S&P Affirms Saudi Arabia’s A/A-1 Credit Rating

Positive outlook driven by Vision 2030 initiatives and non-oil sector growth

Standard & Poor’s (S&P) has reaffirmed Saudi Arabia’s credit rating at “A/A-1” for both local and foreign currency, improving the outlook from “stable” to “positive.”

This decision is attributed to Saudi Arabia’s dedication to comprehensive reforms and investments aimed at developing the non-oil economy and maintaining public financial sustainability.

S&P anticipates significant growth in the non-oil sector, driven by Saudi Vision 2030 initiatives, particularly major infrastructure projects designed to ease public financial pressures.

The Kingdom’s GDP is projected to grow steadily from 2024 to 2027, supported by investments in the non-oil sector and increasing consumption rates. This economic diversification is expected to generate more job opportunities for the youth.

Additionally, a report by Knight Frank noted that Vision 2030 is leading $1.3 trillion in investments across Saudi Arabia’s real estate, infrastructure, and transportation sectors, with $164 billion in real estate contracts awarded, including a $28.7 billion contract for Neom.

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