Saudi adopts $400bn stimulus plan

Saudi Arabia has confirmed that its economic recovery continues, and that the situation is set to improve during next year, based on IMF assessments that predict that the global economy would grow 2% during 2010.

The kingdom has emphasised that, thanks to the government's investment program, its economy has not been as deeply affected by the global crisis as others.

The Saudi Finance Minister Ibrahim Al-Assaf spoke about his country's participation in the G20 summit, pointing out that the leaders discussed a six-point plan which concentrated on restoring confidence, growth, jobs and repairing the financial system.

Al-Assaf pointed out that the kingdom had allocated a budget of nearly 10% of the national GDP with Spain having the closest similar budget but only at less than half of that of the kingdom.

The Saudi finance minister said that the chief goal is to support the country's economy which in turn benefits the global economy.

Al-Assaf said that supporting the IMF with $250bn was discussed, but dismissed as baseless reports by international news agencies about $90bn offered by the kingdom to support the organisation.

GCC central bank governors are to hold a meeting next week under pressure to set an new timetable for the launch of a single currency with increasing uncertainty about the feasibility of the project. The Gulf Cooperation Council had admitted for the first time that the planned single currency will not be in circulation by 2010 as planned in 2001.