RIYADH: On Friday, the international ratings agency S&P upgraded Saudi Arabia’s rating from “A” to “A+” with a stable outlook, citing the country’s continuous social and economic change as justification. According to Fitch, the nation’s Vision 2030 initiative offers some leeway in controlling debt issuance and capital expenditures. According to the analysis, the project’s continued momentum might stimulate activity in the manufacturing, mining, logistics, and construction sectors, leading to GDP growth between 2025 and 2028.
The ratings agency had stated earlier this week that it anticipates the Saudi government will reduce capital expenditures and related current spending in 2025. According to Fitch, the current investments should raise the economy’s productive capacity and boost spending among Saudi Arabia’s youth, as the country’s primary goal is to diversify its economy away from its reliance on the oil sector.
Last week, Italy’s state export credit agency SACE and Saudi Arabia’s Public Investment Fund inked a new $3 billion memorandum of understanding. This will assist sustain the nation’s debt, according to the ratings agency. Additionally, Fitch predicts that through 2028, current oil price sensitivity will lessen external and fiscal imbalances. It anticipates that the drop in dividends from Saudi giant Aramco will further reduce oil revenue.
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