Standard and Poor’s (S&P) Global Ratings has affirmed Saudi Arabia’s credit rating in long- and short-term local and foreign currency at (A/A-1), while improving the Kingdom’s outlook from stable to positive, citing strong non-oil growth.
In a recent report, the agency said that it affirmed the credit rating for Saudi Arabia due to the Kingdom’s continued efforts towards wide-ranging reforms and investments, which will play a key role in developing non-oil economy and supporting public finances sustainability.
S&P said that the upgrade emphasizes the Kingdom’s resilience against ongoing volatility stemming from the hydrocarbon sector.
Moreover, S&P expected an increased growth in the Kingdom’s non-oil sector over the medium term, owing to the continued implementation of initiatives under Saudi Vision 2030. The agency expected to see an acceleration of investments in infrastructure mega projects and new industries, such as tourism, to diversify economy away from oil.
The rating agency also expected that the ongoing investments will fuel consumption and increase the productive capacity of sectors, such as manufacturing, logistics and mining.
S&P expected that the Saudi GDP will continue to grow through 2024-2027, due to the significant growth in non-oil investments and the rise in consumption rates. The agency also expected that Saudi Arabia will emerge as a more diversified economy over the longer term, with more job opportunities created for youth and wider workforce participation.
