Saudi Arabia's economy is solid and has proven capable of facing the ripples of the global economic crisis since 2008, said Dr. Ibrahim Al-Assaf, Finance Minister. The Saudi economy has continued posting growth at a time when the economies of other nations are suffering from recession, said the minister in a statement addressed to the energy dialogue forum, held here late Monday. The Kingdom continues to play a major economic role on the international stage, namely with the G-20 nations, the IMF and other agencies, he said. The European financial crisis remains the “pivotal challenge to international economic growth,” and it has affected the economies of many nations, however Saudi Arabia has succeeded in “withstanding the winds of the crisis since its outbreak and remains capable of coping with any new challenges,” the minister stressed. “If worse comes to worst, I am confident that we have the means to deal with any renewed challenges,” Al-Assaf said. “Notwithstanding the looming challenges facing the global economy, I am confident that Saudi Arabia's immediate and medium term growth prospects remain strong,” he said. Robust oil prices and increased government spending are expected to propel the economy of the world's top crude exporter to 6.2 percent growth this year, from 4.2 percent in 2010, before a slowdown to 4.5 percent in 2012, a Reuters poll showed in September. The minister also said the euro zone sovereign debt crisis remained “the central challenge to global growth with multiple spillover effects,” adding that Europe should help itself. “Time is of the essence for Europe, as tightening liquidity conditions are beginning to resurface globally, which fuel additional volatility,” he said. “I believe the Europeans have to deal themselves with the crisis.” Saudi Arabia has announced that it will spend an estimated SR500 billion, or nearly 30 percent of its economic output, on various social measures including new housing projects.
