S&P Affirms Kingdom’s Credit Rating at A/A-1

Sanaa Hasan March 17, 2024

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S&P's Confirms Kingdom's Credit Rating at A/A-1 — Credit rating agency Standard & Poor's (S&P) has affirmed Saudi Arabia's credit rating in local and foreign currency at "A/A-1" with a stable outlook

Credit rating agency Standard & Poor’s (S&P) has affirmed Saudi Arabia’s credit rating in local and foreign currency at “A/A-1” with a stable outlook, according to its recent report.

Table of Contents

Continued Economic Reforms

S&P clarified that this affirmation stems from Saudi Arabia’s continued efforts in economic and social reforms in recent years, impacting its economic resilience and contributing to the non-oil sector growth and public revenue uplift.

Growth Projections

The agency expects Saudi Arabia’s GDP to grow at an average rate of 3.3% during the years 2024-2027, driven by significant economic diversification and non-oil sector investments alongside strong consumption growth.

Vision 2030 Projects

S&P highlighted the escalating growth expectations in Saudi Vision 2030 projects and service initiatives. It is also supported by rising consumer demand and the activation of women’s role in the Saudi labor market. The agency predicts the fiscal deficit to reach 2% of GDP during 2024-2027.

Transformation Efforts

Furthermore, the agency acknowledged Saudi Arabia’s extensive efforts in economic and social transformation programs under Vision 2030. lt anticipates an acceleration in investment projects diversifying its economy away from hydrocarbon dependence.

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