S&P Raises Saudi Arabia’s Rating to A+ as Vision 2030 Drives Economic Growth

S&P Raises Saudi Arabia’s Rating to A+ as Vision 2030 Drives Economic Growth

S&P Global Ratings increased Saudi Arabia’s credit rating from A to A+ on Friday. The outlook is stable. This upgrade is because of ongoing social, economic, and market improvements as part of the country’s Vision 2030 plan.

Credit Rating

The rating agency raised Saudi Arabia’s long-term credit rating for both foreign and local currencies to A+. It kept the short-term credit rating at A-1. It also improved the transfer and convertibility (T&C) assessment from A+ to AA-.

S&P said the upgrade shows that Saudi Arabia’s ongoing social and economic changes are supported by better governance and stronger institutions. They mentioned that as Vision 2030 moves forward, there is clearer decision-making and project management.

The agency said the stable outlook means it expects strong growth in sectors outside oil, and that Saudi’s growing local financial markets will help balance the risks of higher government and foreign debt as the country works toward its Vision 2030 goals.

S&P expects Saudi Arabia’s economy to grow by an average of 4% from 2025 to 2028. They believe investment in construction and services will stay strong, supported by consumer demand.

They also said they might raise the rating again in the next two years if reforms and non-oil sector growth lead to steady increases in income per person and attract more private and foreign investments, which would reduce the need for government spending.

However, they warned they could lower the rating if Saudi Arabia’s debt grows faster than expected and weakens the country’s finances or external position.

Saudi Economy

In 2024, Saudi Arabia’s real GDP grew by 1.3% compared to the year before, based on data from the General Authority for Statistics (GASTAT). Non-oil activities grew by 4.3%, government activities grew by 2.6%, but oil activities dropped by 4.5%.

In the last quarter of 2024, the economy grew by 4.5% compared to the same period in the previous year. Growth happened across all sectors: non-oil activities grew by 4.7%, oil activities grew by 3.4%, and government activities grew by 2.2%.

GASTAT said that most parts of the economy showed positive growth in 2024, matching the goals of Saudi Vision 2030.

S&P also pointed out that since Vision 2030 started in 2016, Saudi Arabia has achieved 87% of its 1,064 targets. This includes attracting over 100 million tourists and raising women’s employment rate above 30%.

Published: 17th March 2025

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