Dr博士. Yahya Alyahya, CEO Gulf International Bank, B.S.C..pptxVIP

Capital Markets Private Sector Development in Saudi Arabia:Focus on Debt Capital Markets Dr. Yahya Alyahya, CEO Gulf International Bank, B.S.C. Session: The Role of Banking Innovative Financing in Competitive Economies Global Competitiveness Forum 2015 Riyadh January 26 – 27, 2015 Trends of the Saudi Private Sector 1 MENA Private Sector Funding Challenges 2 Sizing GCC Long-Term Investment Demand (2014 – 2035) 3 Enhancing the Role of the Private Sector 4 Private Sector Development Opportunities: Saudi Arabia 5 The Role of Financial Development: Focus on Debt Capital Markets 6 Development Challenges Facing the GCC Debt Capital Markets 7 Saudi Arabia’s Long-Term Funding Challenge 8 Unlocking New Sources of Long-Term Finance: The Way Forward 9 The Role of Small Medium-Sized Enterprises in Private Sector Development 10 AGENDA Slide No. Trends of the Saudi Private Sector Composition of GDP (1970 – 2013) Private Sector Contribution to GDP and Budget Expenditures (1970 – 2013) Development of the private sector has exhibited an erratic trend. The private sector is dependent on government spending, which in turn is influenced by the direction of oil revenues. Slide: 1 Source: SAMA MENA Private Sector Funding Challenges Global Funding Patterns (2013) Private Sector Credit to GDP (2013) Middle East Banks constitute the main source of funding for economic development and growth in the MENA region. Private sector credit to GDP in Saudi Arabia is the lowest among the GCC countries and less than third of the world average. GCC AVERAGE Slide: 2 Source: International Monetary Fund $95.9 $175.2 $434.1 $1,021.3 $1,435.6 $3,162.1 Sizing GCC Long-