Fitch Ratings noted the positive future directions of the financial policies that Saudi Arabia seeks to pursue as an extension of the measures and structural reforms it has taken during the past five years in accordance with the objectives of "Vision 2030".
The agency indicated that the Kingdom's retention of large financial reserves is supportive of its classification, and provides greater flexibility to facilitate public financing needs, in light of the instability of oil revenues.
Fitch acclaimed the preliminary statement announced by the Saudi Ministry of Finance for the Kingdom's general budget next year, which addressed targeting a financial reserve in the Saudi Central Bank of 350 billion riyals ($93 billion) in 2022, which constitutes about 11 percent of GDP. According to Fitch estimates, with expectations that it will rise in the medium term, after it predicted its stability at a minimum level of 265 billion riyals ($70 billion) in 2022-2023.
Fitch noted, emphasizing the positive future directions of the Kingdom's financial policies, which reflects positively on the great global confidence in the strength of the Saudi economy, and supports a positive outlook on the future of financial sustainability.
Source (ASharq Al-Awsat Newspaper, Edited)
