Catenaa, Monday, January 19, 2026– Fitch Ratings has affirmed Saudi Arabia’s long-term foreign-currency issuer default rating at ‘A+’ with a stable outlook, highlighting the kingdom’s strong fiscal buffers, low debt levels, and resilient external position. The rating reflects confidence in Riyadh’s capacity to manage oil-driven revenues while pursuing structural reforms under Vision 2030.
Fitch estimates net foreign assets at about 70% of GDP, supported by central bank reserves and assets under the Public Investment Fund (PIF). General government debt remains modest, projected at below 30% of GDP, significantly lower than the ‘A+’ peer median of 54%.
Despite a modest fiscal deficit of 2.3% of GDP in 2025, Saudi Arabia has maintained spending control. Fitch cited improvements in non-oil revenue and steady capital investments as buffers against oil price volatility. The government’s fiscal consolidation and medium-term budget framework continue to anchor stability.
The rating agency also noted enhanced fiscal transparency, with improved budget disclosures and macroeconomic data. Still, Fitch warned that the rating faces risks from volatile oil markets, geopolitical tensions, and uncertainties around the pace of non-oil sector development.
Vision 2030 remains central to Saudi Arabia’s long-term growth strategy. Fitch views its progress as mixed, noting successes in investment and privatisation while emphasising that structural diversification is still evolving. The economy grew by 2.4% in 2025, below earlier projections, due largely to lower oil output and global economic headwinds.
Overall, Saudi Arabia’s A+ rating reflects strong sovereign fundamentals, a conservative fiscal stance, and solid external reserves. However, sustained reforms and policy consistency will be critical to maintaining long-term credit strength in a shifting global landscape.
