Video|20 March 2025

MENA | Saudi Arabia’s Credit Upgrade: What’s Driving the Growth?

Scott Livermore
Scott Livermore
Chief Economist & Managing Director
MENA | Saudi Arabia’s Credit Upgrade: What’s Driving the Growth?


S&P upgraded Saudi Arabia’s sovereign credit rating to A+ from A, citing governance improvements, Vision 2030-driven non-oil sector growth among key drivers, and the importance of calibrated fiscal expansion. This aligns with our view that non-oil activities will remain the primary driver of growth this year, supported by government investment and private sector expansion. Although we expect higher borrowing levels, with the debt-to-GDP ratio edging above 30% in 2025, debt levels will remain low by global standards.


Meanwhile inflation in Saudi Arabia held at 2.0% in February, with housing prices remaining the dominant contributor. We expect inflation to gradually rise through the year, averaging 2.2% in 2025 as a whole up from 1.7% in 2024. Oman’s inflation also held steady in February, remaining at 1.0%. We expect Oman’s inflation to also rise gradually and average 1.7% in 2025.


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