RIYADH — Fitch Ratings has affirmed Saudi Arabia’s long-term foreign currency issuer default rating at ‘A+’ with a stable outlook, citing the country’s strong financial position, large financial reserves and resilient economy.
Fitch said in its latest report that Saudi Arabia’s credit profile is supported by government debt and sovereign external net assets, which are significantly higher than the average for countries rated in the ‘A’ and ‘AA’ categories, as well as substantial fiscal buffers.
The agency said Saudi Arabia remains economically resilient despite geopolitical developments in the region, supported by strong non-oil economic activities and prudent fiscal management.
Fitch noted that Saudi Arabia’s banking sector remains healthy, with high capital levels and low non-performing loans, and does not require central bank support despite recent regional tensions.
The agency expects Saudi Arabia’s real GDP growth to slow to 0.6% in 2026 and recover in 2027, supported by normalization of maritime traffic through the Strait of Hormuz and increased production of oil and petrochemicals.
Growth is also expected to be supported by the gradual rollout of Saudi megaprojects, continued public investment fund spending, a rebound in business confidence and strong consumer spending.
Fitch highlighted Saudi Arabia’s strong external balance sheet, projecting that foreign exchange reserves will remain equivalent to approximately 11.6 months of current external payments in 2026, well above the median of similarly rated sovereigns.
The agency also said that Saudi Arabia’s net external assets will remain an important credit asset in the coming years, while the Saudi banking sector is resilient, well-capitalized and supported by strong deposit growth.
Fitch added that Saudi Arabia continues to benefit from improved governance, stronger institutions and an increasingly diversified economy.
