In a new assessment, S&P Global Ratings affirmed Saudi Arabia's credit rating at A+ with a stable outlook. This report shows that Saudi Arabia is able to maintain its economic stability in the unstable conditions of the Middle East. In particular, the country's diverse energy export infrastructure and its ability to redirect crude oil exports to the Red Sea via the East-West pipeline have been highlighted as key strengths.
Economic Growth Forecast in Challenging Conditions
S&P Global also pointed to the continued trend of non-oil growth and related revenues, emphasizing that the Saudi Arabian government has the necessary capacity to adjust investment spending related to the country's Vision 2030. This will help support Saudi Arabia's economy and financial trajectory. Despite tensions, non-oil activities continue to progress strongly, aided by consumer spending.
With a forecasted decline of 0.9% in Saudi Arabia's real GDP in 2026, this indicator is expected to improve with an increase of 8.2% in 2027. This increase will result from higher oil production and will average 3.3% from 2028 to 2029. Additionally, the non-oil sector, including government activities, now constitutes about 70% of GDP, up from 65% in 2018.
Strengthening Financial Resources and Structural Reforms
The agency also noted Saudi Arabia's strong public asset position as a key strength, highlighting that the country's foreign reserves have reached their highest level since early 2020. S&P Global believes that continued review of the implementation of Vision 2030 projects should help strengthen financial resilience. The agency expects Saudi Arabia to continue to adopt a cautious and flexible approach and to emphasize its commitment to achieving the goals of Vision 2030 without jeopardizing public finances.
Ultimately, S&P Global emphasized the importance of ongoing structural reforms to support non-oil growth and demonstrated that Saudi Arabia continues to make progress despite challenges.
