Saudi Arabia’s credit rating has been lifted to A/A-1 with a stable outlook according to state run news agency, SPA.
World credit rating agency S&P Global Rating updated its credit report for the Kingdom, raising its long and short-term foreign and local currency sovereign credit ratings.
S&P Global Rating said the rating upgrade is a result of the Kingdom’s significant reforms efforts in recent years and its realisation of structural improvements that contributed to supporting a sustained development of the non-oil sector/
Saudi Arabia credit rating
The Kingdom has also improved public finance management and maintaining balanced public debt level.
It expects moderate economic growth, averaging 2.6% in 2023-2026 with GDP/capita averaging $31,500 (significantly above pre-pandemic levels).
The agency forecasts the non-oil sector to remain strong through 2026 due to service sector growth supported by the significant ongoing social reforms and female workforce participation.
It also expected the continuity of fiscal surpluses through 2024 (after reaching 2.5% of GDP in 2022).
The report indicated that inflation in the Kingdom is relatively low compared to its peers.
It expected that it will remain under control thanks to the government efforts in subsidizing fuel and food, as well as the currency peg to the relatively strong US dollar.
Follow us on
