Middle East and Central Asia > Saudi Arabia

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Abdullah Al-Hassan
,
Imen Benmohamed
,
Aidyn Bibolov
,
Giovanni Ugazio
, and
Ms. Tian Zhang
The Gulf Cooperation Council region faced a significant economic toll from the COVID-19 pandemic and oil price shocks in 2020. Policymakers responded to the pandemic with decisive and broad measures to support households and businesses and mitigate the long-term impact on the economy. Financial vulnerabilities have been generally contained, reflecting ongoing policy support and the rebound in economic activity and oil prices, as well as banks entering the COVID-19 crisis with strong capital, liquidity, and profitability. The banking systems remained well-capitalized, but profitability and asset quality were adversely affected. Ongoing COVID-19 policy support could also obscure deterioration in asset quality. Policymakers need to continue to strike a balance between supporting recovery and mitigating risks to financial stability, including ensuring that banks’ buffers are adequate to withstand prolonged pandemic and withdrawal of COVID-related policy support measures. Addressing data gaps would help policymakers to further assess vulnerabilities and mitigate sectoral risks.
International Monetary Fund. External Relations Dept.
Antoinette Sayeh interview, IMF clarifies surveillance process, Georgia loan, Olivier Blanchard interview, Africa's financial sector, EMU slowdown, EU transfers, sovereign wealth fund principles, United Kingdom outlook, Uruguay's financial issues, Saudi Arabia's oil bonanza, news briefs.
International Monetary Fund. External Relations Dept.
Entretien avec Antoinette Sayeh; le FMI précise son rôle dans la surveillance; la Géorgie; entretien avec Olivier Blanchard; secteur financier en Afrique; ralentissement dans l'UEM; les transferts de l'UE aux PECO; principes pour les fonds souverains; Royaume-Uni; Uruguay; Arabie Saoudite; l’actualité en bref.
International Monetary Fund. External Relations Dept.
Entrevista a Antoinette Sayeh; El FMI define la función de supervisión; Georgia; Entrevista a Blanchard; Sector financiero africano; La UEM frente a la desaceleración; Mayor convergencia gracias a la UE; Fondos soberanos de inversión; Shock para el Reino Unido; Política monetaria uruguaya; Bonanza petrolera en Arabia Saudita; Notas breves.