“Moody's”, the credit rating agency, expected the Saudi economy to grow at an average rate of about 3.9 percent during the years 2022 to 2026, indicating that the Kingdom's credit strengths derive from the strength of its balance sheet.
According to the agency’s detailed annual credit report to Saudi Arabia, the factors leading to this growth are the result of the continuation of financial control despite the rise in oil prices and the slowdown in the growth of its production increase, the continuation of economic diversification projects, in addition to the structural economic, legal and social measures and reforms implemented by the government to improve the business environment, which will obviously contribute to increasing the growth of private sector investments. “Moody's” indicated that Saudi Arabia's credit strengths derive from the strength of its general budget, which is supported by moderate debt levels and a large financial reserve stock, in addition to a large fixed stock of oil reserves with low extraction costs, and a stable and organized financial system that enhances the strength of its sovereign credit file. It is noteworthy that Moody's, in its credit report last June, updated Saudi Arabia's rating at A1 with a stable outlook, in return for the government's continued control of public financial conditions, implementation of structural reforms, as well as its clear efforts towards enhancing long-term financial sustainability.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
