S&P Affirms Saudi Arabia’s A+ Rating With Stable Outlook

S&P Global Ratings has affirmed Saudi Arabia’s sovereign credit rating at A+ with a stable outlook, citing resilient non-oil activity, strong reserve buffers and the Kingdom’s ability to redirect energy exports during regional disruption.

The agency said Saudi Arabia’s energy infrastructure gives it flexibility to withstand pressures from the ongoing Middle East conflict, including the ability to reroute crude oil to the Red Sea through the East–West oil pipeline. It also pointed to substantial domestic and overseas oil storage and refining capacity.

The stable outlook also reflects continued momentum in non-oil activity and related government revenue, alongside the government’s ability to adjust Vision 2030 investment spending in line with economic and fiscal conditions. S&P said consumer spending has helped keep non-oil activity reasonably resilient.

S&P expects real GDP to contract by 0.9% in 2026 before rebounding by 8.2% in 2027 as oil production rises. Growth is then projected to average 3.3% across 2028 and 2029.

The agency noted that the non-oil sector, including government activities, now accounts for around 70% of GDP, up from 65% in 2018, which it cited as evidence of progress in economic diversification.

S&P also highlighted Saudi Arabia’s substantial net general government asset position and foreign-exchange reserves, which it said are at their highest level since early 2020.