S&P maintains Saudi Arabia's credit rating, citing financial reforms growth forecasts

2024-03-17 04:17:40

(MENAFN) Standard & Poor's, the renowned international credit rating agency, has opted to maintain the Kingdom of Saudi Arabia's credit rating at "A/A-1," signaling confidence in the nation's economic trajectory. This decision, announced on Friday, underscores the effectiveness of Saudi Arabia's ongoing economic reforms in bolstering its fiscal resilience and promoting sustainable growth.

In its report, Standard & Poor's highlighted the Kingdom's steadfast commitment to economic and social reforms in recent years, emphasizing their positive impact on enhancing the flexibility of Saudi Arabia's economy. These reforms have played a crucial role in diversifying the economy away from its reliance on oil revenues, fostering the development of the non-oil sector, and bolstering public financial revenues.

Looking ahead, Standard & Poor's anticipates robust GDP growth for Saudi Arabia, with an average rate of 3.3 percent projected during the period from 2024 to 2027. This optimistic outlook is underpinned by significant investments in economic diversification and non-oil sector initiatives, coupled with strong consumer spending trends within the Kingdom.

Moreover, the agency foresees increased momentum in the implementation of Vision 2030 projects, a cornerstone of Saudi Arabia's ambitious development agenda. These projects, spanning various sectors including construction and services, are expected to receive a boost from rising consumer demand and the active participation of women in the Saudi labor market.

The decision to maintain Saudi Arabia's credit rating at a stable level reflects the confidence of international financial markets in the Kingdom's economic resilience and long-term prospects. As Saudi Arabia continues to press forward with its reform agenda, the nation is well-positioned to capitalize on its strengths and navigate challenges, ensuring sustained economic growth and prosperity for its citizens.

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