The ratings on the Kingdom of Saudi Arabia are supported by: Macroeconomic stability. Despite several external shocks, the Kingdom has maintained stability in its highly open economy--in particular, a stable exchange rate, low inflation, and a sound banking system. Ambitious reforms to liberalize the economy further, strengthen its institutional capacity, and prepare for accession to the World Trade Organization (WTO) are well under way and should contribute to further economic resilience. The Saudi Arabian Monetary Authority (SAMA) has earned a good reputation as a banking supervisor, with standards in line with international best practice. Substantial external liquidity. The government has built a substantial cushion of foreign assets. At year-end 2002, foreign exchange reserves held by SAMA stood at about $42
