Fitch ratings has upgraded Saudi Arabia’s Long-term foreign-currency issuer default rating (Idr) to ‘A+’ from ‘A’, with stable outlook.
This reflects Saudi Arabia's strong fiscal and external balance sheets, with government debt/GDP and sovereign net foreign assets (SNFA) considerably stronger than both the 'A' and 'AA' medians, and significant fiscal buffers in the form of deposits and other public sector assets, the agency said in its report.
It also noted that the upgrade highlights ongoing commitment to gradual progress with fiscal, economic and governance reforms.
Experts told Asharq Al-Awsat that Fitch top rating of the Saudi economy reflects the Kingdom's progress in reforms and the Saudi government continued support for the private sector, which has become a major partner in the development of the national economy in terms of revenues.
Also, in its recent report, the General Authority for Statistics said that the Saudi gross domestic product (GDP) grew by 8.7 per cent in 2022, the highest among G20 countries.
Fitch ratings also said that government decision-making appears to have been strategic, "reflecting a policy balance between supporting Vision 2030 projects and responding to higher inflation on the one hand and remaining fiscally prudent."
"We project real growth of 5% in the non-oil private sector in 2023 (5.4% in 2022), supported by higher government capex, investments by the PIF including giga projects, robust credit growth, ongoing development of retail and entertainment sectors and employment gains among Saudis and expats," he added.
