- S&P has affirmed Saudi Arabia's credit rating, both for its domestic and foreign currency, as "A/A-1" with a stable outlook. This confirmation is detailed in a recently released report from the agency. As per the S&P report, the decision to uphold Saudi Arabia's credit rating reflects the nation's ongoing commitment to implementing reforms in recent years. These reforms have led to significant structural improvements, which have played a vital role in supporting sustainable growth in the non-oil sector.
- Additionally, the report commends Saudi Arabia's prudent management of public finances and its dedication to maintaining a balanced level of public debt. S&P's report also offers economic forecasts for Saudi Arabia, projecting a modest 0.2% GDP growth rate for the current year, primarily attributed to a decline in oil production volumes. Nevertheless, S&P anticipates a more robust growth rate of 3.4% for the years 2024 to 2026, driven by expectations of increased oil demand and substantial expansion in the non-oil sector.
Why it matters
Moreover, the report emphasizes Saudi Arabia's commitment to achieving the objectives outlined in Saudi Vision 2030. This ambitious initiative aims to diversify the economy by promoting investments in projects that reduce reliance on oil, fostering the development of local Saudi talent, and actively increasing women's participation across various sectors of the economy.