Fitch Ratings has affirmed Saudi Arabia’s ‘A+’ sovereign credit rating with a stable outlook, supported by strong fiscal fundamentals and a resilient economy.
The ratings agency stated that Saudi Arabia’s credit profile continues to be supported by low government debt, strong sovereign net foreign assets, and sizeable fiscal buffers, with these indicators remaining stronger than the averages for sovereigns rated in the ‘A’ and ‘AA’ categories.
Fitch emphasized that the Kingdom has maintained economic resilience despite regional geopolitical developments, supported by continued growth in the non-oil economy and prudent fiscal management.
According to Fitch, Saudi Arabia’s healthy external balance sheet remains one of its key credit strengths. The agency expects the Kingdom’s international reserves to remain equivalent to around 11.6 months of current external payments in 2026, well above the median level for similarly rated countries.
Fitch also expects Saudi Arabia’s sovereign net foreign assets to remain a significant source of financial strength over the coming years, supported by strong fiscal reserves and sound public finances.
Economic outlook
The agency forecasts Saudi Arabia’s real gross domestic product (GDP) growth to moderate to 0.6 percent in 2026 before recovering in 2027, as maritime traffic through the Strait of Hormuz normalizes, supporting higher oil and petrochemical production.
Fitch highlighted that the economic activity is also expected to benefit from the phased implementation of the Kingdom’s giga-projects, continued investment by the Public Investment Fund (PIF), improving business confidence, and resilient consumer spending.
Fitch described Saudi Arabia’s banking sector as resilient, well-capitalized, and supported by strong deposit growth. The banks continue to maintain solid capital positions and low levels of non-performing loans, with no requirement for central bank support during recent regional tensions.
The agency also underscored continued improvements in governance, institutional effectiveness, and economic diversification, noting that these factors continue to support Saudi Arabia’s long-term credit profile.
