Saudi Gazette report

RIYADH — S&P Global Ratings has upgraded Saudi Arabia’s long-term sovereign credit rating to ‘A+’, citing the Kingdom’s sustained socioeconomic and capital market reforms under Vision 2030.

The outlook remains stable, reflecting strong non-oil growth and robust investment momentum.

The upgrade highlights Saudi Arabia’s improving institutional framework, governance effectiveness, and economic diversification.

The recalibration of infrastructure investments and a disciplined approach to capital markets have strengthened fiscal resilience, aligning the country with its highly rated global peers.

Despite lower oil revenues, government initiatives to boost investment and consumer spending are expected to drive economic expansion.

S&P projects Saudi Arabia’s real GDP to grow at an average of 4% from 2025 to 2028, supported by thriving non-oil sectors such as tourism, manufacturing, logistics, and green energy.

The Public Investment Fund (PIF) continues to play a key role, investing $40 billion annually in domestic projects.

Meanwhile, tourism's contribution to GDP has surged, employment opportunities — particularly for women — are expanding, and real estate and entertainment sectors are flourishing.

While the fiscal deficit is projected to widen due to large-scale development projects, Saudi Arabia’s sovereign balance sheet remains robust, with net government assets expected to stay at about 32% of GDP by 2028.

Additionally, the Kingdom is set to maintain a net external creditor position, reinforcing economic stability.