Riyadh, Saudi Arabia–Standard & Poor’s (S&P) has confirmed Saudi Arabia’s credit rating, both in local and foreign currency, as “A/A-1” with a stable outlook.
The confirmation comes in view of Saudi Arabia’s ongoing efforts to implement significant reforms and achieve structural improvements in recent years, which have supported the sustainable growth of the non-oil sector.
S&P also recognized the Saudi government’s efforts in managing public finances and maintaining a balanced level of public debt, which has further contributed to the credit rating.
The agency expects the Kingdom’s gross domestic product (GDP) to grow by 0.2% in the current year, mainly due to the decline in oil production.
S&P estimates that Saudi Arabia’s growth will increase at a rate of 3.4% between 2024 and 2026. This projection is based on the anticipated rise in oil demand and the promising growth of the non-oil sector.
These positive ratings and outlook reflect S&P’s confidence in Saudi Arabia’s ability to withstand economic challenges and its commitment to economic diversification, moving away from reliance on oil.
The Kingdom’s efforts in implementing Vision 2030, a long-term economic and social plan, have been instrumental in attracting foreign investments, promoting innovation and entrepreneurship, and fostering economic diversification.
Overall, S&P’s confirmation of Saudi Arabia’s credit rating highlights the country’s strong economic fundamentals and determination to achieve sustainable growth amidst global economic challenges.