The Saudi central bank, the Saudi Arabian Monetary Agency (SAMA), has announced that the recent slump in oil prices had not hurt the country's economy.
In a rare statement, Governor of the Central Bank Fahd al-Mubarak expressed his “confidence in the steadfastness of the Saudi economy in the face of the oil price decline in the medium term.”
The governor’s comments come amidst reports of potential massive losses in revenues by the countries that mainly export oil.
Saudi Arabia is the number one economy in the Middle East in terms of size, but that’s mainly due to its 10.5 million barrels of oil being produced on a daily basis.
The massive amounts of oil pumped daily by Saudi Arabia and its Persian Gulf allies have negatively impacted global crude prices.
In the past, the UAE, Saudi Arabia, and other Arab countries have denied being hurt by the decline in oil prices.
But, recent reports and historic economic reforms made by Persian Gulf governments, most notably Saudi Arabia's decision to allow foreign investors for the first time, have pointed out to harmful effects of low oil prices.
Although crude has recovered from its low of $44 a barrel in January, it still hasn’t reached its highs of $110 a barrel last year.
US crude oil closed at $58.98 a barrel, up almost a dollar, and Brent oil was at $65.03, up a dollar on Wednesday.