Fitch Ratings has raised Saudi Arabia's long-term foreign-currency default rating due to the kingdom's economic diversification efforts, "formidable" finances and low government debt.
The ratings agency upgraded the kingdom's rating to 'A+' from 'A' with a stable outlook, it said in a statement on Wednesday.
The investment grade rating highlights the strong capacity of the kingdom to meet its financial commitments.
The upgrade reflects the kingdom's "strong fiscal and external balance sheets, with government debt/gross domestic product and sovereign net foreign assets [SNFA] considerably stronger than both the 'A' and 'AA' medians, and significant fiscal buffers in the form of deposits and other public sector assets”, Fitch said.
“The upgrade also assumes ongoing commitment to gradual progress with fiscal, economic and governance reforms.”
In reference to the kingdom's strong finances, Fitch cited Saudi Arabia's foreign reserves excluding gold which reached $459 billion last year.
It said investments and deposits abroad offset the substantial current account surplus, which is about 13.6 per cent of GDP equivalent to about $150 billion. Gross government debt to GDP declined to 23.8 per cent last year.
Last month, S&P Global Ratings upgraded Saudi Arabia’s rating to “A/A-1” from “A-/A-2” and assigned it a stable outlook.
Saudi Arabia has one of the highest reserve coverage ratios of country's rated by Fitch. The kingdom's ratio is estimated at 18 months of current external payments.
Saudi Arabia, the Arab's world's largest economy, is in the middle of a major economic diversification drive under its Vision 2030 agenda, amid a push to reduce its reliance on oil and tap into other high-growth industries to boost its economy, create more jobs and attract private investment.
The kingdom recorded the highest annual growth rate among the world’s 20 biggest economies in 2022, according to the Organisation for Economic Co-operation and Development.
Its economy expanded 8.7 per cent last year on higher oil prices and the strong performance of its non-oil private sector.
Business activity in Saudi Arabia’s non-oil private sector economy remained robust in March with the latest purchasing managers' index remaining in expansionary territory as output and new business accelerated, further supporting employment growth in the kingdom.
Increased government spending as part of the kingdom's investment strategy under Vision 2030 can spur returns in the form of sustained higher non-oil GDP growth and job creation to meet the expanding national labour force, Fitch said.
Saudi Arabia's non-oil economy will continue to gain traction with a growth of 5 per cent in the non-oil private sector this year, supported by higher government capex, investments by the Public Investment Fund including giga projects, robust credit growth, ongoing development of retail and entertainment sectors and employment gains among Saudis and expats, according to Fitch.
The kingdom's sovereign wealth fund, the Public Investment Fund is investing heavily to build new projects in the kingdom. It is mandated to pump $40 billion to $50 billion into the local economy to generate jobs and boost the non-oil economic base of the country.
Fitch expects a gradual improvement in the kingdom's fiscal structure and a higher spending profile for 2023-2025.
The rating agency said the kingdom's fiscal break-even oil price increased last year to $86 a barrel and the non-oil primary deficit to non-oil GDP widened.
Government decision-making was "strategic, reflecting a policy balance between supporting Vision 2030 projects and responding to higher inflation on the one hand and remaining fiscally prudent", Fitch said.
Fitch estimates fiscal break-even oil price of $76 a barrel in 2025 compared with a previous $70 a barrel projection. It said the non-oil primary balance to non-oil GDP will continue to improve, narrowing to 23 per cent in 2025 from 31 per cent in 2022 and 41 per cent in 2016.
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hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66
RESULT
Manchester United 2 Tottenham Hotspur 1
Man United: Sanchez (24' ), Herrera (62')
Spurs: Alli (11')
WWE Evolution results
- Trish Stratus and Lita beat Alicia Fox and Mickie James in a tag match
- Nia Jax won a battle royal, eliminating Ember Moon last to win
- Toni Storm beat Io Shirai to win the Mae Young Classic
- Natalya, Sasha Banks and Bayley beat The Riott Squad in a six-woman tag match
- Shayna Baszler won the NXT Women’s title by defeating Kairi Sane
- Becky Lynch retained the SmackDown Women’s Championship against Charlotte Flair in a Last Woman Standing match
- Ronda Rousey retained the Raw Women’s title by beating Nikki Bella
HOW TO WATCH
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Four motivational quotes from Alicia's Dubai talk
“The only thing we need is to know that we have faith. Faith and hope in our own dreams. The belief that, when we keep going we’re going to find our way. That’s all we got.”
“Sometimes we try so hard to keep things inside. We try so hard to pretend it’s not really bothering us. In some ways, that hurts us more. You don’t realise how dishonest you are with yourself sometimes, but I realised that if I spoke it, I could let it go.”
“One good thing is to know you’re not the only one going through it. You’re not the only one trying to find your way, trying to find yourself, trying to find amazing energy, trying to find a light. Show all of yourself. Show every nuance. All of your magic. All of your colours. Be true to that. You can be unafraid.”
“It’s time to stop holding back. It’s time to do it on your terms. It’s time to shine in the most unbelievable way. It’s time to let go of negativity and find your tribe, find those people that lift you up, because everybody else is just in your way.”
UAE currency: the story behind the money in your pockets
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Teams in the EHL
White Bears, Al Ain Theebs, Dubai Mighty Camels, Abu Dhabi Storms, Abu Dhabi Scorpions and Vipers
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Five expert hiking tips
Always check the weather forecast before setting off
Make sure you have plenty of water
Set off early to avoid sudden weather changes in the afternoon
Wear appropriate clothing and footwear
Take your litter home with you
The specs
Engine: 3.9-litre twin-turbo V8
Power: 640hp
Torque: 760nm
On sale: 2026
Price: Not announced yet
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
