The esteemed international agency for credit assessment, S&P Global Rating, has recently reaffirmed the sovereign credit ratings for Saudi Arabia, maintaining them at ‘A/A-1’ with a Stable Outlook. This confirmation reflects the kingdom’s persistent efforts in advancing its economic and social reform initiatives, which are expected to bolster economic fortitude and foster the growth of non-oil sector revenues and development.
With investments in the non-oil sector picking up pace and consumer spending remaining strong, the agency has projected an average GDP growth of 3.3% in the medium term for the nation. The forthcoming years are anticipated to witness robust growth, particularly in construction related to the ambitious Saudi Vision 2030, as well as in the services industry, buoyed by increasing consumer demand and a growing female workforce.
Furthermore, S&P forecasts that the fiscal deficit will hover around 2% of GDP during the period spanning 2024 to 2027. The agency has recognized Saudi Arabia’s swift and substantial efforts toward economic and social transformation, as outlined in Saudi Vision 2030. This transformation is aimed at accelerating investment in new industrial sectors, including tourism, and reducing the economy’s historical dependence on the hydrocarbon sector.