Moody’s credit rating agency has expected Saudi Arabia’s economy to register an average growth rate of around 3.9 percent during the period from 2022 to 2026.
In an annual in-depth credit analysis report, it said the Kingdom’s credit strengths are derived from its robust government balance sheet, underpinned by moderate debt levels and substantial fiscal reserve buffers, in addition to large stock of proven hydrocarbon reserves with low extraction costs and prudently regulated financial system which strengthens its sovereign credit profile.
Moody’s mentioned the continuity of the government’s commitment to further fiscal consolidation despite elevated oil prices, the slow growth of oil production, the continuation of diversification projects with the critical mass moving into the implementation/construction phase in the next several years, and the structural economic, legal and social reforms that the government has been implementing to improve the business environment in Saudi Arabia that will begin to bear fruit in the form of higher private sector investment growth.
