RIYADH — S&P Global Ratings affirmed Saudi Arabia’s sovereign credit ratings at ‘A-/A-2’ with a stable outlook.
The credit ratings agency said in a statement that the Saudi economy will likely return to positive growth in 2021 after the contraction seen in 2020.
The gross domestic product (GDP) is forecast to grow by 2% in 2021 compared to a contraction by 4.1% in 2020.
The agency also expected the return of current account to surplus and reduction of the fiscal deficit ratios, driven by the improvement of global economy and recovery of oil prices, as the coronavirus is going to end.
The stable outlook indicates that the Kingdom’s financial position and external net asset positions would remain strong enough over the next two years to support the ratings, S&P said.
It added that the Kingdom continues with its ambitious strategy of investment and economic diversification, making several important achievements of Vision 2030.
This program is largely aimed at growing the non-oil economy and private-sector and encouraging the social transformation of the country.
There have been some significant achievements in terms of social reforms and increased freedoms for women.
Vision 2030 megaprojects such as Neom (a city of the future), the Qiddiya entertainment park, and Red Sea Resorts will be driven forward. — SG
Copyright: Saudi Gazette, Published: March 27, 2021