RIYADH — The world credit rating agency S&P Global Rating has raised Saudi Arabia's long- and short-term credit rating in local and foreign currency to A/A-1, with a stable outlook. In a report, S&P states that this rating resulted within the Kingdom's efforts in achieving remarkable reforms that it had made during the previous year, achieving structural improvements, in addition to its contribution in supporting the sustainable growth of the non-oil sector. The agency, moreover, lauded its efforts to manage public finances and maintain a balanced level of public debt. It has stated that the powerful growth of the GDP by 8.7% in 2022 is the highest growth rate among the G20 countries. The agency expects that the economic growth to be stable during the upcoming years 2023-2026, by 2.6%, with an average GDP per capita of $31,500, which represents higher levels than before COVID-19 pandemic. S&P expected that the non-oil sector will remain powerful until 2026, and this is due to the growth of the services sector supported by the ongoing social reforms, as well as to women participation in the economy. The continued growth will be witness alongside the continuation of the financial surplus until 2024 after it reached 2.5% of GDP in 2022. S&P report described that the inflation in Saudi Arabia as relatively low, compared to its peers, while expecting it will be brought under control due to the efforts of Saudi Arabia's leadership in subsidizing fuel and food, in addition to pegging the currency to the US dollar. It is noteworthy that Moody's has rated Saudi Arabia at A1 with an outlook modified from stable to positive. This rating resulted from the continued efforts of Saudi Arabia's government to develop financial policy and regulatory reforms. Moody's report pointed out that the rating also came as a result of the comprehensive regulatory and economic structural reforms, This will support the sustainability of economic diversification in the medium and long term, as well as reforms and investments in various non-hydrocarbon sectors.
