Moody’s affirms Saudi Arabia’s Aa3 rating with stable outlook

RIYADH — Moody’s has affirmed Saudi Arabia’s sovereign credit rating at “Aa3” with a stable outlook, citing the Kingdom’s strong economy, vast oil wealth and continued progress under Vision 2030 reforms.The agency said on Friday the rating reflects the resilience of the Saudi economy, supported by its large hydrocarbon resources and strong competitive position in global energy markets, alongside improvements in government institutions and policy effectiveness.Moody’s also highlighted the positive impact of Saudi Vision 2030 in driving non-oil economic growth through sustained government investments, structural reforms and improved fiscal and economic transparency.The stable outlook reflects Saudi Arabia’s ability to withstand regional geopolitical tensions and potential disruptions, supported by its economic flexibility and strategic infrastructure, including the East-West pipeline that enables crude oil exports through the Red Sea.The agency expects Saudi Arabia to continue advancing economic diversification over the coming years as a result of wide-ranging reforms across judicial, economic and social sectors.According to Moody’s, these reforms have accelerated growth in the services sector and strengthened the non-oil economy.The agency also projected non-oil private sector GDP growth to recover to between 4% and 5% once regional geopolitical tensions ease, among the highest growth rates in the Gulf region.Moody’s said the outlook reflects the continued momentum of structural reforms, sustained government investment and the increasing contribution of the private sector to economic growth.The latest assessment follows a recent decision by S&P Global Ratings to affirm Saudi Arabia’s credit rating at A+/A-1 with a stable outlook.