S&P Global has affirmed Saudi Arabia’s credit rating at A+ with a stable outlook. The decision highlights the Kingdom’s robust economic policies and resilience amid Middle East tensions. Analysts say that non-oil sector growth and strategic policy measures underpin this stability.
The agency emphasized that Saudi Arabia’s credit rating benefits from strong policy flexibility. For example, the Kingdom can shift crude oil exports to the Red Sea via the East-West pipeline. Additionally, large oil storage capacity serves as a buffer against regional conflict disruptions. These factors, S&P noted, mitigate potential economic shocks.
Moreover, S&P highlighted that non-oil expansion will continue supporting medium-term growth. The agency forecasts real GDP growth of 4.4 percent in 2026 and an average of 3.3 percent between 2027 and 2029. The non-oil sector now represents about 70 percent of GDP, up from 65 percent in 2018. This increase reflects structural progress and successful economic diversification under Vision 2030.
Despite expected growth in government debt, S&P expects authorities to maintain strong fiscal buffers. The Kingdom benefits from a sizable net general government asset position. Furthermore, prior to the current geopolitical tensions, Saudi Arabia had already prioritized diversification projects aligned with Vision 2030 goals.
The agency also expects the Kingdom to maintain a prudent and flexible fiscal approach. Officials have repeatedly committed to achieving Vision 2030 objectives without undermining public finances. Consequently, Saudi Arabia’s credit rating continues to reflect policy credibility, economic resilience, and strategic planning.
Financial experts noted that the stable outlook reinforces investor confidence. They expect continued fiscal discipline and careful allocation of resources toward non-oil sectors. Additionally, robust government planning allows Saudi Arabia to respond effectively to market or geopolitical shocks.
Overall, analysts see this affirmation as a signal of enduring stability. By combining oil revenue management, non-oil growth, and diversification initiatives, the Kingdom demonstrates strong economic fundamentals. In summary, Saudi Arabia’s credit rating remains supported by flexible policies, strong fiscal buffers, and successful Vision 2030 reforms.
