Saudi economy sees no adverse impact from turmoil

RIYADH, Mar 1 (Reuters): Saudi Arabia's economy has not seen any adverse impact from turmoil that rocks the Arab world and the OPEC crude producer will start implementing new social measures today (Tuesday), its finance minister said Tuesday. The world's top oil exporter has escaped so far popular revolts that toppled entrenched leaders in Egypt and Tunisia and now challenge autocratic regimes in Libya, Bahrain and Oman. "We have not seen any adverse impact on the Saudi economy," Ibrahim Alassaf told reporters. He earlier told a financial conference that the economic and financial situation in the desert kingdom was stable after the regional unrest cast a shadow over investors outlook on markets across the Gulf. Saudi stocks have suffered from the jitters, slipping to nine-month lows this week, while Saudi currency forwards are near their weakest levels in two years. Debt insurance costs have also risen across the Gulf, the world's top oil exporting area. King Abdullah unveiled benefits for Saudis worth around $37 billion after returning home last week after three months of medical treatment abroad. "There will be immediate execution (of the king's measures)," Alassaf said. Part of the king's handouts will go to new funds to help Saudis to get housing loans, a pressing issue for the Gulf Arab state's rising native population of 18 million and where over 10 per cent of locals are unemployed. Alassaf also said spending would rise this year following the king's measures but that it was too early to say by how much, adding budget revenue would increase. Saudi Arabia plans to draw on its reserves to help fund the new social benefits, he said on Sunday. Net foreign assets in the largest Arab economy reached a record high of 1.67 trillion riyals in January ($445 billion), nearly 9 per cent up from the previous year on robust oil prices.