Higher oil prices, an easing of Opec production quotas, and widespread vaccine rollout, will drive a rebound in Saudi Arabia’s economic growth in 2021-2024, said S&P Global Ratings in a new report.

S&P Global Ratings performed the semi-annual review of the credit ratings on the Kingdom of Saudi Arabia and has affirmed the A-/Stable/A-2 sovereign rating, said S&P Global Ratings in its latest RatingsDirect report.

The stable outlook indicates that an emergence from the pandemic and an improvement in oil sector dynamics, alongside Saudi Arabia's government and external net asset positions, will support the ratings.

In 2021 the economy has begun its recovery, and the country saw a particularly sharp rebound in real non-oil economic activity in the second quarter of 2021, with sectors including real estate, manufacturing, and wholesale and retail trade, restaurants and hotels improving.

Non-oil growth has seen a sharp rise, with real estate benefiting from government incentives for the sector, while non-oil manufacturing has benefited from a sharp increase in plastic and petrochemical exports.

Flexibility and performance profile: Stronger oil prices in 2021 and higher volumes from 2022, alongside government efforts at fiscal control, will support fiscal and external accounts in 2021-2024, said the RatingsDirect report. – TradeArabia News Service