaries of its services and the services Development Bank (IsDB), and the Accounting
of bodies it supervises. SAMA also engages in the and Auditing Organization for Islamic Financial
most important annual social events observed Institutions (AAOIFI). It also participates in and
globally and locally, through various programs. attends the meetings of Central Bank Governors
This engagement confirms SAMA’s pivotal role in held in member countries of the Organization of
community service. In 2020, SAMA carried out Islamic Cooperation and the Gulf Cooperation
several voluntary social campaigns, initiatives Council (GCC), in addition to the meetings of the
and activities, the most important of which were Gulf Monetary Council (GMCO), International
the issuance of the Instructions for Financial Association of Deposit Insurance (IADI), and a
Institutions on Services Provided for People with number of technical committees and work teams
Disabilities and the launch of “A Little Now for a Lot associated with the Governors’ Committee.
Later” campaign, “Eidiya (Eid gift) Through Bank
Transfers” campaign, and “Our Currency.. Our 6.1 SAMA’s Efforts During Saudi G20
History” competition on the occasion of the Saudi Presidency
National Day. In addition, the Center of Excellence The Kingdom of Saudi Arabia assumed the G20
163
Presidency in 2020, culminating in remarkable in FinTech. The initiative supports innovation and
success and historic outputs and initiatives in solving problems in light of the current pandemic
the Finance and Sherpa Tracks of the G20. The situation.
achievements attained were related to the policy
coordination agenda, finding solutions and With regard to the G20’s efforts in the area of
developing initiatives that enabled the G20 to financial inclusion, the G20—under the Saudi G20
achieve the slogan of the Saudi G20 Presidency Presidency—has succeeded in developing a work
for 2020 “Realizing the Opportunities of the 21st program that focuses entirely on policies related
Century for All”. The G20 also led international to digital financial inclusion, specifically for three
efforts during the Saudi Presidency toward the important groups of society, namely women, youth
urgent collective priority of focusing on combating and SMEs. The Saudi G20 Presidency also worked
the COVID-19 pandemic and overcoming its with G20 countries and relevant international
intertwined health, social and economic impacts. organizations to discuss the best ways to develop
digital infrastructure. As a result, many reports
SAMA’s contribution to the successful Saudi and studies were supported, finalized, and praised
Presidency was through the G20 Finance Track. in the meetings of G20 Finance Ministers and
SAMA worked with G20 member states and Central Bank Governors during the presidency.
relevant international organizations to accomplish The most notable of such outcomes was the
many achievements related to financial policies G20 High-Level Policy Guidelines on Digital
and legislation, finding suitable solutions and Financial Inclusion for Youth, Women and SMEs,
developing initiatives, in accordance with the core which provide a set of distinctive policy options
priorities of the G20 work represented in “Framing that addresses financial inclusion gaps for these
Supervisory and Regulatory Issues for the Digital groups and aims at promoting digital financial
Era”. In addition, a number of core priorities fall services. The purpose is to utilize and share the
under this goal, most notably the agreement benefits of innovations and digitalization and to
on the G20 Roadmap to Enhance Cross-Border create appropriate conditions in which all people
Payments. This is a historic step for the G20 can live, work and thrive, especially in light of the
that aims at improving cross-border payment pandemic and its impacts.
arrangements by facilitating faster, cheaper, more
inclusive and more transparent transactions, The G20, under the Saudi G20 Presidency,
including remittances. managed to identify the remaining challenges
facing the process of phasing out the London
In the context of highlighting technological Interbank Offered Rate Index (LIBOR). It came
capabilities to address challenges related up with the FSB report on supervisory issues
to supervisory and regulatory functions in associated with benchmark transition to facilitate
supervisory authorities and financial institutions, the transition away from the LIBOR index to
Saudi Arabia continued to exert vigorous efforts alternative reference rates.
under the Saudi G20 Presidency in 2020. SAMA
cooperated with the BIS Innovation Hub in the It should be noted that the Saudi G20 Presidency
G20 TechSprint initiative that aims at exploring played an important role in supporting the
solutions to supervisory and regulatory challenges, continued recovery in the global economy,
with the involvement of global parties interested boosting confidence, maintaining financial
164
stability, preventing prolonged economic billion) in 2019. Currency backing decreased by
scarring, and supporting the poorest countries 1.7 percent (SAR 4.5 billion) to SAR 256.9 billion
in facing the impacts of the pandemic. Through in 2020 against a rise of 7.4 percent (SAR 18.0
its achievements, the Saudi G20 Presidency has billion) in the preceding year (Table 12.1).
continued the active role of the G20 as the premier As for liabilities, government deposits and reserves
forum for international economic cooperation. accounted for 23.6 percent of SAMA total liabilities
at the end of 2020 compared with 27.7 percent
7. SAMA’s Financial Position at the end of the preceding year. The government
SAMA’s assets declined at the end of 2020 current account increased by 30.6 percent (SAR
compared to the end of 2019. Total assets 18.2 billion) to SAR 77.9 billion in 2020 against
decreased by 3.5 percent (SAR 66.0 billion) to SAR a decrease of 18.1 percent in 2019. In contrast,
1.8 trillion in 2020 compared to an increase of 0.7 the government reserves fell by 23.6 percent
percent (SAR 12.9 billion) in 2019. Foreign assets (SAR 110.9 billion) to SAR 358.7 billion in 2020
accounted for the bulk of SAMA’s total assets, compared with a drop of 4.1 percent (SAR 19.9
which witnessed a decrease this year. These billion) in the preceding year. However, deposits
foreign assets continued to be invested primarily of government funds and institutions grew by 41.8
in foreign securities, which fell by 6.6 percent (SAR percent (SAR 40.5 billion) to SAR 137.5 billion in
79.5 billion) in 2020 compared with a drop of 0.04 2020 against a decrease of 17.1 percent (SAR 19.9
percent (SAR 0.4 billion) in 2019. Furthermore, billion) in the preceding year. SAMA bills and repos
SAMA deposits with banks operating abroad also increased by 52.8 percent (SAR 65.5 billion)
fell by 22.0 percent (SAR 88.2 billion) in 2020 to SAR 189.5 billion compared with an increase of
compared to a decline of 1.4 percent (SAR 5.7 6.6 percent (SAR 7.7 billion) in 2019.
165
Table 12.1: SAMA’s Financial Position (End of Year)
)Million SAR(
2016 2017 2018 2019 2020
I. Assets
Foreign currencies & gold 234,505 229,188 243,449 261,467 256,944
Cash in vault 34,516 25,831 32,584 42,987 23,276
Banknotes 34,505 25,811 32,561 42,956 23,242
Coins 11 20 22 31 34
Deposits with banks abroad 401,144 377,966 405,572 399,832 311,671
Investments in foreign securities 1,365,189 1,244,669 1,204,035 1,203,576 1,124,051
Other miscellaneous assets 41,517 26,009 14,224 4,945 130,852
Total 2,076,871 1,903,663 1,899,864 1,912,807 1,846,795
II. Liabilities
Currency issued 234,505 229,188 243,449 261,467 256,944
In circulation 199,989 203,357 210,865 218,480 233,668
At SAMA 34,516 25,831 32,584 42,987 23,276
Government deposits & reserves 730,580 641,378 562,367 529,249 436,566
Government current account 89,134 52,192 72,832 59,624 77,873
Government reserves 641,446 589,185 489,535 469,625 358,692
Government institutions & funds’ deposits 154,514 88,346 116,852 96,921 137,452
Statutory deposits for financial institutions 97,839 97,534 99,943 105,470 118,539
Foreign institutions' deposits in local currency 18,490 18,469 17,190 12,249 8,349
SAMA bills & repos 164,755 138,786 116,326 124,007 189,541
Other miscellaneous liabilities 676,187 689,962 743,738 783,444 699,404
Total 2,076,871 1,903,663 1,899,864 1,912,807 1,846,795
166
13
INDEPENDENT
AUDITOR’S
REPORT
Independent Auditor’s Report

TO THE MEMBERS OF THE BOARD OF DIRECTORS OF SAUDI CENTRAL BANK
Opinion
We have audited the financial statements of Saudi Central Bank - formerly (Saudi Arabian Monetary
Authority) - “SAMA”, which comprise the statements of Issuance Department balance sheet, Banking
Operation Department balance sheet, Independent Organizations and Institutions Department balance
sheet, Contra Accounts as at June 30, 2020, the statement of revenues and expenses for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements of SAMA as at and for the year ended June 30, 2020
are prepared, in all material respects, in accordance with the basis of preparation set out in Note (2) to
the financial statements.
Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (“ISA”) as endorsed in the
Kingdom of Saudi Arabia. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of SAMA in accordance with the code of professional conduct and ethics endorsed
in the Kingdom of Saudi Arabia that are relevant to our audit of the financial statements, and we have
fulfilled our other ethical responsibilities in accordance with these requirements.
Emphasis of a Matter-Basis of Preparation

We draw attention to Note (2) to the financial statements, which describes the basis of accounting.
The financial statements have been prepared for SAMA’s financial reporting purposes as per its Board
of Directors’ approved accounting policies. As a result, the financial statements may not be suitable for
another purpose. Our opinion is not modified in respect to this matter.
Responsibilities of Management and Those Charged with Governance for the

Financial Statements
Management is responsible for the preparation of the financial statements in accordance with the basis of
preparation set out in Note (2) to the financial statements, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error. In preparing the financial statements, management is
responsible for assessing SAMA’s ability to continue as a going concern, disclosing, as applicable, matters
relating to the going concern and using the going concern basis of accounting unless management intends
to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing SAMA’s financial reporting process.
168
Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with International Standards on Auditing, as endorsed in the Kingdom of
Saudi Arabia, will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with International Standards on Auditing, as endorsed in the Kingdom
of Saudi Arabia, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of SAMA’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on SAMA’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause SAMA to cease to continue as
a going concern.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
Ernst & Young PricewaterhouseCoopers

Certified Public Accountants Certified Public Accountants
P.O. Box 2732 P.O. Box 8282
Riyadh 11461 Riyadh 11482
Kingdom of Saudi Arabia Kingdom of Saudi Arabia
Rashid S. AlRashoud Bader I. Benmohareb

Certified Public Accountants Certified Public Accountants
Registration No. 366 Registration No. 471
December 10, 2020
(Rabi II, 1442H)
169
SAUDI CENTRAL BANK (SAMA)| BALANCE SHEET

AS AT JUNE 30, 2020 | ASSETS
(Million SAR)
30/6/2020 30/06/2019
ISSUANCE DEPARTMENT
CURRENCY COVER:
Gold (Note 2-e) 1,624 1,624
Investment in securities abroad 273,738 260,940
275,362 262,564
BANKING OPERATION DEPARTMENT
CASH IN HAND:
Bank notes 34,502 38,661
Metal coins 28 14
34,530 38,675
Deposits in local banks 93,442 --
Deposits in banks abroad 350,303 462,969
Investments abroad 1,046,316 1,191,477
Other miscellaneous assets 3,156 2,573
1,527,747 1,695,694
INDEPENDENT ORGANIZATIONS AND INSTITUTIONS DEPARTMENT
Deposits with banks abroad 34,687 72,968
Investments abroad 24,285 37,466
Local investments 21,523 32,734
Deposits with Banking Operating Department 444 854
Deposits with local banks 200 1,200
81,139 145,222
CONTRA ACCOUNTS
Checks under collection & Other 7.2 9.9
The accompanying notes from 1 to 5 form an integral part of these financial statements.
170
SAUDI CENTRAL BANK (SAMA) | BALANCE SHEET
AS AT JUNE 30, 2020 | LIABILITIES
(Million SAR)
30/6/2020 30/06/2019
ISSUANCE DEPARTMENT
SAUDI BANK NOTES ISSUED
In circulation 239,922 223,235
In Banking Operation Department 34,502 38,661
274,424 261,896
METAL COINS ISSUED
In Circulation 910 654
In Banking Operation Department 28 14
938 668
275,362 262,564
BANKING OPERATION DEPARTMENT
Government deposits 490,176 597,521
Foreign organizations’ deposits 9,648 14,385
Government agencies & institutions’ deposits 114,613 119,327
Banks & insurance companies’ deposits 112,974 101,213
Government liabilities 19,269 22,662
Other miscellaneous liabilities & reserves 781,067 840,586
1,527,747 1,695,694
INDEPENDENT ORGANIZATIONS AND INSTITUTIONS DEPARTMENT
Independent organizations & institutions 81,139 145,222
81,139 145,222
CONTRA ACCOUNTS
Liabilities for checks under collection & other 7.2 9.9
SAUDI CENTRAL BANK (SAMA) | STATEMENT OF REVENUES AND EXPENSES

FOR THE YEAR ENDED JUNE 30, 2020
(Million SAR)
30/6/2020 30/6/2019
Revenues 4,454 4,591
Expenses
General & administration 2,343 2,569
SAMA's contribution to the Public Pension Agency (Note 4) 38 39
Total Expenses 2,381 2,608
Surplus transferred to reserve for building of Head Office & branches 2,073 1,983
4,454 4,591
171
SAUDI CENTRAL BANK (SAMA)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
1. NATURE OF OPERATION OF SAMA AND BASIS OF PRESENTATION OF THE

FINANCIAL STATEMENTS
In accordance with its charter, the Saudi Central Bank (“SAMA”) acts as the bank of the Government of the
Kingdom of Saudi Arabia (the “Government”) and also maintains accounts for the Government.
The financial statements are presented for each of SAMA’s following activities:
Issuance Department:
Its main activity includes minting coins, printing national banknotes (Saudi riyal) and supporting the
stability of the currency and fixing its rate internally and externally.
Banking Operation Department:

Assets in the Banking Operation Department include SAMA’s deposits, investments abroad and local
investments in addition to fixed assets. Investment returns are recorded in the Banking Operation
Department balance sheet and not in SAMA’s statement of revenues and expenses. Liabilities include
deposits of the Government, banks and other insurance companies in addition to other miscellaneous
liabilities and reserves.
Independent Organizations and Institutions Department:

SAMA accepts deposits from independent organizations and institutions and invests such deposits
on their behalf. Both the deposits and the value of investments are reported in the Independent
Organizations and Institutions Department balance sheet. Investment income are reported as part
of independent organizations and institutions account and not in SAMA’s statement of revenues and
expenses.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of preparation of the financial statements:
These financial statements have been prepared in accordance with the accounting policies approved by
Board of Directors “BoD” as described below, which are consistent with those followed in previous years.
b. Basis of accounting:
SAMA follows the cash basis of accounting in recording its transactions, except for depreciation of fixed
assets and accrual of certain employee benefits.
The financial statements are prepared under the historical cost convention.
c. Investments:
Investments are carried at cost. At the year end, portfolios managed in different currencies are valued at
the same functional currency as the underlying investment by SAMA at the lower of cost or market value
(historical basis). Decline in fair value is assessed for all managed portfolios on an aggregate basis as one
unit. Differences resulting from the decline in value are recognized in the investment valuation difference
172
account as part of other miscellaneous liabilities and reserves.

Gains or losses are recorded when received/paid in accordance with the policies followed by SAMA.
d. Foreign Currencies:
Translation of foreign currency balances and transactions to Saudi riyals is made using SAMA’s fixed book
rates, which are approved by SAMA’s Governor on July 7, 1986 (Shawwal 29, 1406H), and the subsequent
amendments of Euro and US Dollars rates. Exchange differences are reported in the exchange differences
reserve account as part of other miscellaneous liabilities and reserves.
e. Gold held as currency cover:

In accordance with Royal Decree No. 38 dated August 12, 1973 (Rajab 13, 1393H), gold held as a currency
cover is valued at a rate of one Saudi riyal per 0.20751 gram.
f. Furniture, equipment and motor vehicles:

Furniture, equipment and motor vehicles are stated at cost less accumulated depreciation and are included
in other miscellaneous assets as part of the Banking Operation Department’s balance sheet. The cost of
furniture, equipment and motor vehicles are depreciated on a straight-line basis over the estimated useful
lives of these assets.
g. Lands and buildings:

Lands are stated at cost and buildings are stated at cost less accumulated depreciation. The cost of
buildings is depreciated on a straight-line basis at 5 percent annually. Lands and buildings are included in
other miscellaneous assets in the Banking Operation Department’s balance sheet.
h. Revenues and expenses:

In accordance with Article 2 of its charter, SAMA earns fees for services rendered in order to cover its
expenses. SAMA transfers the excess of revenues over expenses to the reserve for building of head
office and branches account which is shown as part of other miscellaneous liabilities and reserves in the
Banking Operation Department’s balance sheet.
3. FINANCIAL STATEMENTS PERIOD

These financial statements are prepared for the period from July 1, 2019 to June 30, 2020 (Shawwal 28,
1440H to Dhu al-Qidah 9, 1441H)
4. CONTRIBUTION TO THE PUBLIC PENSION AGENCY

Contributions to the Public Pension Agency on behalf of SAMA employees are made in accordance with
Article 13 of the Civil Retirement Regulations issued by Royal Decree No. M/41 dated August 28, 1973
(Rajab 29, 1393H).
5. SUBSEQUENT EVENTS
Subsequent to the date of preparing the financial statements, and as per Royal Decree no. (36/M) dated
November 26, 2020 (Rabi II 11, 1442H), Saudi Central Bank’s Law was approved.
Under this law, “Saudi Central Bank” shall replace the name “Saudi Arabian Monetary Authority” wherever
173
mentioned in related laws, regulations, instructions and orders with all rights and obligations, and shall
maintain the same abbreviation “SAMA”.
174
Classification Number
ISSN: 1319 - 1845
Annual Report Statistics are available on SAMA’s website:

http://www.sama.gov.sa/ar-sa/EconomicReports/Pages/YearlyStatistics.aspx
Annual Report feedback survey is available on SAMA’s website:

http://www.sama.gov.sa/ar-sa/EconomicReports/Pages/QuestionAnswer.aspx
175
W W W.SAMA.GOV.SA

ANNUAL Report 57th 2021

Uploaded by

Copyright:

Available Formats

ANNUAL Report 57th 2021

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ANNUAL Report 57th 2021

Uploaded by

Copyright:

Available Formats

ANNUAL

57th Annual Report

1.The Governor, Dr. Fahad A. Al-Mubarak

2. The Vice Governor, Ayman M. Al-Sayari

3. Mr. Hamad S. Al-Sayari

4. Mr. Abdulaziz M. Al-Athel

5. Mr. Khaled A. Al-Juffali

Postal address: Head Office

01 Global Economy and International Cooperation 9

03 Energy, Industry and Mineral Resources 44

04 National Accounts and Sectoral Development 56

07 Consumer Price Index 85

09 Banking Sector 101

10 Insurance and Finance 117

11 Capital Market 129

12 SAMA Achievements and Aspirations 143

13 SAMA Balance Sheet 167

the Middle East and North Africa (MENA) countries

Global Economy and a growth of 1.4 percent in the preceding year.

Chart 1.1: Real GDP Growth Rates

2017 2018 2019 2020 2021 (Projections)

Table 1.1: Real GDP Growth Rates

Germany 2.2 1.5 2.2 2.6 1.3 0.6 -4.9 3.6

France 1.0 1.1 1.1 2.3 1.9 1.5 -8.2 5.8

Italy 0.0 0.8 1.3 1.7 0.9 0.3 -8.9 4.2

Japan 0.3 1.6 0.8 1.7 0.6 0.3 -4.8 3.3

UK 2.9 2.4 1.7 1.7 1.3 1.4 -9.9 5.3

Canada 2.9 0.7 1.0 3.0 2.4 1.9 -5.4 5.0

China 7.4 7.0 6.9 6.9 6.7 5.8 2.3 8.4

India 7.4 8.0 8.3 6.8 6.5 4.0 -8.0 12.5

Russia 0.7 -2.0 0.2 1.8 2.8 2.0 -3.1 3.8

Brazil 0.5 -3.5 -3.3 1.3 1.8 1.4 -4.1 3.7

Chart 1.2: Change in Consumer Prices in Selected Countries

Table 1.2: Inflation and Interest Rates

Euro area 1.2 0.3 1.4

Emerging & developing economies 5.1 5.1 4.9

Middle East & North Africa 7.4 10.2 11.2

London interbank offered rate (LIBOR)*

U.S. dollar deposits 2.3 0.7 0.3

Japanese yen deposits 0.0 0.0 -0.1

Euro deposits -0.4 -0.4 -0.5

Chart 1.3: Unemployment Rates

Euro area Advanced economies

Table 1.3: Advanced Economies: Unemployment Rates

Germany 3.4 3.2 4.2 4.4

France 9.0 8.5 8.2 9.1

Italy 10.6 9.9 9.1 10.3

Japan 2.4 2.4 2.8 2.8

UK 4.1 3.8 4.5 6.1

Canada 5.9 5.7 9.6 8.0

Bond Markets World Trade and Balances of Payments

Table 1.4: Trends of Fiscal Balances*

Germany 1.8 1.5 -4.2 -5.5

France -2.3 -3.0 -9.9 -7.2

Italy -2.2 -1.6 -9.5 -8.8

Japan -2.7 -3.1 -12.6 -9.4

UK -2.2 -2.3 -13.4 -11.8

Canada 0.3 0.5 -10.7 -7.8

Table 1.5: World Trade and Current Account