RIYADH — Moody's Ratings has upgraded Saudi Arabia's credit rating to Aa3 in both local and foreign currencies, maintaining a stable outlook. The agency attributed the upgrade to the Kingdom's ongoing economic diversification efforts and the robust growth of its non-oil sector. According to Moody's, these advancements are expected to reduce Saudi Arabia's reliance on oil market fluctuations and mitigate the long-term economic and fiscal risks associated with the global carbon transition. The agency also praised the Kingdom's fiscal planning, highlighting its prioritization of expenditure and improvements in spending efficiency. Moody's report noted the Saudi government's effective use of fiscal resources to diversify the economic base through transformative investments. These measures have been key to the sustainable development of the non-oil economy while maintaining a strong fiscal position. The agency projects a relatively stable fiscal deficit of 2%-3% of GDP, underpinned by these initiatives.
