SAMA Governor: The Saudi banking sector is ready to Aramco IPO

The governor of Saudi Arabian Monetary Agency (SAMA), Ahmad Al-Khulaifi
The governor of Saudi Arabian Monetary Agency (SAMA), Ahmad Al-Khulaifi

Thegovernor of Saudi Arabian Monetary Agency (SAMA), Ahmad Al-Khulaifi, saidthat the International Monetary Fund's (IMF) outlook for Saudi Arabia'seconomic growth mainly depends on the performance of the oil sector, while theprivate sector posted high growth rates in the second half of this year.

Al-Khulaifisaid in an interview with Al Arabiya on the sidelines of the World Bank and IMFmeetings in Washington that data on private consumption, fixed capitalformation, and lending reinforce expectations of higher growth in Saudi Arabia.

Al-Khulaifiexpressed his disagreement with the expectations of the IMF for economic growthin Saudi Arabia, pointing out that economic indicators predict strong growthfor the private sector in the coming period.

Al-Khulaifisaid that the growth of the Saudi private sector recorded 3.4% in the secondhalf of this year.

Al-Khulaifiattributed the deflation in Saudi Arabia to several factors, including thedecline in rents for real estate.

Onthe interest rate outlook in Saudi Arabia, Al-Khulaifi said that the decisionto cut rates depends on global growth and the actions of the US FederalReserve.

Al-Khulaifisaid he did not expect much impact from the rate cut on Saudi banks' profitmargins.

Regardingthe IPO of "Aramco," the governor of SAMA said the banking sector isready to subscribe once it is officially announced.

Al-Khulaifisaid deposits with the banking sector are sufficient to fund Aramco's IPO.

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