Assaf's address at the Energy Dialogue: "I am delighted to participate in this inaugural conference by King Abdullah Petroleum Studies and Research Center (KAPSARC). For this, I would like to thank the chairman and the management of KAPSARC for inviting me to address this distinguished gathering. Referring to an exceptionally dangerous phase facing the world economy, and especially the global financial system, Dr Al-Assaf said "Today, serious downside risks to global growth are clear and persisting. The European crisis remains the central challenge to global growth with multiple spillover effects. Saudi Arabia has been able to better withstand the headwinds of the crisis from its outset and, if worse comes to worse, I am confident that we have the means to deal with any renewed challenges. A lesson learned from the EU crisis is that fiscal prudence and even unity might be the required step to follow the monetary union. Financial market reform is necessary and requires further deepening, be it at the level of derivatives trading, better regulation of hedge funds as well as rating agencies. Liquidity and confidence go hand in hand and Central Banks have to maintain their resilience and vigilance of markets and draw effective and immediate policy responses," Dr Al-Assaf added. "The new ECB President, Mario Draghi, has indeed challenging tasks ahead of him and we hope that he would be able to deal with such challenges. Emerging and developing economies as well as those impacted less by downside risks should not become complacent either. Reform is a necessity for all," he noted. --More
