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.—AN
