Saudi academician sheds light on global financial crisis

Riyadh, Nov 4, SPA -- Shedding light on the global economic crisis, a
Saudi academician said that the Saudi banks will not be affected by the problems facing the American, European and Asian banks.

He noted, in a statement to SPA, that the loans extended by the Saudi
banks are extended to companies which are linked with governmental
contracts and governmental employees, adding that these loans will
surely be repaid.
Dr Mohammed bin Ibrahim al-Suheibani, the acting dean of faculty of
economy and administrative sciences at Riyadh-based Imam Mohammed bin
Saud Islamic University, said no economic justifications exist for
the impact of the financial crisis.
He pointed out that the measures taken by the state and the
statements spelled out by the concerned officials will weaken any
psychological impact for the global financial crisis on the national
economy.
Meanwhile, Dr al-Suheibani said the global economic crisis might have
a positive impact on the Saudi economy due to the decline of the
prices of the commodities caused by the international economic
stagnancy, adding that stability of prices is one of the major goals
of the Saudi economic policy'.
He expected that the Saudi economy will continue to grow, and this
growth may positively contribute to realization of several goals
including balance in regional development, improvement of the
payments balance at the long term as well as making job opportunities
available.
On the foreign investment in the Kingdom, he said the economic cities
in the Kingdom will attract new investments and will contribute to
the diversification of the base of the national economy.