Moody’s, a prominent global credit rating agency, has recently reaffirmed Saudi Arabia’s ‘A1’ rating, indicating a positive economic forecast. This assessment serves as a testament to the strides the Kingdom has made in its reform initiatives, which commenced in 2016.
The agency’s endorsement highlights the effectiveness of Saudi Arabia’s macroeconomic strategies and its fiscal discipline. These factors contribute to the Kingdom’s ongoing efforts to expand and strengthen its non-oil GDP through large-scale diversification projects.
The positive outlook assigned by Moody’s is rooted in the continuous reforms and capital investments within the non-oil sectors. Such economic alterations are projected to lessen Saudi Arabia’s dependency on hydrocarbon resources, in line with the country’s robust financial standing and impressive foreign currency reservoirs.
Through the implementation of these initiatives, the agency anticipates a solid boost in the country’s nonhydrocarbon real GDP growth. The projects, being modular and commercialized in phases, are expected to progressively contribute to this growth trajectory.
Moreover, Moody’s acknowledges Saudi Arabia’s large-scale economy, the ongoing improvement in its institutional framework and policy effectiveness, as well as the strong balance sheet and significant foreign exchange reserves that the country holds.
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