Fitch Affirms Saudi Arabia’s Credit Rating at ‘A+’ with Stable Outlook

Riyadh, February 1, 2025 – Global credit rating agency Fitch Ratings has reaffirmed Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook. The rating underscores the Kingdom’s strong fiscal and external balance sheets, positioning it well above the median for countries in the ‘A’ and ‘AA’ rating categories.

Strong Fiscal and External Balance Sheets

Fitch’s report highlights Saudi Arabia’s robust government debt-to-GDP ratio and Sovereign Net Foreign Assets (SNFA), which are significantly stronger than most countries in similar rating categories. The Kingdom’s substantial fiscal buffers, including deposits and other public-sector assets, reinforce its financial stability.

Saudi Arabia’s Sovereign Net Foreign Assets to Surge

The report projects that Saudi Arabia’s Sovereign Net Foreign Assets (SNFA) will reach 63.7% of GDP in 2024-2025. This is remarkably higher than the ‘A’ median of 8.7%, reflecting the Kingdom’s strong financial standing and effective economic policies.

Impact of Fiscal Reforms on Economic Stability

Fitch emphasized that Saudi Arabia’s ongoing fiscal reforms—designed to enhance budget resilience against oil price fluctuations—could positively impact the country’s credit rating in the future. These reforms align with the Kingdom’s long-term strategy to reduce its dependence on oil revenues and strengthen economic diversification.

Growth in Non-Oil Exports and Narrowing Services Deficit

The report also anticipates continued growth in non-oil exports, supporting Saudi Arabia’s economic diversification efforts. Additionally, the services balance deficit is expected to decline, mainly due to a strong increase in travel-related revenues, which is a key sector in Saudi Arabia’s Vision 2030 economic transformation plan.

Saudi Arabia’s Strong Economic Outlook

The reaffirmation of the ‘A+’ credit rating with a stable outlook highlights the Kingdom’s resilient economic policies, fiscal strength, and commitment to long-term growth. With a solid financial position and ongoing reforms, Saudi Arabia is well-positioned to navigate global economic challenges while advancing its strategic goals.

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