S&P Upgrades Saudi Arabia to A+ as Economic Transformation Advances

KSA, 17 March, 2025 : S&P has raised Saudi Arabia’s long-term sovereign credit rating to “A+” from “A,” citing progress in economic and institutional reforms under Vision 2030. The agency highlighted improved governance, deeper domestic capital markets, and stronger institutional checks and balances.

The outlook remains stable, supported by robust non-oil growth and expanding capital markets. However, S&P expects fiscal and external imbalances due to oil price sensitivity, forecasting a drop to $70 per barrel by 2028. Saudi Aramco’s dividend cut in 2025 is also expected to impact oil revenues.

Despite a projected fiscal deficit widening to 4.8% of GDP, strong non-oil growth and increased oil production from 2025 will support economic expansion, with GDP growth expected to average 4% from 2025-2028.

Saudi Arabia plans to boost oil output beyond 10 million barrels per day by 2028, despite suspending capacity expansion. Investments in key oil fields and the Jafurah gas project will continue to fund Vision 2030 initiatives.

S&P also noted Saudi efforts to strengthen its stock exchange, drive capital market growth, and attract long-term investments. Inflation is expected to remain modest at 1.9% over the next four years.