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

The Kingdom of Saudi Arabia's flag

S&P Global Ratings revised its outlook on Saudi Arabia to “Positive” from “Stable” and affirmed its 'A/A-1' long- and short-term foreign and local currency unsolicited sovereign credit ratings.

In a recent report, the agency said its rating reflects the Saudi government's wide-ranging reforms and investments will underpin the development of the non-oil economy while upholding sustainable public finances.

Continued execution on Vision 2030 initiatives will support strong non-oil growth prospects in Saudi Arabia over the medium term. At the same time, the recalibration of some large infrastructure projects should contain pressure on Saudi Arabia's public finances, S&P Global added.

The Kingdom’s gross domestic product (GDP) is expected to continue growth from 2024-2027, thanks to the significant growth in the non-oil sector investments, higher consumption rates, and expectations that Saudi Arabia will likely emerge in the long term as a more diversified economy, with more jobs created for the young population.