Global ratings agency S&P has upgraded Saudi Arabia’s credit rating to A+ from A, citing the country’s ongoing social and economic transformation under Vision 2030. The outlook remains stable.
📌 Key Highlights:
- Economic Diversification: Investments in construction, logistics, manufacturing, and mining are expected to boost GDP growth from 2025-2028.
- Fiscal Strategy: Saudi Arabia may cut capital expenditure in 2025 to manage spending efficiently.
- Oil Market Influence: Despite Aramco’s lower dividends impacting revenue, Saudi Arabia’s low-cost hydrocarbon production ensures resilience amid the global energy transition.
- Public Investment Fund (PIF): A recent $3 billion MoU with Italy’s SACE will help support the country’s debt management.
- OPEC+ Leadership: Saudi Arabia remains the world’s largest swing oil producer, capable of adjusting output quickly to influence global oil prices.
🔹 Looking Ahead
Fitch predicts that while oil price sensitivity may affect fiscal balances, ongoing investments will strengthen consumption and economic capacity, driven by Saudi Arabia’s young population.