As the impact of the global economic crisis was biting hard across the Arabian Gulf, Saudi Arabia was considered by many to be one of the better placed economies to handle the fallout. It had avoided the spectacular and damaging real estate bubble of the United Arab Emirates while amassing $500bn of foreign assets and significantly reducing its debt.
The traditional, conservative investment policy of the Saudi Arabian Monetary Agency (Sama) – which tucks the majority of the nation’s surplus wealth away in US Treasury bills rather than equities – appeared prescient as sovereign wealth funds around the region suffered heavy losses. The kingdom also benefits from a population of 24m that dwarfs its neighbours and helps drive domestic demand.
