S&P Global Ratings has affirmed Saudi Arabia’s sovereign credit rating at ‘A+/A-1’ with a stable outlook, reflecting the Kingdom’s strong economic fundamentals, diversification momentum, and prudent fiscal management. The announcement reinforces Saudi Arabia’s standing as one of the most creditworthy sovereign economies in the region.
Non-Oil Growth Drives Long-Term Confidence
S&P highlighted that non-oil expansion remains a central driver of Saudi Arabia’s medium-term growth trajectory. The agency forecasts real GDP growth of 4.4 percent in 2026, with projections averaging 3.3 percent annually between 2027 and 2029. The non-oil sector — including government-related activities — now accounts for approximately 70 percent of GDP, up from 65 percent in 2018. This structural shift reflects the depth and pace of economic diversification underway across the Kingdom.
The agency noted that Saudi Arabia has proactively prioritized Vision 2030 diversification projects while carefully aligning them with available fiscal resources. The Kingdom’s commitment to achieving Vision 2030 goals without compromising public finances was cited as a key factor in the rating affirmation.
Fiscal Buffers and Policy Flexibility
The stable outlook also reflects S&P’s assessment of Saudi Arabia’s substantial fiscal buffers, supported by a sizeable net general government asset position. Despite a projected increase in government debt, the agency expects the authorities to maintain robust fiscal management. Saudi Arabia’s policy flexibility — including its capacity to reroute crude oil exports through the East-West pipeline to the Red Sea port of Yanbu — was also identified as a key mitigating factor supporting the economy’s resilience.
S&P’s affirmation comes in the context of a broader recognition of Saudi Arabia’s strategic infrastructure investments and its large oil storage capacity, both of which contribute to the Kingdom’s ability to absorb external shocks and maintain macroeconomic stability.
Saudi Arabia on the Global Investment Map
The maintained A+ rating positions Saudi Arabia firmly among the top-tier sovereign credits globally, making it an attractive destination for international investors seeking stability and long-term growth. The rating agency’s confidence in the Kingdom’s economic direction is consistent with the series of upgrades and positive affirmations Saudi Arabia has received from leading international credit agencies over recent years.
As the Kingdom continues to execute on Vision 2030 — with flagship projects advancing in tourism, entertainment, technology, logistics, and renewable energy — the S&P rating affirmation serves as an independent validation of Saudi Arabia’s economic transformation strategy and its ability to deliver sustainable fiscal and economic performance over the long term.
