International credit rating agency Moody’s has updated its credit report for Saudi Arabia, affirming its A1 rating for the kingdom and revising the stable outlook rating to positive.

 

It is based on Moody's assessment of the government's track record of fiscal policy effectiveness and the comprehensive regulatory and economic reforms that will support the sustainability of the economic diversification efforts over the medium and long terms, including the reforms and investments in various non-oil sectors that will reduce the Kingdom’s reliance on hydrocarbons over time.

 

The agency also lauded the important role of the government-sponsored diversification projects and initiatives, supported by private sector investment, and their positive impact on economic growth and improved outlook rating, reported SPA.

 

Moody’s report is a validation of the kingdom’s fiscal policies, which contribute to maintaining fiscal sustainability and improving public financial management as well as raising the level of fiscal planning with a view to enhancing the kingdom's economic growth and making efficient use of resources under its Fiscal Sustainability Program, one of the Vision 2030 programmes. 

 

It is mainly aimed at keeping the debt at a moderate level, which is lower than most similarly rated sovereign debts, thus offering robust fiscal buffers and a competitive position in the global energy market, it added.