The Role of Central Bank of Saudi Arabia in the Global Crisis Dissertation

The Role of Central Bank of Saudi Arabia in the Global Crisis - Dissertation Example The experience of the banking system of Saudi Arabia during the global financial crisis which ravaged the financial markets globally since mid-2007 is required to be answered. While many economies around the globe were negatively and severely affected, especially developed countries, during the crisis in 2008 and 2009 but the Saudi economy has shown resilience and strong growth of the economy. The experience of Saudi Arabia in respect of domestic financial intermediation and international banking was relatively positive during this tough time. Though being affected moderately by the deteriorating conditions of global financial markets, the domestic financial market of Saudi Arabia continuously functioned in an efficient and effective manner. The Central Bank of Saudi Arabia has played a vital role in keeping the strength of the economy during the crisis period. So, the hypothesis to be tested is the measure taken by the Central Bank of Saudi Arabia to maintain sound economic growth d uring the crisis period also.Economic developments of Saudi Arabia during 2008 and 2009 During the five year period 2004-08, the economy of Saudi Arabia fared well by international standards reflecting 4.4% growth rate in real GDP and 19% average surplus in government fiscal. All economic sectors were propelled with this, especially the banking sector which showered great benefits. In 2008, growth in real GDP was 4.5% with 4.8% growth in the oil sector.