The agency said that the positive outlook reflects the Saudi government’s ability to achieve more reforms and investments, which contributes to developing the non-oil economy.
The credit rating upgrade also reflects the country’s economy’s ability to withstand ongoing volatility in the oil and gas sector.
“We expect to see an acceleration in investments to develop new sectors, such as tourism, and to diversify the economy away from its primary reliance on the hydrocarbon sector,” Standard & Poor’s said.
Saudi Arabia, the world’s largest oil exporter, has announced an economic reform, known as Vision 2030, aimed at achieving further economic growth.
Standard & Poor’s says continued implementation of Vision 2030 initiatives will support strong non-oil growth over the medium term.
However, the oil and gas sector and the national oil giant Aramco will continue to play an important role in driving the Kingdom’s oil-related economy.
The inflation rate remained relatively low in Saudi Arabia compared to global levels.
Standard & Poor’s expects inflation to remain stable and interest rates to move broadly in line with those of the US Federal Reserve.
Standard & Poor’s affirmed Saudi Arabia’s credit rating at A/A-1.
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