Standard & Poor’s Affirms Kingdom’s Credit Rating, Upgrades Outlook to Positive
Standard & Poor’s (S&P) has confirmed the Kingdom’s credit rating at “A/A-1” for both local and foreign currencies, while upgrading its outlook from “stable” to “positive.”
S&P attributes this strong rating to the Kingdom’s ongoing comprehensive reforms and investments, which are set to boost the non-oil economy and ensure the sustainability of public finances.
The agency anticipates growth in the non-oil sector due to the Kingdom’s continued implementation of Saudi Vision 2030 initiatives, particularly major infrastructure projects aimed at reducing pressure on public finances.
S&P projects that the Kingdom’s GDP will grow from 2024 to 2027, driven by increased investments in the non-oil sector, higher consumption rates, and a more diversified economy. This growth is expected to create more job opportunities and greater workforce participation.
We project stronger growth averaging 4.3 percent over 2025-2027,
S&P stated.
Nevertheless, S&P warns of potential risks such as a significant drop in oil prices and volumes, which could impact public finances, as well as challenges related to tight supply, skill shortages, and the development of basic infrastructure like housing.