an agency "S & B." It raises the classification of Saudi Arabia to "A+" Amid repairs
Riyadh, March 15 / WAM / S&P Global Retings raised the credit rating of Saudi issues in the long -term foreign and local currencies to “A+” from “A”, with a stable future look, amid sustainable social and economic reforms, in light of the success of the Kingdom’s efforts to diversify the economy away from oil.
“S&P” explained that raising the credit rating of the Kingdom reflects its belief that “the ongoing social and economic transformation in Saudi Arabia is supported by improving the effectiveness of governance and institutional settings, including deepening local capital markets.”
She pointed out that Saudi Arabia has achieved, since the government announced its ambitious plan “Vision 2030” in 2016, about 87% of its 1064 goals.
The agency noted that “governmental measures aimed at stimulating investment and consumption will support the prospects for strong non -oil growth in the medium term.” Also, “the momentum of the strong growth of the non -oil economy and the local capital markets balances the risks resulting from the high government and external debt to achieve the goals of Vision 2030 and the costs of serving the debt.”
The agency believes that “the institutional settings in Saudi Arabia have become more powerful in the context of social and economic reforms and the transformation under the 2030 vision, and it is now compatible with most of the peers classified in the slide (A).”
Regarding efforts to diversify the Saudi economy and the development of the non -oil sector, S & B said that public and private investments aim to develop new industries, such as tourism, manufacturing, green energy and mining, with the aim of diversifying the economy away, hydrocarbons, expected to enhance the current investments of Saudi population, and gradually increase the productive capacity of the economy.
She pointed out that the non -oil sector (including government activities) now represents about 70% of GDP, compared to 63% in 2018.
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