Economic discussion

        A moderate growth continues in the region of Middle East, Pakistan, Afghanistan and North Africa. The countries who export oil are in great advantage because prices of oil have risen. Growth in Central Asia and Caucasus has crossed the expectations of 2017 but the percentage seems to decline in year to come. Financial conditions are getting tightened globally which in turn is results in increased tension for trade. The increasing challenge globally is accelerating the need of reforms in private and government sectors of the region. (Imf.org, 2015)

        The Saudi Arabian banking industry is center most commercial industry of region and there are number of factors in this industry which require being resolved. The Kingdom of Saudi Arabia has the Saudi Arabia Monetary Agency (SAMA) which monitors all the local and foreign banking of the country. The successful working of SAMA has resulted in significant breakthrough of economic suffering and brought out KSA from economic recession. No legal international banking is done without getting a proper license from SAMA. Despite, no action is taken against authorities who fail to perform according to action plan of SAMA. (Cnbc.com, 2018)

        The currency value of Saudi Arabia has fallen in last 2 years and its international bond prices have fallen. Since September 2016, the price of Riyal has not fallen down as it is now. Riyal is equal to 3.7524 US dollars. Traders said that the investors bought stocks in lower places. The journalist killing case, war on Yemen, embargo on Qatar and arrest of several businessman and politicians, detainment of activist of women’s right, tensions with Germany and Canada. The economic risk are rising which result in decreased investment thus the value of currency falls.

References of Economic discussion

Cnbc.com. (2018, October 15). UPDATE 2-Saudi currency at weakest in two years on Khashoggi case. Retrieved from https://www.cnbc.com/2018/10/15/reuters-america-update-2-saudi-currency-at-weakest-in-two-years-on-khashoggi-case.html

Imf.org. (2015). Middle East and Central Asia. Retrieved from https://www.imf.org/en/Publications/REO/MECA/Issues/2017/01/07/Middle-East-and-Central-Asia