Saudi Arabia's economy is slowly improving but growth comes mainly from government spending and growth in lending to the private sector will only reach healthier levels next year, bankers said.
Speakers at the Reuters Middle East Investment Summit in Riyadh said the top Arab economy is gradually shaking off any impact of global turmoil but banks would remain cautious to lend following the central bank's request that they raise provisions.
Major Saudi banks saw profits dropping in the third quarter after central bank governor Muhammad al-Jasser said banks should make provisions cover more than 100 percent of the non-performing loans."
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