Saudi Arabia’s credit rating has been upgraded by S&P Global Ratings, reflecting progress in the kingdom’s efforts to reduce its reliance on oil. The rating moved up to A+, with a stable outlook, highlighting improvements in governance and institutional structures as part of the ongoing Vision 2030 initiative.
S&P noted that reforms have strengthened domestic capital markets and increased transparency in decision-making. This rating now matches those of Japan and China and aligns with Fitch, though it remains one notch below Moody’s assessment.
Despite a strong economic performance, with 4.5% growth in the last quarter, Saudi Arabia is facing budget deficits as oil revenues decline. The government continues to invest in sectors such as technology and tourism, aiming to diversify the economy. Large-scale spending is expected to continue, even as the International Monetary Fund projects that high oil prices are needed to balance the budget.
The Opec+ alliance, led by Saudi Arabia and Russia, plans to gradually increase oil production after previous delays. While the government has adjusted its growth forecasts downward, projected expansion remains faster than most other G20 economies.