S&P Global has affirmed Saudi Arabia’s A+ credit rating and stable outlook, emphasizing the kingdom’s robust economic performance and fiscal stability.
In S&P Global’s latest report, the agency stated that the affirmation with a stable outlook reflects the kingdom’s strong policy flexibility, including its ability to reroute crude oil exports through the East-West pipeline to the Red Sea.
Additionally, Saudi Arabia’s substantial oil storage capacity helps mitigate the impact of the ongoing conflict in the Middle East.
The agency highlights that the outlook also reflects their view that non-oil growth momentum and the government’s ability to prioritize should support the economy and fiscal trajectory. Non-oil expansion will continue to help medium-term growth, with a forecast real GDP growth of 4.4 percent in 2026, and to average 3.3 percent in 2027-2029.
While the non-oil sector (including government activities) now accounts for about 70 percent of GDP, up from 65 percent in 2018, it reflects structural progress driven by economic diversification efforts.
The S&P Global agency noted that, despite a projected increase in government debt, it expects the authorities to maintain robust fiscal buffers supported by a sizeable net general government asset position.
In addition, prior to the current geopolitical developments, the Kingdom had already taken the initiative to prioritize diversification projects linked to Vision 2030 to better align plans with available resources.
They expect that Saudi Arabia will continue to adopt a prudent and flexible approach in this regard, having stressed its commitment to achieving the goals of Saudi Vision 2030 without jeopardizing public finances, as per the reports.
