Riyadh | BETH

Credit rating agency Standard & Poor’s (S&P) has affirmed the Kingdom of Saudi Arabia’s credit rating at A+ with a stable outlook, according to its latest report.

The agency explained that the rating reflects the flexibility of Saudi economic policies and the strength of the Kingdom’s economy, as well as its ability to manage oil flows and mitigate the impact of geopolitical tensions. This includes the capability to redirect crude exports to the Red Sea through the East–West pipeline, in addition to the Kingdom’s significant oil storage capacity.

S&P also noted that the momentum of non-oil growth, along with the government’s ability to prioritize spending, will continue to support the Saudi economy in the coming years.

The agency expects real GDP to grow by 4.4% in 2026, with an average growth rate of 3.3% between 2027 and 2029.

The report indicated that the non-oil sector — including government activities — now accounts for about 70% of GDP, compared with 65% in 2018, reflecting structural progress driven by the Kingdom’s economic diversification efforts under Saudi Vision 2030.

Despite expectations of a rise in public debt, the agency believes the Kingdom will maintain strong financial reserves, while continuing its flexible approach in managing diversification projects in line with available resources.

BETH Reading

The affirmation of the A+ rating reflects the confidence of international financial institutions in the Saudi economy’s ability to manage economic transformation and geopolitical challenges simultaneously.

The report also highlights the success of the Kingdom’s economic diversification strategy, which is gradually reducing reliance on oil and strengthening the resilience of the Saudi economy against regional and global fluctuations.