Saudi economy to grow 3.9% at average in 2022-2026, says Moody's

The Kingdom of Saudi Arabia's flag

Moody's credit rating agency issued its annual in-depth credit analysis report, saying that it expects Saudi Arabia's economy to grow at an average rate of around 3.9% from 2022 to 2026.
 

It added that the factors behind its medium-term growth projections include 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 and 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.
 

The report highlighted that Saudi Arabia'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 strengthen its sovereign credit profile.
 

Moody's updated its credit report for Saudi Arabia last month, affirming its “A1" rating for the Kingdom with a stable outlook as a result of the government's commitment to fiscal consolidation and continuous structural measures and reforms toward long-term fiscal sustainability.​