Moody’s has upgraded Saudi Arabia’s credit rating from “A1” to “Aa3”, highlighting the nation’s efforts to diversify its economy beyond oil. This strategic move aligns with Saudi Arabia’s Vision 2030, which aims to reduce oil dependency by investing in infrastructure and developing sectors like tourism, sports, and manufacturing.
Efforts are also underway to attract foreign investments, ensuring the ambitious Vision 2030 plan progresses despite regional challenges. However, with reduced oil revenues due to lower prices and production, the government is reassessing its expenditures. This could lead to delays or adjustments in some projects, while others may receive increased focus.
Moody’s noted that ongoing diversification efforts will lessen Saudi Arabia’s vulnerability to oil market fluctuations and the global shift towards low-carbon energy over time. The agency has revised the country’s outlook to stable, reflecting uncertainties in the global economy and oil markets.
In a related update, S&P recently improved Saudi Arabia’s outlook to positive, citing robust growth prospects in non-oil sectors and economic resilience.