Robust government finances, underpinned by fiscal discipline and a sharp reduction in central government debt. Strong external liquidity, with foreign exchange reserves in 2005 sufficient to cover 12 months of current account payments (including private transfers). Good progress in implementing structural economic reforms. An open economy with a stable exchange rate, low inflation, and a sound banking system. A narrow economy compared with higher-rated peers, with a strong economic and fiscal dependence on the hydrocarbons sector. A relatively large state sector, providing the bulk of domestic investment and employment. The slow pace of political reform. The ratings on the Kingdom of Saudi Arabia primarily reflect the government's strengthened external financial position. Foreign reserves of the Saudi Arabian Monetary Agency (SAMA)
