as we emphasized in the past - has been limited, thanks to the sound economic policies adopted by the government in past years. In his speech before Majlis Al-Shoura (Consultative Council) this year, the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz stated that Saudi Arabia lauded international efforts aimed at confronting the crisis and participated in the two G20 summits held in Washington and London to contain the financial crisis and limit its affects on the people of the world. He stressed that it is important for the donor countries and international financial institutions to fulfill their responsibilities toward the developing countries, particularly the poor countries that are suffering more than others from the effects of the crisis. Saudi Arabia has supported the measures approved by both G20 summits. Within the framework of its efforts to reduce the effects of the crisis on its economy, Saudi Arabia has continued to follow an expansionary fiscal policy. The 2009 budget includes a 36 per cent increase in investment spending. The value of project contracts approved by the Ministry of Finance during the first quarter of this year (2009) amounted to forty billion and six million Saudi Riyals compared to around twenty billion riyals the same period of preceding year (2007) a growth of around 103 per cent. Net financing provided by government specialized credit institutions amounted to around twenty billion riyals compared to around 9.5 billion riyals in 2007, a growth of around 110 percent. The current expansion of investment expenditure, which covers infrastructure, public services, education, and health sectors, will provide great trade and investment opportunities for the private sector both at home and abroad. We expect contracting firms and suppliers to take full advantage of these opportunities. The sharp fluctuations in oil prices and the global economic recession underscore the importance of adopting sound economic policies that reflect the economic cycle. We shall hear from H.E. Dr. Mohammad Al-Jasser, Governor of the Saudi Monetary Agency, concerning monetary policy. We shall also hear from H.E. Abdullah Ahmed Zainal Alireza, Minister of Commerce and Industry. We also will listen to H.E. Abdul Rahman Al-Attiyah, Secretary General of the Gulf Cooperation Council, who will discuss the broader situation in the GCC countries. Finally, we will hear a perspective from the private sector regarding the domestic economic developments by Mr. Mubarak Al-Khafra, Chairman of the Board of Directors of the National Manufacturing Company and the Saudi-Hollandi Bank. Before concluding my remarks, I would like to state that we are optimistic concerning the future of the Saudi economy. All the indicators support this optimism, and we have noted that the great interest shown by investors in the opportunities provided by our economy, and the large number of visitors to our country as reflected in the number of participants in this conference. In conclusion, I expect this conference to help shed additional light on economic developments in Saudi Arabia within the context of the global financial crisis and unprecedented changes that represent a new phase of a new global financial system. I look forward to fruitful discussions resulting in useful recommendations to help strengthen our country's economy. Once again, I would like to thank all those who helped prepare for and organize this conference, and all those participating in it. Thank you very much. --More
