Saudi Arabia’s Saudi credit rating has been affirmed at A+ with a stable outlook by S&P Global Ratings, according to a report the agency issued recently.
The agency stated that the affirmation reflects the high resilience of Saudi economic policies and the overall strength of the Saudi economy. S&P specifically cited the Kingdom’s ability to redirect crude oil exports to the Red Sea via the East-West Pipeline, as well as its substantial oil storage capacity, as factors that help mitigate the effects of regional conflict in the Middle East.
Non-Oil Growth Supports the Saudi Credit Rating
S&P stated that the stable outlook also reflects its view that non-oil growth momentum, combined with the government’s capacity to prioritize spending, will support both the economy and the fiscal trajectory. The agency added that non-oil expansion will continue to underpin medium-term growth.
S&P forecast that real GDP will grow by 4.4% in 2026, with average growth reaching 3.3% during the period from 2027 to 2029. Moreover, the agency noted that the non-oil sector — including government activities — currently accounts for 70% of GDP, up from 65% in 2018, reflecting structural progress resulting from economic diversification efforts.
Fiscal Reserves and Public Debt Outlook
Despite an expected increase in public debt, S&P stated it anticipates the Kingdom will maintain strong fiscal reserves. The agency noted that Saudi Arabia had, prior to current geopolitical developments, already prioritized Vision 2030 diversification projects to align plans with available resources.
S&P added that the Kingdom is expected to continue adopting a flexible and cautious approach, while maintaining its commitment to achieving Saudi Vision 2030 goals without exposing public finances to risk.
Economic Diversification Progress
The rise of the non-oil sector from 65% to 70% of GDP between 2018 and the present represents a measurable shift in the structure of the Saudi economy. S&P attributed this shift to ongoing diversification efforts tied to the Kingdom’s long-term development agenda.
Furthermore, the agency’s projections suggest that non-oil activities will remain the primary driver of growth through the end of the decade, reducing the economy’s dependence on hydrocarbon revenues over time.
Regional Context and Geopolitical Resilience
S&P highlighted Saudi Arabia’s logistical infrastructure as a key factor in its geopolitical resilience. The East-West Pipeline provides an alternative export route that bypasses the Strait of Hormuz, reducing exposure to potential disruptions in the Gulf region.
The agency’s report, issued in March 2026, positions Saudi Arabia among the higher-rated sovereign economies in the Middle East, with the A+ rating reflecting confidence in both fiscal management and structural reform progress.