Saudi Arabia credit rating affirmed at A+ by S&P Global

S&P Global Ratings has affirmed Saudi Arabia’s long-term and short-term sovereign credit rating at A+/A-1, maintaining a stable outlook. The agency noted the Kingdom's ability to withstand geopolitical pressures in the Middle East due to its diversified energy export infrastructure. Specifically, the ability to redirect crude oil exports to the Red Sea via the 1,200-kilometer East-West pipeline has mitigated risks associated with potential disruptions in the Strait of Hormuz.

The rating reflects the continued momentum of non-oil growth and revenues, which now account for approximately 70% of GDP, up from 65% in 2018. S&P highlighted the government's capacity to reprioritize investment spending related to Vision 2030 to support fiscal stability. Additionally, foreign exchange reserves have reached their highest levels since early 2020.

Economic forecasts from the agency predict a 0.9% decline in real GDP in 2026, followed by a strong recovery of 8.2% in 2027 driven by increased oil production. Average growth is expected to be 3.3% during 2028 and 2029. Regarding fiscal matters, the budget deficit is projected to be 5.8% of GDP in 2026 before averaging 3.4% between 2027 and 2029.