S&P affirms Saudi Arabia’s A+ rating with stable outlook

S&P Global Ratings affirmed Saudi Arabia’s long-term sovereign credit rating at 'A+', with a stable outlook.

The agency said the affirmation reflects the Kingdom’s ability to withstand pressures stemming from geopolitical tensions in the Middle East, supported by diversified energy export infrastructure and its flexibility in leveraging its significant oil storage and refining capacity domestically and internationally.

The stable outlook reflects continued momentum in non-oil growth and related non-oil revenues, as well as the government’s ability to reprioritize investment spending under Saudi Vision 2030, supporting economic growth and fiscal performance.

S&P noted that non-oil activities have remained resilient despite geopolitical tensions, supported by continued consumer spending.

The agency expects real GDP to contract 0.9% in 2026, before growing 8.2% in 2027, driven by higher oil production, followed by average growth of 3.3% in 2028 and 2029.

The non-oil sector, including government activities, currently accounts for around 70% of GDP, up from 65% in 2018, reflecting progress in economic diversification.

S&P also highlighted the government’s net assets as a key strength, noting that foreign exchange reserves have reached their highest level since early 2020.

It expects continued reprioritization of Vision 2030 projects to strengthen public finances, while the Kingdom maintains a prudent and flexible fiscal approach and remains committed to achieving Vision 2030 targets without undermining fiscal stability.

The agency also expects ongoing structural reforms to support non-oil sector growth.