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Saudi oil sector to contract in '09 - SAMA

By Maria Abi-Habib

Saudi Arabia's oil sector is likely to contract in 2009 but the non oil private sector will grow, Mohammed al-Jasser, head of the Saudi Arabian Monetary Agency, or SAMA, said Wednesday.

"The oil sector, of course there will be a contraction (this year). But in the non-oil sector, particularly the private sector, I don't expect a contraction...(but it) will have positive growth," Al Jasser told reporters at a conference in Bahrain.

Al Jasser also said Saudi's contribution to the International Monetary Fund, to aid countries in need, is contingent upon whether the voting rights of the Kingdom are increased.

The E.U. earlier this month called for doubling the IMF's war chest to $500 billion. The IMF has already used about $50 billion to help countries facing financing problems - including Hungary, Pakistan, Iceland, Latvia and others. On Tuesday, Romanian officials said the country will receive a $20 billion IMF-led support package.

The E.U. wants countries with large foreign-currency reserves, including China and Saudi Arabia, to offer substantial funds in exchange for expanded IMF voting rights.

"If they will increase the quota of Saudi Arabia, of course we will happy to contribute," more money, Al Jasser said. "I expect the quota to be increased. I don't know by how much but there's numbers being thrown around to double the quotas."


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Zawya Dow Jones
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