S&P affirms Saudi Arabia’s A+ rating with stable outlook
Rating agency S&P Global Ratings has affirmed Saudi Arabia’s credit rating at A+ with a stable outlook. As Asharq Al-Awsat reports, the agency believes that the kingdom will be able to withstand pressure related to the ongoing conflict in the Middle East.
Export infrastructure and reserves
S&P noted that the stable outlook takes into account the country’s diversified energy export infrastructure. In particular, Saudi Arabia is able to redirect crude oil exports to the Red Sea via the East-West pipeline.
The agency also pointed to significant oil storage and processing capacity both within the country and abroad. Among the kingdom’s strengths, S&P cited a substantial net asset position of the general government sector. According to the agency’s assessment, Saudi Arabia’s foreign exchange reserves reached their highest level since the beginning of 2020.
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Economic forecasts
S&P expects Saudi Arabia’s real GDP to decline by 0.9% in 2026 and grow by 8.2% in 2027 due to increased oil production. In 2028–2029, the average economic growth rate is forecast by the agency at 3.3%.
The non-oil sector, including public sector activity, currently accounts for about 70% of the country’s GDP, compared with 65% in 2018. The agency linked this to structural progress in economic diversification. Despite the regional conflict, non-oil activity remained relatively resilient thanks to consumer spending.
S&P also believes that adjustments to the implementation of projects under Saudi Vision 2030 will support fiscal sustainability. In the agency’s view, the government’s flexible and prudent approach to investment spending should help achieve the program’s goals without harming public finances.
