S&P affirms Saudi Arabia’s credit rating at A/A-1, stable outlook

The Kingdom of Saudi Arabia's flag

Standard & Poor's (S&P) affirmed its credit rating for Saudi Arabia in local and foreign currencies at “A/A-1” with a stable outlook in a recent report.

S&P maintained its credit rating, backed by the Kingdom’s efforts to proceed with significant reforms in the past few years. The Kingdom also realized structural reforms that contributed to supporting sustainable development in the non-oil sector, in addition to improving public finance management and maintaining a balanced public debt level, the SPA reported.

The rating agency predicted the Saudi gross domestic product (GDP) to grow by 0.2% this year, on lower oil production. It also forecasts GDP to expand by 3.4% from 2024-2026, on the expected rise in demand for oil and the significant growth in the non-oil sector.

S&P also noted that the Saudi government continues to achieve the targets of Saudi Vision 2030, aimed at the non-oil sector growth by investment in economic diversification projects, enabling a skilled Saudi workforce and increasing female participation.