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

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S&P Global Ratings affirmed its foreign and local currency sovereign credit ratings for Saudi Arabia at ‘A/A-1’ with Stable Outlook.

The agency indicated the affirmation was a result of the Kingdom’s economic and social reform agenda in recent years. "The stable outlook reflects that we expect the government's wide-ranging reforms will continue to underpin the development of the non-oil sector and support non-oil growth and fiscal receipts," it noted.

An acceleration of non-oil sector investment and robust consumption growth will keep Saudi Arabia's overall GDP growth at 3.3%, on average, annually over 2024-2027.

"Contrary to our previous expectation of fiscal surpluses, we now forecast deficits averaging nearly 2% over the next four years," the agency said.

Saudi Arabia has embarked on a significant, rapid economic and social transformation program under the Vision 2030. "In the leadup to 2030, we expect to see an acceleration of investment projects that seek to establish new industries, such as tourism, and diversify the economy away from its primary reliance on the upstream hydrocarbon sector," the agency said.