Favorable balance and net asset position, with general government balance surpluses estimated at 6.7% and 3.8% of GDP in 2003 and 2004, respectively. Strong external liquidity. The Saudi Arabian Monetary Agency's foreign reserves in 2004 are sufficient to cover 10 months of current account payments (including private transfers). Government has no external debt, nor plans to incur any. Open economy, with a stable exchange rate, low inflation, and a sound banking system. Program of structural reforms being implemented to address remaining weaknesses. Political risks from terrorism, and uncertainty surrounding the political reform agenda and the order of succession. Limited fiscal flexibility, as oil revenues, which account for about 80% of total revenues, are largely determined by oil market conditions. Still-developing
