Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

S&P Confirms Saudi Arabia's Rating at "A/A-1" with Stable Outlook

Sun 17 Mar 2024 | 04:44 AM
Taarek Refaat

Standard & Poor's (S&P) affirmed Saudi Arabia's credit rating in local and foreign currency to "A/A-1" with a stable outlook.

The rating agency explained in its report that its confirmation of the Kingdom’s credit rating came against the backdrop of the Kingdom’s continued efforts with economic and social reforms in recent years, and their impact on the flexibility of its economy, and its contribution to supporting the development of non-oil sector growth and raising public financial revenues.

The agency expected the Kingdom's gross domestic product (GDP) growth to rise at an average rate of 3.3% during the years 2024/27 in the medium term, based on the remarkable growth in economic diversification and investments in the non-oil sector with the strong growth of consumption in the Kingdom, quoted by the Saudi Press Agency (SPA).

The agency indicated its expectations of rising growth in the construction of Kingdom Vision 2030 projects and service projects supported by rising consumer demand and activating the role of women in the Saudi labor market. The agency predicted that the fiscal deficit would reach 2% of GDP during the years 2024/27.

The agency also referred to the Kingdom’s extensive and persistent efforts in economic and social transformation programs within the framework of the Kingdom’s Vision 2030, as it expected in its report that the Kingdom will witness, before 2030, an acceleration in investment projects that will contribute to diversifying its economy with new industries such as tourism, away from its primary dependence on the hydrocarbon sector.