Riyadh, Mar 16, 2024, The renowned international credit rating agency, S&P Global Rating, has upheld its foreign and local currency sovereign credit ratings for the Kingdom of Saudi Arabia at 'A/A-1' with a Stable Outlook. In its latest report, the agency pointed out that this affirmation is a testament to the ongoing economic and social reforms implemented by the Kingdom in recent years. These reforms are anticipated to enhance Saudi Arabia's economic resilience and serve as a foundation for the continued development of the non-oil sector and fiscal revenues.
S&P Global Rating highlighted the accelerated investment in the non-oil sector and robust consumption within the Kingdom, leading them to project an average GDP growth of 3.3% in the medium term.
The agency also foresees significant growth in construction activities related to Saudi Vision 2030 projects, as well as in the service sector, bolstered by consumer demand and the increasing participation of women in the workforce. Additionally, S&P expects fiscal deficits to hover around 2% of GDP over the period from 2024 to 2027.
Moreover, S&P Global Rating commended Saudi Arabia's swift and substantial economic and social transformation initiatives under the Saudi Vision 2030. Looking ahead to 2030, the agency anticipates a surge in investment projects aimed at establishing new industries, particularly in tourism, as part of efforts to diversify the economy away from its heavy reliance on the upstream hydrocarbon sector.
