The diversity of the economic base, available capabilities, and Saudi Arabia's logistics status have contributed to granting it positive and stable future ratings from global rating agencies, according to economic and political analyst Mohammed Al-Tayyar.

He added in an interview with Al Arabiya Business that what Saudi Arabia is achieving today is the result of the cumulative impact of Vision 2030 since its launch in April 2016 until 2026, noting that Saudi Arabia's regional and international presence has directly reflected on the credit ratings the Kingdom has obtained.

"Fitch" affirms Saudi Arabia's credit rating at "A+" with a stable outlook

He explained that the diversity of the Kingdom's economic base, available capabilities, and its logistics status have contributed to obtaining stable ratings with a positive outlook, noting that foreign investment stock has exceeded approximately one trillion riyals, while private sector investments account for about 75% of total investments compared to 25% for the government sector.

He added that Saudi monetary reserves are approaching $500 billion, along with the growing role of the Public Investment Fund and non-oil activities, stressing that these factors have provided multiple alternatives for the national economy during both times of stability and crises, which has positively reflected on the Kingdom's credit ratings.

He pointed out that public debt remains at low levels compared to many countries, reaching about 33% of GDP, indicating that these indicators, along with economic diversity and the Kingdom's strategic position, have supported confidence in the Saudi economy and contributed to enhancing its ratings.

He pointed out that the Kingdom continued to implement its development plans despite regional tensions and geopolitical challenges, stressing that what has been achieved is the fruit of Vision 2030 after nearly a decade of work and achieving a large proportion of targets, which has given the Saudi economy more flexibility and ability to face changes.

Continued growth

He explained that current debt levels are among the lowest compared to many economies, and that their increase when needed to finance growth projects is not a source of concern as long as the achieved economic returns exceed the cost of financing, noting that international institutions expect Saudi economic growth to continue over the next two years.

He added that the Kingdom continues to activate new sectors, foremost among them mining and investment in mineral wealth, along with enhancing investments in various economic fields, supporting sustainable development goals and enhancing growth opportunities in the long term.

He affirmed that Vision 2030 has been based from the start on investing in the Kingdom's strategic location as a link between the three continents of the world, explaining that the Kingdom's logistics location still possesses great potential that has not been fully invested yet.

He pointed out that recent regional developments have highlighted the importance of the Kingdom's geographical location and the importance of having diverse logistics alternatives, expecting that the next phase will witness greater expansion in logistics investments, especially in the northwest of the Kingdom, along with enhancing connectivity to global markets and developing logistics facilities and services.

He added that crises often create new opportunities for growth and investment, indicating that the Red Sea represents a major strategic opportunity for the Kingdom, whether through trade routes heading west or east, in addition to the potential available in the Eastern Region.

He pointed out that the integration of logistics, political, and economic factors, along with the strength of financial indicators, monetary reserves, and the trade balance, explains the position the Kingdom has reached in international ratings, expecting it to achieve better performance in the coming periods if the global economy sees more stability and growth.

The credit rating agency Fitch affirmed Saudi Arabia's credit rating at 'A+' with a stable outlook, according to its recently released report.

The agency explained that the Kingdom's credit rating reflects the strength of its financial position and large financial reserves, as government debt ratios and net sovereign foreign assets are significantly stronger than the averages for 'A' and 'AA' ratings.

The agency noted that despite geopolitical conditions, the Kingdom maintained the resilience of its economy through the flexibility of non-oil activities and its public budget.

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