Saudi Arabia has succeeded in obtaining high credit ratings from leading global credit rating agencies such as Fitch Ratings, Moody’s, and Standard & Poor’s. All of them praised the economic diversification achieved by the Kingdom away from an oil-dependent economy, its role in keeping public debt under control, and its large financial reserves. So what does a high credit rating mean for Saudi Arabia, and how does the economy benefit from these global ratings?

How Credit Rating Agencies View Saudi Arabia

On November 30, Moody’s maintained Saudi Arabia’s credit rating at “Aa3” with a stable outlook. It also praised the expected economic growth in the Kingdom in 2026, supported by strong growth in non-oil activities as a result of ongoing economic diversification efforts and coherent fiscal policies.

In March, Standard & Poor’s raised Saudi Arabia’s local and foreign currency credit rating to “A+” with a stable outlook.

Fitch Ratings granted Saudi Arabia an “A+” rating in July 2025 with a stable outlook. In its report, the agency stated that the Kingdom’s net external public asset position and low level of sovereign debt provide solid support for the rating, noting that net sovereign foreign assets are expected to remain strong at 35.3 percent of GDP by 2027.

The Kingdom of Saudi Arabia (Websites).

What do the high credit ratings mean for Saudi Arabia?

Saudi economic analyst Abdullah Al‑Qahtani tells Annahar that the consensus among global credit rating agencies to raise or maintain Saudi Arabia’s rating at high levels clearly reflects international confidence in the strength of the Saudi economy, the resilience of its financial position, and its ability to meet its obligations under various economic conditions. He says this is an important indicator of the success of the fiscal and economic policies adopted by the Kingdom in recent years, particularly in managing public debt, controlling the budget deficit, diversifying sources of income away from oil, and improving the efficiency of government spending.

Al-Qahtani adds that a high credit rating has a direct impact on the economy by reducing the cost of sovereign borrowing, which in turn lowers financing costs for local companies and banks. This helps stimulate investment and expansion in major projects, strengthens financial sector stability, supports the national currency, and limits volatility during times of crisis.

Regarding foreign investment, the economic analyst explains that these ratings serve as a global seal of confidence, sending a reassuring message to investors that Saudi Arabia is a safe and stable environment for long-term investment, and that its credit risks are lower compared with other emerging markets. This increases the attractiveness of the Saudi market to sovereign wealth funds, pension funds, and global companies that require high credit ratings before entering any market.

Foreign investment increased fivefold

Saudi Minister of Investment Khalid Al-Falih said in remarks on the sidelines of the World Economic Forum 2026 that foreign direct investment inflows into the Kingdom have increased by around five times since the launch of Saudi Vision 2030 in 2016. He stressed that Saudi Arabia is now among the most attractive economies for capital in emerging markets.

He explained that the share of capital formation in Saudi Arabia’s gross domestic product now matches levels recorded in major economies such as China and India, pointing to the accelerating pace of investment and the expansion of the Kingdom’s productive base. He added that Saudi Arabia is continuing to implement its economic and investment reforms to ensure sustainable growth and enhance the competitiveness of the national economy, despite challenges facing the global economy.

Al-Qahtani adds that Saudi Arabia benefits from these ratings by accelerating the achievement of Vision 2030 targets, as they enable the Kingdom to finance major infrastructure projects as well as tourism, industrial, and technology projects on better terms and at lower interest rates, in addition to strengthening partnerships with the local and international private sector. Ultimately, maintaining and upgrading the credit rating is not merely a number or a grade, but a reflection of a more mature, resilient economy capable of sustainable growth, giving the Kingdom greater room for economic and financial maneuver in the future.