Economic analysts speak on Saudi Economy and Banking Institutions 2 Riyadh

On his part, Dr Yousef al-Shibeili, a professor of comparative
Islamic jurisprudence at the higher judicial institute, said the
Kingdom will not be affected much by the crisis.

He lauded the wise measures undertaken by the officials to contain
the impact of the crisis.

On the other hand, Mohammed al-Shimeimari, a financial analyst and
member of the national union for American securities, said the
conservative policy of the Saudi Arabian Monetary Agency has yielded
positive results.

He noted that this policy was further enhanced by the statements of
the concerned officials about the financial situation.

Al-Shimeimari attributed the financial crisis to several elements
including the philosophy adopted by Alan Greenspan, the former
Chairman of U.S. Federal Reserve.
That philosophy was based on the liberation of the markets from the
systems that block their expansion and dealings in a manner that led
the investment companies to extend loans which were more than 30
times of their capital.

Recently Greenspan confessed before the Congress that his philosophy
has played a major role in this crisis.


Al-Shimeimari pointed out that the current crisis will take some
time for resolution as the case of the international financial crisis
which occurred in 1967.


--SPA