RIYADH: Saudi Arabia’s economy is forecast to grow at an average rate of 3.9 percent between 2022 to 2026, according to credit rating agency Moody’s Investors Service. In its annual credit analysis, Moody’s affirmed Saudi Arabia’s rating at ‘A1’ with a stable outlook, primarily driven by its robust government balance sheet, underpinned by moderate debt levels and substantial fiscal reserve buffers. The report noted the large stock of proven hydrocarbon reserves with low extraction costs combined with a regulated financial system is also supporting the Kingdom’s sovereign credit profile. Some of the challenges faced by Saudi Arabia include its high economic and fiscal exposure to declines in global oil demand and prices, longer-term risks stemming from the global carbon transition and challenges posed by elevated unemployment, the report further added.