S&P Global Ratings Affirms Saudi Arabia’s ‘A/A-1’ Ratings with Stable Outlook
In a recent announcement, international rating agency S&P Global Ratings has upheld Saudi Arabia’s foreign and local currency sovereign credit ratings at ‘A/A-1’ with a Stable Outlook.
Economic and Social Reforms Driving Resilience
The agency attributed this affirmation to the Kingdom’s successful implementation of economic and social reform measures in recent years. These reforms are seen as crucial in enhancing Saudi Arabia’s economic resilience and strengthening the non-oil sector as well as fiscal revenues.
Growth Forecasted in Non-Oil Sectors
With a surge in non-oil sector investments and robust consumer spending, S&P Global Ratings predicts an average GDP growth rate of 3.3% in the medium term for Saudi Arabia.
Positive Outlook for Saudi Vision 2030 Projects
The agency anticipates significant growth in construction related to Saudi Vision 2030 initiatives and the service sector. This growth will be supported by increasing consumer demand and a growing female workforce. Fiscal deficits are projected to remain around 2% of GDP from 2024 to 2027.
Praise for Saudi Vision 2030
S&P Global Ratings commended Saudi Arabia for its ambitious economic and social transformation program under the Saudi Vision 2030. The agency expects to witness a surge in investment projects leading up to 2030, focusing on the establishment of new industries like tourism to reduce dependence on the oil sector.