HAMAD SAUD AL-SAYARI, Governor of the Saudi Arabian Monetary Agency (SAMA)

Over the years, Governor of the Saudi Arabian Monetary Agency (SAMA) Hamad Saud Al-Sayari has earned a reputation for sound management. At the helm of financial steadiness and modernization initiatives, his driving vision has allowed banks to prosper in the kingdom.

What is your personal view on the Saudi economy and what challenges do you think lie ahead?

The Saudi economy is going through a high-rate growth cycle, based on direct investments, government spending and an expansion in the oil sector. The government has been conducting structural economic reforms for a number of years, starting with the creation of the Supreme Economic Council. We have a very low inflation rate – it has been under 1% for two decades. However, there are many challenges ahead, including the need to create more jobs. We also need to become more competitive in a global economy.

Saudi Arabia has enacted and updated a number of laws in recent years in its bid to join the WTO, including opening up insurance and telecom sectors to foreign investors. What is your view on Saudi Arabia’s accession?

This should have happened a long time ago. One of the fundamentals of the Saudi economy is that it is a very free market, a very open economy. We have open liberal policies; no capital controls, no exchange restrictions. Once we join, I do not expect there will be an immediate negative impact, and it will favor export-oriented industries.

Saudi Arabia has 11 banks out of which seven are partially owned by foreign investors. However, Islamic banking is on the rise. What are the implications?

Islamic banking is the same as conventional banking, but is designed to avoid fixed interest as such. The purpose is to increase the sharing of risk between the investor and the borrower. Nevertheless, there are no free loans. Islamic banking also insists on the time value of money, so the contract or transaction is also designed to ensure investors get returns.

How would you describe the leaders of Saudi Arabia and how do you see yourself?

The country’s leaders are open and internationally oriented, with a great respect for human and cultural values. They want as much peace and prosperity for others as they do for themselves. What I do is a public duty, and my only desire is to serve the people. My country invested in me and educated me, and I am just being a loyal and responsible citizen.