economy continued its march forward during
fiscal year 1420/21 (2000), benefiting from the rise in world
oil revenue increased sharply during the year
which led to achieving the first budgetary surplus since 1982 and a remarkable
surplus in the balance of payments for the second consecutive year.
This was disclosed in the 37th annual report of the Saudi
Arabian Monetary Agency, which was presented here last night to the
Custodian of the Two Holy Mosques , King Fahd
bin Abdul Aziz by Finance and National
Economy Minister Dr Ibrahim al-Assaf.
The general price level remained stable thanks to the monetary
policy pursued to this end.
The private sector made further progress, reflecting the
continuous diversity of its productive base and its reduced reliance on
The report said the banking sector continued to perform well
reflecting the success of
SAMA 's measures to promote its efficiency,
soundness and capital adequacy, with the ultimate objective of raising its
performance level to meet international standards consistently.
A number of new administrative regulations were also
introduced during the year by the
Government to give effect to several structural
reforms made in the Saudi
It is hoped that the Saudi
economy would continue its growth during the
current year 2001 in spite of unfavorable circumstances witnessed by the world
The report said the Kingdoms Gross Domestic Product (GDP) grew
by 4.5 percent and 21.7 percent in current prices. This was largely due to
stupendous growth both in the
oil and non-oil sectors. The
oil sector grew 8.5 percent, while the non-oil
sector recorded a 2.6 percent growth, the report said.
It said the actual public revenues rose by 74.9 percent last
year to SR 258.1 billion while expenditures rose by 28 percent to SR235.3
This brought the surplus to SR22.7 billion, which is 3.6
percent of the GDP, the report said. The Kingdom recorded a deficit of SR36.3
billion the previous year.
The report said the minerals sector had registered a growth
rate of 9.6 percent. The
SAMA predicted similar growth rate for this
According to the report, the industrial sector grew by 3.2
percent, the construction sector 3.5 percent, commercial service sector three
percent, and finance and business sector 2.5 percent.
The report stated that the monetary and banking sectors
achieved a growth of 4.5 percent as bank deposits rose by 7.1 percent and loans
and advances to the private sector by 6.2 percent.
SAMA report said the Kingdom also achieved
surplus in balance of payments for the second consecutive year. The GDP grew by
21.7 percent last year in current prices, compared to 11.5 percent the previous
year, the report said.
The report also highlighted the development and progress of
the stock market, commerce, industry and
roads and telephone lines, human resources and
social services .
It said the market capitalization of shares rose by 11.4 per
cent, from SR 229 billion in 1999 to SR 255 billion in 2000. The number of
shares traded went up by 5.1 per cent from 528 million in 1999 to 555 million in
Commerce, industry and
electricity sectors continued their growth and
development during 2000.
The number of new companies registered by the
Ministry of Commerce during 2000 was 554, with
a total capital of SR 6.2 billion.
The number of industrial units operating in the Kingdom went
up to reach 3,381, with a total capital of SR 293.3 billion and more than