The appointment of Mohammed al Jasser as the new Saudi Arabian Monetary Authority (SAMA) governor in the sweeping government changes undertaken by King Abdullah took some financial observers by surprise, but the changing of the old guard does not signify fundamental changes in policies.
The departing governor, Hamad al Sayyari, who took over as acting governor in 1983 and was confirmed in the post in 1985, was the longest-serving central bank governor in the world on his retirement, a record that the US Federal Reserve’s “guru”, Alan Greenspan, could not match. Under Mr al Sayyari’s stewardship, SAMA evolved into a respected global player with its prudent regulatory policies, which are now keenly examined by other Gulf central banks in these turbulent financial times.
The early 1980s saw the completion of the “Saudisation” phase of wholly foreign-owned bank branches operating in the kingdom. It was a bold gamble that paid off handsomely for the Saudi banking sector, bringing long-term benefits to both Saudi and foreign partners. It also brought technical expertise, the grooming of future generations of Saudi bankers and the adoption of modern banking practices, albeit at a steep price.
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