Standard & Poor’s credit rating agency raised Saudi Arabia’s classification to (A +) from the level of (A) with a stable future outlook today, Friday, thanks to the continuous social and economic transformation in the country.
The report said that the sustainable driving force in the Vision 2030 project can help enhance the activity in the construction sectors, logistical services, manufacturing and mining, which prompts GDP growth during the period between 2025 and 2028.
A few days ago, the credit rating agency expected the Saudi government to reduce capital spending and the ongoing spending in 2025.
Promoting consumption
In light of the main goal of the Kingdom of diversifying its economy away from dependence on oil and gas, the agency said that the current investments would enhance consumption by Saudi youth and increase the productive capacity of the economy.
Last week, the Saudi Public Investment Fund signed a new memorandum of understanding worth 3 billion dollars with the Italian government export credit agency.
The agency assumes a decline in the average oil prices to $ 70 a barrel during the years between 2025 to 2028, from $ 81 a barrel in 2023.
It expected that the declaration of Saudi Aramco profits by a third in 2025 would lead to more oil revenues, and that the financial deficit would expand to 4.8% of GDP this year, from 2.8% in 2024.
