Credit rating agency S&P Global affirms the Kingdom of Saudi Arabia’s credit rating at A+ with a stable outlook according to its latest report.
In its report, the agency stated that the affirmation with a stable outlook reflects the kingdom’s strong policy flexibility, including its ability to shift crude oil exports to the Red Sea via East-West pipeline, in addition to its large oil storage capacity, act as mitigants against the effects of the conflict in the Middle East.
The agency highlights that the outlook also reflects their view that non-oil growth momentum and the government ability to prioritize, should support the economy and fiscal trajectory. non-oil expansion will continue to help medium-term growth, with a forecast real GDP growth of 4.4% GDP in 2026, and to average 3.3% in 2027-2029. While the non-oil sector (including government activities) now accounts for about 70% of GDP, up from 65% in 2018, reflecting structural progress as a result of economic diversification efforts.
The agency noted that despite a projected increase in government debt, they expect the authorities will maintain robust fiscal buffers supported by a sizeable net general government asset position. In addition, prior to current geopolitical developments, the Kingdom had already taken the initiative to prioritize diversification projects linked to Vision 2030 to manage plans more in line with available resources. they expect the authorities will continue to adopt a prudent and flexible approach in this regard, having stressed a commitment to achieving Vision 2030 goals without jeopardizing public finances.