Riyadh, Saudi Arabia – The international credit rating agency S&P Global Rating affirmed its foreign and local currency sovereign credit ratings of Saudi Arabia at ‘A/A-1’ with stable outlook.
The agency indicated in its report that this rating affirmation is a result of the continuation of the Kingdom’s economic and social reform agenda in recent years that will improve its economic resilience and continue to underpin the development of the non-oil sector and fiscal receipts.
The agency forecasted GDP growth to average 3.3% in the medium term, due to the acceleration in non-oil sector investment and robust consumption in the Kingdom.
The agency expects strong growth in construction for Saudi Vision 2030 projects and in the service sector, supported by consumer demand and expanding female workforce. S&P also projects fiscal deficits of around 2% of GDP over the 2024-2027 period.
The agency also praised that Saudi Arabia has embarked on a significant, rapid economic and social transformation program under the Saudi Vision 2030.
In the lead up to 2030, the agency expects to see an acceleration in investment projects that seek to establish new industries, such as tourism, and diversify the economy away from its primary reliance on the upstream hydrocarbon sector.
