Moody’s Upgrades Saudi Arabia’s Credit Rating to “Aa3” with Stable Outlook

KSA, 25 November, 2024 : Moody’s Ratings has upgraded Saudi Arabia’s credit rating to “Aa3” in both local and foreign currency, maintaining a “stable” outlook. The upgrade reflects the Kingdom’s continued progress in economic diversification and the strong growth of its non-oil sector, which is expected to reduce its reliance on oil market fluctuations and long-term carbon transition.

The agency praised Saudi Arabia’s fiscal planning, highlighting its focus on expenditure prioritization and improving spending efficiency. Moody’s noted that the Kingdom’s commitment to transformative spending in non-oil sectors is vital for sustainable development and maintaining a strong fiscal position. The forecasted fiscal deficit is expected to remain relatively stable at 2%-3% of GDP.

Moody’s anticipates Saudi Arabia’s non-oil private sector GDP to grow by 4-5% in the coming years, among the highest in the GCC, signaling continued diversification progress.

The upgrade adds to the Kingdom’s series of credit rating improvements in recent years, reflecting successful structural reforms and fiscal policies that promote financial sustainability and resilience.