Saudi Arabia credit rating remains strong with stable outlook as Fitch Ratings confirmed the Kingdom’s long-term foreign-currency issuer rating at “A+.” This affirmation reflects the country’s fiscal strength, external buffers, and growing non-oil economy. Moreover, strong banking indicators and solid governance efforts further support this positive rating.
Fitch praised Saudi Arabia’s solid fiscal position. The government holds large reserves, strong public sector assets, and maintains low debt levels. These strengths place Saudi Arabia well above other countries in the same rating category. Additionally, its sovereign net foreign assets outpace the medians for “A” and “AA” rated countries.
Saudi Arabia credit rating remains strong with stable outlook even as oil prices fluctuate. The Kingdom continues to spend heavily on major investments, which increases short-term deficits. However, Fitch noted that long-term growth remains secure thanks to well-managed diversification and investment strategies.
The rating agency acknowledged Saudi Arabia’s Vision 2030 reforms. These policies continue to drive strong expansion in the non-oil sector. Fitch pointed out that the non-oil private sector now contributes 56 percent of total GDP. This shift reflects a 28 percent increase after rebasing GDP figures.
Meanwhile, Fitch expects the Kingdom to face a gradual shift toward external debt in coming years. This trend comes from steady borrowing and ongoing local investment. Still, the agency forecasts that external reserves will stay high. In fact, reserves are expected to cover 12.8 months of external payments, much higher than the “A” rating median.
Fitch projects Saudi Arabia will run a 4 percent budget deficit. This results from lower oil revenues and a smaller dividend from Saudi Aramco. Even so, the deficit should narrow to 3.6 percent in the next two years. This improvement will come from rising non-oil income and moderate spending increases.
Saudi Arabia credit rating remains strong with stable outlook due to consistent policy direction. Fitch expects real GDP growth to hit 4.3 percent next year and 4.7 percent the year after. Growth should ease slightly later but remain healthy at 3.6 percent. Non-oil GDP is forecast to grow at an average of 4.5 percent, driven by government and public sector spending.
Fitch also compared regional countries. UAE, Qatar, and Kuwait all retained their strong ratings due to low debt and strong external positions. However, Saudi Arabia stands out for its pace of transformation and expansion beyond oil.
