BofAML's Yazhari Sees Difficult Year for Saudi Banks

The transcript discusses the challenges facing the Saudi economy, including continued drawdown on international reserves and lackluster growth. It highlights the Saudi government's reforms aimed at stemming currency outflow and the potential inclusion of Saudi Arabia in the MSCI Emerging Markets Index. This inclusion is expected to drive significant foreign currency inflows. The transcript also emphasizes the investment opportunities in the Saudi market, especially with the anticipated changes following the MSCI inclusion.

What are some of the challenges the Saudi economy is expected to face in 2017?

• Drawdown on international reserves

• Improvement in asset quality

• Rapid economic growth

• Increase in foreign investments

What is one of the key reforms the Saudi government is implementing?

• Reducing oil production

• Decreasing foreign investments

• Stemming the flow of currency out of the country

• Increasing international reserves

What is the expected impact of Saudi Arabia's inclusion in the MSCI Emerging Markets Index?

• Decline in investor interest

• Reduction in market opportunities

• Significant capital inflows

• Decrease in foreign investments

When is the inclusion of Saudi Arabia in the MSCI Emerging Markets Index expected to be announced?

• June 2017

• June 2018

• June 2019

• June 2020

What is the anticipated investor behavior before the official inclusion of Saudi Arabia in the MSCI Emerging Markets Index?

• Investors will start investing between 2018 and 2019

• Investors will withdraw their investments

• Investors will wait until 2019 to invest

• Investors will not show interest