Saudi Arabia & KAUST - National US-Arab Chamber of Commerce

Ministry of Petroleum and
Minerals: A Resource for Saudi
Arabia and the Globe
The global crude oil market is in good
shape, says H.E. Ali Ibrahim Al-Naimi,
Saudi Arabia’s Minister of Petroleum and
Mineral Resources. During a recent meeting
of the Organization of Petroleum Exporting
Countries (OPEC) in Vienna, Austria, Minister
Naimi noted that with prices between $68
and $73 a barrel, “The price is good for
everybody – consumers and producers. The
market is very well supplied.”
A recent International Monetary Fund
report praises Saudi Arabia for its leadership
role in stabilizing international oil markets.
As the world’s leading producer and exporter
of oil, Saudi Arabia’s policies have a significant
impact on the global energy market, as well
as the global economy.
Fully aware of this responsibility, the
Kingdom and the Ministry of Petroleum and
Mineral Resources are committed to ensuring
the stability of oil supplies and prices. At the
2008 G-20 meeting, H.M. King Abdullah
stated, “Saudi Arabia has made many sacrifices
seeking to promote global economic
growth in a manner that serves the interests
of all parties.”
“Saudi Arabia has made many
sacrifices seeking to promote
global economic growth in
a manner that serves the
interests of all parties.”
The Ministry of Petroleum and Minerals
was established in 1960 to execute the
Kingdom’s policies related to oil, gas and
minerals. It supervises its affiliate companies
– such as Saudi Aramco, Saudi Texaco, Aramco
H.E. Ali Ibrahim Al-Naimi
Gulf Operation Ltd., and Saudi Arabian
Mining Company (Ma’aden) – and it monitors
exploration, development, production, refining,
transportation, and distribution related to
petroleum and petroleum products.
H.E. Ali bin Ibrahim Al-Naimi, a graduate
of LeHigh and Stanford Universities in the
United States, was appointed Minister in 1995.
Under his leadership, Saudi Arabia has made
extraordinary efforts to keep oil prices reasonable
while ensuring a consistent supply of
petroleum to the global marketplace.
Saudi Arabian Monetary
Agency: Staying The Course,
Staying Solvent
The Governor of the Saudi Arabian
Monetary Agency (SA M A), H.E.
Mohammad Al-Jasser, recently presented
SAMA’s 45th Annual Report to H.M. King
Abdullah. According to the report, the
Saudi national economy is strong, banks
are well-poised to weather the global financial
crisis, and lower inflation rates will
help stimulate opportunities for the
Kingdom’s future growth.
SAMA, the central bank of
Saudi Arabia, has demonstrated
its unwavering commitment
to sound monetary policies.
SAMA, the central bank of Saudi Arabia,
has demonstrated its unwavering commitment
to sound monetary policies and strict regulation
of the Kingdom’s financial sector since
it was established in 1952.
At the time, Saudi Arabia was
a f ledgling nation without a
monetary system of its own.
Foreign currencies were used as
a means of exchange, along with
Saudi silver coins. Saudi bank
notes had not yet been issued.
SAMA’s first task was to develop
a currency and set up a national
banking system. Saudi Arabia
converted to the Saudi Riyal in 1961.
During the 1970s and 1980s, as the oil
economy boomed, SAMA focused on controlling
inflation, expanding the banking system
and managing foreign exchange reserves. As
of the mid-1980s, SAMA’s priorities shifted
to introducing financial market reforms,
supervising commercial banks, managing
foreign exchange reserves, and encouraging
the presence of international banks in the
Kingdom.
Today, SAMA has earned an excellent
reputation as a banking regulator, both within
H.E. Mohammad Al-Jasser
Saudi Arabia and abroad, in part for the steps
that it has taken to combat terrorism financing.
Saudi Arabia is a signatory to the International
Convention on Combating Terrorism.
At a recent meeting in London of the Group
of 20 to discuss the state of the world economy
and banking amid the current economic crisis,
SAMA Governor Al-Jasser urged member
countries to adhere to the established oversight
regulations. “We hope they rely on the supervision
policies that were agreed upon during
the summit in London in order to avoid such
crises in the future,” Al-Jasser admonished.
© REUTERS/Stringer
US-Arab Tradeline • Fall 2009 27