The Saudi Central Bank, known as SAMA, stated in its latest report that it will remain vigilant in combating potential risks amidst the turbulent global economy.

The Financial Stability Report 2023 highlighted increased financial stability risks due to geopolitical tensions, persistent inflationary pressures, and monetary tightening. However, the bank emphasized that Saudi Arabia will continue to experience growth in 2023, primarily due to initiatives aligned with Vision 2030. SAMA will closely monitor global and domestic developments to maintain financial system stability and resilience. In 2022, the Kingdom reported a real GDP growth of 8.7%, supported by a robust financial system. Banks, insurers, finance companies, and payment providers expanded their services under SAMA’s supervision. The report projected a slower economic growth rate of 3.1% in 2023, attributed to reduced oil-sector growth following OPEC+’s oil output cuts. However, the non-oil GDP is expected to grow, driven by the revival of the tourism sector and Vision 2030 initiatives.

SAMA predicted a slowdown in inflation in 2023, as global commodity and food prices stabilize and the rise in the US dollar curbs upward pressure on imported goods. Saudi banks’ asset growth is projected to continue in 2023, fueled by demand for corporate loans.