Fitch said Saudi Arabia’s government debt and sovereign net foreign assets remain significantly stronger than the median for countries rated in the ‘A’ and ‘AA’ categories. According to the agency, these financial strengths, together with sizeable fiscal reserves, provide the Kingdom with greater resilience against economic and geopolitical uncertainties.
The agency also noted that Saudi Arabia has maintained economic stability despite regional tensions through prudent fiscal management and sustained growth in its non-oil economy.
Non-oil economy and banking sector remain key strengths
Fitch identified economic diversification as one of Saudi Arabia’s major credit strengths, highlighting continued expansion in non-oil sectors alongside resilient consumer spending and improving business confidence.
The ratings agency also described the Kingdom’s banking sector as well-capitalised and resilient, citing strong capital levels, low non-performing loans and healthy deposit growth. Fitch added that banks have remained stable without requiring central bank support during recent regional geopolitical developments.
Growth expected to strengthen from 2027
While Fitch expects Saudi Arabia’s real GDP growth to moderate to 0.6% in 2026, it forecasts stronger growth in 2027 as maritime traffic through the Strait of Hormuz normalises, supporting higher oil and petrochemical production.
The agency also expects economic activity to benefit from the phased rollout of giga-projects, continued investment by the Public Investment Fund (PIF), recovering business confidence and resilient consumer spending.
Fitch projects Saudi Arabia’s international reserves to remain equivalent to around 11.6 months of current external payments in 2026, significantly above similarly rated sovereigns, while sovereign net foreign assets are expected to remain an important credit strength over the coming years.
What the rating means for businesses
While Fitch’s rating does not directly change regulations or investment incentives, it reinforces Saudi Arabia’s position as a stable destination for long-term business investment and expansion.
The agency’s assessment points to continued public investment, strong fiscal buffers, a resilient banking system and improving economic diversification as factors supporting a favourable operating environment. For businesses considering investment, hiring, lending or expansion in the Kingdom, the reaffirmed A+ rating signals confidence in Saudi Arabia’s overall economic stability rather than any immediate policy change.
