Saudi Arabian Monetary Authority’s (SAMA) 59th Annual Report Unveiled

CMA & SAMA - KSA

Feb 12

The Saudi Central Bank (SAMA) published its annual report recently that overlooks the latest development in the Saudi Economy during fiscal year 2022. SAMA reports that Saudi Arabia achieved the highest growth rate among the G20 countries in 2022, with a growth rate of 8.7 percent. The average inflation rate had been around 2.5 percent. The growth was attributed to an increase in oil activities, non-oil activities, and government initiatives.

Banking Sector

Commercial banks have recorded an increase in profits. The number of commercial banks operating in Saudi Arabia stood at 36 at the end of 2022. One of the major achievements reported by SAMA was the granting of a license to D360 Bank (digital bank).

The Capital Adequacy Ratio of the banks stood at 19.1 percent (above the recommended Basel 10.5%) in Saudi Arabia. The table presented shows a number of 19.9 percent. We assume this is a mistake and should be 19.1% as reported.

Insurance Sector

The number of insurance/reinsurance companies in Saudi Arabia was 28 at the end of 2022. Gross Written Premiums (GWP) experienced robust growth, with an increase of 26.9 percent compared to the previous year. In addition, SAMA issued 22 circulars related to all regulatory aspects of the sector.

Domestic Stock Market

The Tadawul All Share Index (TASI) experienced a year-over-year decline of 7.1 percent, closing at 10,478.5 by the conclusion of 2022. Concurrently, the volume of shares traded witnessed a decrease of 34.2 percent, amounting to approximately 45.1 billion.

Other

SAMA also presented an overview of the finance companies with final authorization up to the end of 2022.