With a stable outlook, credit rating agency S&P Global has upgraded Saudi Arabia’s local and foreign currency credit rating to A+, according to the Saudi Press Agency.
The agency’s upgrade is driven by the Kingdom’s bold strides in economic diversification, the growth of non-oil sector, as well as the development of the local capital market.
According to S&P Global, these factors help offset the risks associated with rising external sovereign debt. Currently, this debt is being strategically invested to fulfill the objectives of Saudi Vision 2030 while managing debt servicing costs.
Crucially, the agency commended the Kingdom’s strategy to stimulate several investments in order to boost non-oil growth prospects and economic resiliency over the medium term.
Accordingly, S&P forecasts that real gross domestic product (GDP) growth may average 4% over 2025-2028.
Furthermore, it anticipates that the Kingdom’s fiscal deficit can average 4.2% of GDP during the same period. It also expects that the Kingdom will maintain its good net asset position.
These expectations are basically due to Saudi Arabia’s transformational spending to accelerate economic diversification.
Over the past few years, the Kingdom has secured several credit rating upgrades from global rating agencies.
These advancements stand as a testament to Saudi Arabia’s commitment to promoting institutional strength and accelerating the implementation of structural reforms.
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