S&P lifts Saudi’s rating on economic shift away from oil

Global ratings agency S&P raised Saudi Arabia’s rating to ‘A+’ from ‘A’ with a stable outlook on Friday, underpinned by the ongoing social and economic transformation in the country.

Read-Saudi Arabia cuts oil prices to Asia for first time in three months

Fitch said the country’s Vision 2030 project provides some flexibility in managing capital expenditure and debt issuance.

The sustained momentum in this project can help boost activity in construction, logistics, manufacturing and mining sectors, prompting GDP growth over 2025-28, the report said.

Earlier last week, the ratings agency had said it expects Saudi government to cut capex and associated current spending in 2025.

With Saudi’s main aim to diversify its economy away from its reliance on the hydrocarbon sector, Fitch said the current investments should boost consumption by Saudi Arabia’s young population and increase the productive capacity of the economy.

Last week, Saudi Arabia’s Public Investment Fund had signed a new memorandum of understanding worth $3bn with Italy’s state export credit agency SACE.