Skip to content Skip to Search
Skip navigation

S&P and Moody’s stay ‘positive’ on Saudi Arabia’s non-oil reforms

Saudi solar power Reuters/Faisal Al Nasser
The non-oil sector will remain strong through 2026 due to service sector growth supported by ongoing social reforms

S&P Global has raised its sovereign credit ratings on Saudi Arabia to A/A-1, with a stable outlook.

The upgrade results from the kingdom’s significant reform efforts in recent years, structural improvements pushing non-oil sector growth, improving public finance management and maintaining a balanced public debt level.

The kingdom’s real GDP growth stood at 8.7 percent in 2022, the highest among the G-20 economies, S&P said.

However, the rating agency anticipated moderate economic expansion, averaging 2.6 percent in 2023-2026, with GDP per capita averaging $31,500 – significantly beyond pre-pandemic levels – state-owned SPA news agency reported.

The non-oil sector will remain strong through 2026 due to service sector growth supported by significant ongoing social reforms and female workforce participation. The kingdom will see fiscal surpluses continue through 2024 after reaching 2.5 percent of GDP in 2022.

Meanwhile, Moody’s affirmed its A1 rating for the kingdom and revised the stable outlook rating to positive, thanks to the government’s track record of fiscal policy effectiveness and sweeping regulatory and economic reforms.

The agency lauded the critical role of the government-backed diversification projects and initiatives, backed by private sector investment and their positive impact on economic growth.

Latest articles

Gulf airlines, Gulf airlines conflict, Gulf conflict risk, Gulf flights cancelled rerouted

Conflict risk leads Gulf airlines to cancel regional routes

Gulf airlines are among airlines that have cancelled and rerouted flights across the Middle East as the conflict between Iran and Israel escalates. They are avoiding Iranian airspace and many have cancelled routes entirely following a major missile attack by Iran against Israel on Tuesday. Immediately after the attacks about 80 flights operated by carriers […]

Taaleem's schools offer 'exclusive educational experiences' including access to high-tech equipment profits

Dubai school operator Taaleem increases profit by 55%

Dubai school operator Taaleem has reported revenue of AED945.2 million ($257.3 million) for its 2023-24 financial year – a 15.5 percent year-on-year increase. More student enrolments and the opening of new schools helped Taaleem to increase net profit before tax by 55 percent, to AED182 million, in the financial year ending August. Taaleem’s shares were […]

Workers stand on a scaffold in Dubai. Building a high rise in the UAE can be as much as two thirds cheaper than in other major cities

Apartments in UAE among cheapest to build in the world

Building a standard residential high-rise in Dubai or Abu Dhabi is up to two-thirds cheaper than in other major global cities, thanks to land, labour and raw materials all costing much less. Land is up to three times cheaper in the UAE compared with the prices paid in New York, London, Hong Kong and Singapore […]

Despite challenges to the economy, Kuwait's bank sector remained resilient, the country's central bank says

Kuwait’s economy holds up against challenges, says central bank

Robust spending and “long-due” structural reforms expected to accelerate following “recent political developments” will help Kuwait’s economy overcome some challenges, according to the Central Bank of Kuwait (CBK). Kuwait faced multiple challenges in 2023 in the face of high inflation, rising global interest rates and bubbling geopolitical tensions in the region, according to CBK’s 12th […]