Standard & Poor's Global Credit Rating Agency has kept Saudi Arabia's credit rating unchanged, as a result of the Kingdom's ongoing economic reforms.
The agency maintained Saudi Arabia's rating at A/A-1 on Friday, and kept the outlook for Saudi Arabia at stable.
The agency explained in its report on Friday that its confirmation of the Kingdom’s credit rating came against the backdrop of Saudi Arabia’s continued efforts in economic and social reforms in recent years, their impact on the flexibility of its economy, and their contribution to supporting the development of the non-oil sector and raising public financial revenues.
Standard & Poor's expects the Kingdom's GDP growth to rise at an average rate of 3.3 percent during the years 2024-2027 in the medium term, based on the remarkable growth in economic diversification and investments in the non-oil sector with strong growth in consumption in the Kingdom.
The agency pointed out its expectations of the increasing growth of construction projects of the Kingdom's Vision 2030 and service projects supported by the increase in consumer demand and the activation of the role of women in the Saudi labor market.
The agency predicted that the fiscal deficit would reach 2 percent of GDP during the years 2024-2027.
The agency also referred to the Kingdom’s extensive and diligent efforts in economic and social transformation programs within the framework of the Kingdom’s Vision 2030, where it expected in its report that the Kingdom would witness, before 2030, an acceleration in investment projects that would contribute to diversifying its economy with new industries such as tourism, away from its primary dependence on the hydrocarbon sector.
