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Financial System 

FINANCIAL RESOURCES

A sound, efficient and liberal financial system is essential for the Kingdom's economic development process and the attraction of foreign investment into the country. Therefore, the Saudi government has created a well-structured financial system made of the following:

(1) Saudi Arabian Monetary Agency (SAMA):

Saudi Arabian Monetary Agency is the Central Bank of the Kingdom. SAMA monitors the operations of commercial banks and the Saudi stock market, issues the currency, determines the money supply, and manages the country's financial reserves. (See Address )

(2) Commercial Banks:

Commercial banks in Saudi Arabia evolved through branches of foreign banks. The National Commercial Bank is the first Saudi bank in the Kingdom, It was established in 1953 followed by the opening of Riyadh Bank in 1957 Saudization of the banking system began in the mid 1970's and was accomplished in the early 1980s. There are twelve commercial banks now operating in the Kingdom. Some of these banks are totally owned by Saudis and some are joint ventures with foreign banks with hundreds of branches in major cities of the Kingdom. 

(3) Government Specialized Investment Funds:

These funds, mentioned above, were established by the government and are financed through budgetary appropriations. Their main function is to provide medium and long-term loans to private and public projects. ( See Address )

(4) The Non-Bank Financial Institutions:

These financial institutions function mainly in investment, insurance, and money exchange. Listings of these institutions can be obtained from the Saudi Chambers of Commerce and Industry.

Regulations affecting foreign investment in Saudi Arabia are provided in the next chapter.

 

Sources: saudi commercial office, Saudi Embassy