S&P Global Rating Confirms Saudi Arabia's 'A/A-1' Credit Ratings with Stable Outlook amid Vision 2030 Reforms

KSA,18 March, 2024 : S&P Global Rating has reaffirmed Saudi Arabia's foreign and local currency sovereign credit ratings at 'A/A-1', maintaining a Stable Outlook. This endorsement reflects the Kingdom's ongoing commitment to economic and social reforms under its ambitious Vision 2030 agenda, aimed at enhancing economic resilience and bolstering the non-oil sector's growth and fiscal revenues. 

The agency's report forecasts an average GDP growth of 3.3% in the medium term, driven by increased investment in the non-oil sector and robust consumer spending. It highlights the expected strong growth in construction related to Vision 2030 projects and in the service sector, buoyed by consumer demand and an expanding female workforce.

 S&P anticipates fiscal deficits to hover around 2% of GDP from 2024 to 2027. The credit rating agency commends Saudi Arabia's rapid and significant economic and social transformation efforts. 

It anticipates a surge in investment projects leading up to 2030, aiming to introduce new industries, such as tourism, and to diversify the economy beyond its traditional reliance on the hydrocarbon sector. 

Source : www.saudigazette.com