Moody's Upgrades Saudi Arabia's Credit Rating to 'Aa3' Stable

Photo : SPA

Moody's, a well-known credit rating agency, has raised Saudi Arabia’s credit rating to "Aa3" for both local and foreign currency. The outlook for the country remains stable.

This upgrade happened because Saudi Arabia has been making good progress in changing its economy. The country is growing its non-oil industries, which helps reduce its dependence on oil. This will protect the Kingdom from changes in oil prices and the shift to clean energy.

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Moody's also praised Saudi Arabia for managing its money well. The government is focusing on spending wisely and using its resources to grow businesses that are not based on oil. This will help the country stay strong in the future.

The report said Saudi Arabia is expected to have a steady budget deficit, between 2% and 3% of its total income (GDP). This means the government is controlling its spending well.

Moody’s expects Saudi Arabia’s non-oil businesses to grow by 4% to 5% in the next few years. This is one of the highest growth rates in the Gulf region. It shows that the country’s plan to rely less on oil is working.

In the past few years, Saudi Arabia has received several credit rating upgrades. These upgrades show that the country’s economy is improving because of its new money plans and smart spending. This has made Saudi Arabia's financial position stronger.