In the name of Allah, it is my pleasure to welcome you all, and I thank you for your presence and participation in the inauguration ceremony of "SIMAH Rating Agency". I also take this opportunity to express my thanks and appreciation to our colleagues at the Saudi Credit Bureau "SIMAH" for their distinguished efforts in developing the company and expanding its functions.
Dear guests
Since the beginning of this century, the Saudi economy has witnessed a remarkable acceleration in the pace of comprehensive and balanced economic development in various parts of the Kingdom. The average annual growth rate of real GDP during the period from 2001 to 2016 was about 3.8 percent. In continuation to support the development process, economic policies, since the approval of the esteemed Cabinet of the Kingdom's Vision 2030, have witnessed a fundamental change with the aim of reaching a diversified and sustainable economy, and an economy capable of overcoming challenges and creating more job opportunities.
In light of the trend towards restructuring the national economy, the banking and financial sector plays an important role in enhancing these achievements. Hence, the importance of continuous development of the sector has emerged in order to be able to serve the economy efficiently. The Saudi Arabian Monetary Auhority plays an important role in this by implementing monetary and banking policies aimed at enhancing financial stability, developing the financial sector and raising its efficiency in providing financial and credit services that are commensurate with the requirements of the economy in all its sectors.
You realize the great importance of developing the infrastructure of the financial and banking sector in establishing effective risk management and enhancing opportunities for enterprises and individuals to obtain appropriate financing. This importance increases with the development of business, financial products, and bank loans granted by financial institutions. Credit information about individual and corporate clients is one of the pillars of the safety and efficiency of credit activity, and the quality of risk management. The Saudi Credit Information Company (SIMAH) collects and presents credit information to members under the supervision of the SAMA in accordance with a clear and fair framework that preserves the rights of credit information owners, and ensures the quality, confidentiality and exchange mechanisms of information, with full adherence to the principles of neutrality and non-interference in members 'decisions.
The availability of financial, credit and other information helps financers to extrapolate the credit behavior of borrowers necessary to draw a clear picture that supports making a sound decision to analyze credit risk and assess the financial solvency of the borrower, be it an individual or a company. This, in turn, leads to a decrease in the percentage of bad loans, an increase in collection rates, in addition to facilitating access to finance at an appropriate cost, which positively affects the rates of borrowing, investment and consumption, in addition to contributing to raising the quality of assets of banks and other financing institutions.
Dear guests
Reliance on rating companies or credit and financial rating companies has increased in our contemporary world, especially after the multiple international financial crises. Therefore, it has become among the requirements for developing the domestic debt market and the financial market in general, the availability of reliable credit and financial rating institutions or agencies. Although our financial market is one of the largest in the region, there is not yet any local company or institution that can play this role.
Today, we celebrate the launch of a "SIMAH Rating Agency" which will operate under the supervision and control of the Capital Market Authority, and aims to provide an independent rating and evaluation regarding the suitability of the financial institution and its ability to fulfill its contractual obligations, or the quality of the securities or financial products it offers. The Authority will assist - God willing - investors in assessing the credit risk of companies seeking to obtain financing through loans or issuing fixed-return securities such as sukuk and bonds.
It is expected that SIMAH Rating Agency, God willing, will have a tangible and important role in serving the financial sector and promoting the development of the financial market, especially when public and private sector projects grow. Therefore, it should have a strong start in order to build a good and reliable reputation among investors, and this is done through the recruitment and attraction of highly qualified and qualified human resources and the use of modern technology.
finally,
I would like to thank the Chairman and members of the Board of Directors of the Saudi Credit Information Company (SIMAH), its executive management and all its employees led by Mr. Nabil Al-Mubarak for their outstanding efforts in establishing the SIMAH Rating Agency. I also thank you all for participating and attending this ceremony and for your good listening, and I wish SIMAH Agency for the classification further progress and success.