Ashraf AboArafe
The credit rating agency “Moody’s” affirmed in its credit report to the Kingdom of Saudi Arabia (KSA) its rating at “A1” with a stable outlook.
The agency explained in its report that its confirmation of the Kingdom’s classification came as a result of the government’s continued development of fiscal policy and the ability to respond and adapt to fluctuating oil prices, which demonstrates a commitment to controlling public financial conditions and financial sustainability in the long term.
The agency also expected the continuation of positive growth of the Kingdom’s real GDP by 5.0% in the period from 2021 to 2023 on average, supported by further recovery from the Corona pandemic, in addition to the remarkable progress in economic diversification, development and capital projects, and limiting the decline in oil production.
In its report, Moody’s expected the Kingdom’s continued commitment to more fiscal control in the medium term and the continuation of improving spending policy and raising its efficiency despite the rise in oil prices, which shows a more effective framework for public fiscal policy.
Moody’s reports, with its recent assessments of financial institutions in the Kingdom, reflect the positive impact of the structural measures and reforms taken by the Kingdom since the past five years, in addition to the tangible progress in improving the business environment, which positively affected the effectiveness of fiscal policy and raising the efficiency of government work.
