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Fitch Ratings affirmed Saudi Arabia’s long-term foreign-currency issuer default rating at A+ with a stable outlook in its latest sovereign report. The agency’s assessment found the kingdom’s credit profile supported by government debt and sovereign net foreign assets that remain markedly stronger than averages for A and AA category peers. Substantial fiscal buffers have enabled economic resilience despite regional geopolitical developments, driven by robust non-oil activity and careful fiscal management, according to the report.
Fitch projected real GDP growth moderating to 0.6 percent in 2026 before rebounding the following year as maritime traffic through the Strait of Hormuz normalizes and supports elevated oil and petrochemical production. Phased giga-project rollouts, continued Public Investment Fund spending, recovering business confidence and resilient consumer outlays will provide additional impetus. The banking sector stays sound with strong capital buffers, low non-performing loans and no need for central bank support during recent regional strains, Fitch noted.
International reserves are seen holding at levels equivalent to about 11.6 months of current external payments in 2026, far surpassing the median for similarly rated sovereigns, the assessment indicated. Sovereign net foreign assets are expected to remain a central credit strength in coming years. The report further highlighted ongoing improvements in governance, institutional frameworks and economic diversification as factors bolstering the rating.
According to the International Monetary Fund’s June 2026 Article IV mission, the Saudi economy entered the year with strong momentum after expanding 4.5 percent in 2025 on the back of non-oil gains and easing OPEC+ production curbs. IMF data from its July 2026 World Economic Outlook update places projected real GDP growth at 1.7 percent for 2026. The fund cited resilient domestic demand and structural reforms under Vision 2030 as key supporting elements.
The World Bank has projected non-oil GDP to rise at an average 3.6 percent annually between 2025 and 2027 amid the kingdom’s diversification push. This path aligns with strengths Fitch has identified in maintaining the investment-grade rating through successive evaluations. Such trends have helped anchor fiscal and external stability as global energy dynamics shift.
Fitch has upheld the A+ rating with stable outlook through multiple reviews in recent years, consistently emphasizing the same foundational credit attributes. World Bank figures show Saudi GDP per capita at roughly 34,537 dollars in 2025, illustrating broad economic progress. The latest affirmation underscores the effectiveness of policies aimed at sustaining macroeconomic stability while advancing long-term development goals.
