Riyadh: Fitch Ratings has affirmed Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook. The affirmation underscores the Kingdom’s robust fiscal and external balance sheets, with government debt-to-GDP and sovereign net foreign assets (SNFA) notably stronger than the medians for both the ‘A’ and ‘AA’ rating categories. The country also benefits from substantial fiscal buffers in the form of deposits and other public sector assets.
According to Saudi Press Agency, Fitch projects that Saudi Arabia’s GDP growth will reach 4.8% in 2026, while the fiscal deficit is anticipated to narrow to 3.6% of GDP by 2027. Additionally, non-oil revenues are expected to continue benefiting from active economic conditions and enhanced collection techniques.
Fitch also noted that the momentum for reforms remains strong in Saudi Arabia. Recent initiatives include the introduction of a new investment law and further liberalization of real estate and stock markets to foreign investors.