S&P affirms Saudi Arabia's rating at A+ with a stable outlook

The agency stated in its report that its affirmation of the Kingdom’s credit rating with a stable outlook reflects the Kingdom’s ability to withstand pressures stemming from geopolitical tensions in the Middle East, including the diversification of Saudi Arabia’s energy export infrastructure and its capacity to redirect crude oil exports to the Red Sea via the East-West Pipeline. It also highlighted the Kingdom’s resilience and its ability to leverage its substantial domestic and international oil storage and refining capabilities.

The agency noted that the stable outlook reflects the continued momentum of non-oil growth and associated non-oil revenues, alongside the government’s ability to reprioritize investment spending linked to Saudi Vision 2030, thereby supporting the economy and fiscal trajectory.

The agency also pointed out that non-oil activities have maintained their resilience despite geopolitical tensions, supported by sustained consumer spending.

The agency forecast a 0.9% decline in real GDP in 2026, followed by growth of 8.2% in 2027, driven by increased oil production, and an average growth rate of 3.3% during 2028 and 2029.

It further noted that the non-oil sector, including government activities, currently accounts for approximately 70% of GDP, up from 65% in 2018, reflecting the results of economic diversification.