Fitch Ratings has affirmed the Kingdom of Saudi Arabia’s credit rating at ‘A+’ with a Stable Outlook, according to its latest report.
In its report, Fitch Ratings said that the rating reflects the strength of the Kingdom’s financial position, noting that Saudi Arabia’s debt-to-GDP ratio and sovereign net foreign assets are significantly stronger than the ‘A’ and ‘AA’ rating category medians. It also highlighted that the Kingdom holds substantial financial reserves in the form of deposits and other public sector assets.
Fitch Ratings expects sovereign net foreign assets to remain a core credit strength, reaching 35.3 percent of gross domestic product (GDP) in 2027, a high ratio compared to the ‘A’ median of 3.1 percent of GDP.
The agency also highlighted the Kingdom’s ongoing fiscal reforms, which aim to enhance the public budget’s resilience to oil price fluctuations. These reforms, along with the continued improvement in non-oil revenues, are seen as supportive of Saudi Arabia’s credit profile.
According to the report, GDP growth is expected to rise to 4.3 percent in 2025 and 4.7 percent in 2026 before slowing to 3.6 percent in 2027, driven by increases in oil production. Non-oil growth will remain buoyant, averaging 4.5 percent over the period, backed by reforms, capex and high spending by government-related entities. Higher oil output will benefit downstream processing industries.
The report also highlighted that oil dependence, World Bank governance indicators and vulnerability to geopolitical shocks have improved but remain weaknesses. Deep and broad social and economic reforms implemented under Vision 2030 are diversifying economic activity, albeit at a meaningful cost to the balance sheets.
