-Moody’s has affirmed Saudi Arabia’s ‘A1’ credit rating with a positive outlook, reflecting the government’s progress in implementing broad-based reforms since 2016.

-The rating agency highlighted the Kingdom’s effective macroeconomic and fiscal policies, and the continued implementation of large-scale diversification projects designed to support nonhydrocarbon GDP growth.

 -The positive outlook is based on ongoing reforms and investments in non-oil sectors, which are expected to decrease Saudi Arabia’s economic and fiscal reliance on hydrocarbons, along with the country’s robust balance sheet and significant foreign currency reserves.

Moody’s, the global credit rating agency, has affirmed Saudi Arabia’s ‘A1’ credit rating with a positive outlook, according to media reports.

The rating affirmation reflects Moody’s assessment of the government’s significant progress in implementing a broad-based reform agenda since 2016. It also highlights the effectiveness of the Kingdom’s macroeconomic and fiscal policies, which support sustainable economic diversification.

Moody’s expects the continued implementation of large-scale diversification projects in Saudi Arabia to bolster nonhydrocarbon real GDP growth, as these projects are designed to be modular and commercialized in phases.

The positive outlook is attributed to the ongoing reforms and investments in various non-oil sectors, which are anticipated to reduce the Kingdom’s economic and fiscal dependence on hydrocarbons over time.

Additionally, Moody’s noted the country’s large economy, improving institutions and policy effectiveness, robust balance sheet, and substantial foreign currency reserves.