Saudi Arabia: International rating agency S&P Global Ratings affirmed its foreign and local currency sovereign credit ratings for Saudi Arabia at ‘A/A-1’ with Stable Outlook.

The agency indicated the affirmation was a result of the Kingdom’s economic and social reform agenda in recent years. And is a direction that will improve the Kingdom’s economic resilience and will continue to underpin the development of the non-oil sector and fiscal receipts.

Due to the acceleration in non-oil sector investment and robust consumption in the Kingdom, the agency forecasted GDP growth to average 3.3% in the medium term.

The agency expects strong growth in construction for Saudi Vision 2030 projects and in the service sector, supported by consumer demand and an expanding female workforce. S&P also projects fiscal deficits of around 2% of GDP over the 2024-2027 period.

The agency also praised that Saudi Arabia has embarked on a significant, rapid economic and social transformation program under the Saudi Vision 2030.

In the lead up to 2030, the agency expected to see an acceleration in investment projects that seek to establish new industries, such as tourism, and diversify the economy away from its primary reliance on the upstream hydrocarbon sector.