S&P Global Ratings, a leading international rating agency, has reasserted its confidence in Saudi Arabia’s financial health, maintaining the nation’s sovereign credit ratings at ‘A/A-1’ with a Stable Outlook.
The endorsement comes on the heels of Saudi Arabia’s intensive efforts to reshape its economy and society. The Kingdom’s ambitious reform initiatives have been instrumental in bolstering economic fortitude and are expected to consistently fuel the growth of the non-oil sector and fiscal revenue streams.
Observing a surge in investments within the non-oil sector and a spike in consumer spending, the agency has projected that the Kingdom’s GDP will grow at an average of 3.3% in the coming years.
With Saudi Vision 2030’s colossal construction projects and service sector enhancements underway, the agency anticipates robust growth driven by heightened consumer demand and an increasingly dynamic female workforce. Additionally, S&P forecasts fiscal deficits to hover around 2% of GDP from 2024 to 2027.
The transformational economic and social shift under Saudi Vision 2030 has not gone unnoticed by the agency. It commends Saudi Arabia’s rapid advancement towards these reforms, which are set to redefine its economic landscape.
As the countdown to 2030 continues, S&P expects a surge in strategic investment endeavors aimed at carving out new industrial avenues—like tourism—and further diversifying the economy away from its traditional dependence on the oil sector.