Standard & Poor’s (S&P) has reaffirmed Saudi Arabia’s credit rating for both local and foreign currency at “A/A-1,” enhancing the outlook from “stable” to “positive,” as noted in their latest report.
According to S&P, this affirmation stems from the Kingdom’s ongoing commitment to comprehensive reforms and investments, which are expected to bolster the development of the non-oil economy and ensure the sustainability of public finances.
Read more: Read more: S&P affirms Saudi Arabia’s rating, revises outlook to positive
The report highlights S&P’s anticipation of increased growth in the Kingdom’s non-oil sector over the medium term, driven by the continued rollout of initiatives under Saudi Vision 2030. A key focus will be on accelerating major infrastructure projects to alleviate pressure on public finances.
S&P also projects that the Kingdom’s gross domestic product (GDP) will experience steady growth between 2024 and 2027. This growth will be fueled by substantial investments in the non-oil sector and rising consumption rates. Additionally, there is an expectation that the Kingdom will evolve into a more diversified economy. This evolution will create more job opportunities for the youth.
Last week, a report by Knight Frank highlighted that Saudi Arabia’s Vision 2030 is spearheading $1.3 trillion in investments throughout the Kingdom’s real estate, infrastructure, and transportation sectors. Among these, $164 billion in real estate contracts have been awarded, with the largest contract allocated to Neom, totaling $28.7 billion.
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