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RIYADH: Fitch Ratings has affirmed ����ֱ��’s long-term foreign-currency issuer default rating at “A+” with a stable outlook.

The agency cited the Kingdom’s strong fiscal and external balance sheets, continued growth in the non-oil sector, and solid banking fundamentals as key drivers behind the rating.

Fitch also noted that ����ֱ��’s government debt levels and sovereign net foreign assets remain well above the medians for “A” and “AA” rated countries, supported by significant fiscal buffers in the form of deposits and other public sector assets.

The latest rating action comes as Gulf economies navigate the impact of lower oil prices while advancing economic diversification plans. The “A+” rating reflects ����ֱ��’s fiscal and external buffers built over years of high oil revenues, even as the Kingdom faces widening deficits due to large-scale investment spending.

In its rating commentary, Fitch stated: “Oil dependence, World Bank governance indicators and vulnerability to geopolitical shocks have improved but remain weaknesses.” 

Despite pressure from reduced oil revenues and rising fiscal and current account deficits, Fitch emphasized that ����ֱ��’s external reserves are expected to remain “large relative to peers,” averaging 12.8 months of current external payments in 2025 — well above the “A” median of 1.8 months.

However, the agency warned that the Kingdom is likely to gradually shift to a net external debtor position by 2027, due to sustained external borrowing and a strong domestic investment orientation.

The report also reviewed regional peers, highlighting that neighboring countries have maintained strong credit profiles. In July, the UAE’s long-term foreign-currency rating was affirmed at “AA-” with a stable outlook, supported by low consolidated government debt, a strong net external asset position, and high gross domestic product per capita.

Fitch also pointed to Abu Dhabi’s sovereign net foreign assets — equivalent to 157 percent of the UAE’s GDP in 2024 — as among the highest of all Fitch-rated sovereigns.

In May, Qatar retained its “AA” rating with a stable outlook, driven by its expanding liquefied natural gas production capacity and one of the highest per capita GDP levels globally. The agency highlighted Qatar’s flexible public finance framework as a key factor in enhancing economic resilience.

Similarly, in March, Kuwait’s long-term foreign-currency rating was reaffirmed at “AA-” with a stable outlook.

For ����ֱ��, Fitch projected a budget deficit of 4 percent of GDP in 2025, mainly due to lower oil income and a significantly reduced dividend from Saudi Aramco.

“Growth in current spending should be contained, and we expect capex to fall in line with ongoing project recalibration,” the report stated.

The deficit is expected to narrow to 3.6 percent by 2027, supported by rising non-oil revenue, higher oil production, and government spending growing more slowly than nominal GDP.

Fitch also underscored the Kingdom’s ongoing economic transformation under Vision 2030. It noted that GDP rebasing led to a 14 percent upward revision of the 2024 headline GDP figure, “almost entirely due to a 28 percent increase in the non-oil private sector (now 56 percent of GDP).”

Real GDP growth is projected at 4.3 percent in 2025, rising to 4.7 percent in 2026 before easing to 3.6 percent in 2027, driven by increased oil production and steady expansion in the non-oil sector. Non-oil growth is forecast to average 4.5 percent during this period, underpinned by continued public and government-related entity spending.

RIYADH: Saudi and Syrian business leaders affirmed their readiness to support the redevelopment of Syria’s energy infrastructure following a high-level meeting in Riyadh. 

The participants presented proposals for joint projects focused on conventional and renewable energy sectors, signaling a potential shift toward greater regional investment collaboration. 

During the meeting, which included members of the Syrian expatriate community and Saudi business executives, Syrian Minister of Energy Mohammed Al-Bashir outlined the ministry’s recent achievements and its strategic direction despite prevailing challenges, the Syrian Arab News Agency reported. 

He said economic partnerships and investor engagement are essential to advancing the energy sector and welcomed collaborative initiatives aimed at bolstering development efforts. 

The talks coincide with a broader renewal of Saudi-Syrian relations, underlined by the July Syrian-Saudi Investment Forum held in Damascus. 

In a follow-up to that momentum, business leaders at the recent Riyadh meeting “affirmed their readiness to help rebuild infrastructure and expand investment opportunities in both conventional and renewable energy,” according to the report by SANA. 

The forum united over 120 investors and executives from the Kingdom’s public and private sectors and witnessed the signing of 47 agreements and memoranda of understanding valued at SR24 billion ($6.4 billion). 

The conference also marked a significant deepening of bilateral cooperation across various sectors, including energy, real estate, infrastructure, telecommunications, and finance. 

The recent meeting builds on the SR11 billion in infrastructure commitments made during the forum, notably the inauguration of the Fayhaa White Cement Factory in Adra Industrial City. 

The plant, backed by a $20 million investment from Northern Region Cement Co., is the first of its kind in Syria and is projected to create over 1,100 direct and indirect jobs. 

Additional agreements worth SR4 billion targeted the telecommunications sector, while cooperation in agriculture, financial services, health care, education, and IT were also highlighted. 

The forum’s economic significance builds upon recent diplomatic and financial milestones. 

����ֱ�� officially reopened its embassy in Damascus in 2024 after a 12-year hiatus. 

In April, the Kingdom, in coordination with Qatar, settled Syria’s $15 million debt to the World Bank, enabling access to multilateral funding for redevelopment. 

Syrian and Saudi officials emphasized the historical and cultural ties between the two nations, framing the forum as a key moment in rebuilding economic cooperation. 

Syrian Economy Minister Mohammad Al-Shaar described the event as a “historic milestone,” while Saudi Minister of Investment Khalid Al-Falih underscored the Kingdom’s long-term commitment to supporting Syria’s path to recovery and sustainable growth.