Saudi Arabia can circumvent its challenges | GulfNews.com

Saudi Arabia can circumvent its challenges | GulfNews.com:



"Saudi Arabia’s economy has the necessary financial wherewithal to overcome its several ongoing challenges, which has intensified due to steady dip in oil prices. The challenges include a widening fiscal imbalance, a drop in the Saudi bourse’s index and rising youth joblessness.



The SWF (Sovereign Wealth Fund) Institute puts the value the of Saudi Arabia’s sovereign wealth fund at $677 billion, the fourth highest in the world. The June number represents some 9.4 per cent of total SWFs in the world and the second largest within the Gulf after the UAE.



Saudi Arabia continues to enjoy notable credit ratings such as an AA- from Standard & Poor’s and AA from Fitch Ratings, providing a certain level of comfort for institutional investors interested in purchasing Saudi bonds. Nevertheless, both agencies opted to revise the outlook from stable to negative considering the adverse effects from the plunge oil prices and increased government spending. S&P made the move in February while Fitch followed suit this month."



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