"Moody's" Confirms Saudi Arabia's Credit Rating at "Aa3" with Stable Outlook

SadaNews - Moody's credit rating agency has confirmed its credit rating for Saudi Arabia at "Aa3" with a stable outlook.

The agency stated that the Kingdom's credit rating reflects the strength of its robust economy supported by its vast oil wealth, along with the Kingdom's strong competitive position in global energy markets, in addition to improvements in institutional performance and government policies. Saudi Vision 2030 also contributes to enhancing the growth of non-oil sectors through ongoing government investments, structural reforms, and improved financial and economic transparency.

Moody's explained that the stable outlook reflects the Kingdom's resilience in facing regional geopolitical tensions and potential disruptions, backed by its continuous flexibility, including its ability to transport crude oil exports to the Red Sea through the East-to-West pipeline.

The agency expects Saudi Arabia to continue making progress in diversifying its economy in the coming years, due to the extensive reforms implemented across several programs, including judicial, economic, and social, which have contributed to accelerating the growth of the services sector and the non-oil economy.

It was noted that it is expected that the growth of the non-oil private sector will return to levels ranging from 4-5% following a reduction in regional geopolitical tensions, which is considered one of the highest growth rates in the Gulf countries, reflecting the continuation of structural reforms and the momentum of government investments, in addition to increased contributions from the private sector.