TLDR:Saudi Arabia maintains A+ credit rating with net foreign assets at 70% of GDP and debt below 30% threshold.Kingdom posted 2.3% fiscal deficit in 2025 while sustaining spending controls and improving non-oil revenues.Economy grew 2.4% in 2025, below projections due to lower oil output and global economic headwinds impact.Vision 2030 shows mixed progress with investment gains, but oil volatility and geopolitical risks threaten outlook. Fitch Ratings has reaffirmed Saudi Arabia’s long-term foreign-currency issuer default rating at ‘A+’ with a stable outlook. The rating agency cited the kingdom’s robust fiscal buffers, low debt levels, and strong external position. This affirmation reflects confidence in Riyadh’s ability to manage oil-driven revenues while advancing structural reforms under Vision 2030. The decision comes amid continued fiscal discipline and improved budget transparency.Strong Fiscal Position Supports Credit RatingThe rating agency estimates Saudi Arabia’s net foreign assets at approximately 70% of GDP. These assets include central bank reserves and holdings under the Public Investment Fund.General government debt remains well-controlled, projected at below 30% of GDP for the current period. This figure stands significantly lower than the ‘A+’ peer median of 54%, demonstrating superior fiscal management.Saudi Arabia recorded a modest fiscal deficit of 2.3% of GDP in 2025. However, the government has maintained strict spending controls throughout the period. Fitch highlighted improvements in non-oil revenue collection and steady capital investments as key factors. These elements provide crucial buffers against oil price volatility and market fluctuations.The rating agency praised enhanced fiscal transparency measures implemented by Saudi authorities. Improved budget disclosures and better macroeconomic data reporting have strengthened investor confidence. Meanwhile, the government’s medium-term budget framework continues to anchor economic stability. This framework has helped maintain fiscal consolidation despite challenging global conditions.Vision 2030 Progress Shows Mixed ResultsFitch views Vision 2030 progress as mixed, noting achievements in investment attraction and privatization initiatives. The diversification strategy remains central to Saudi Arabia’s long-term economic growth plans. However, structural transformation of the non-oil sector continues to evolve gradually. The kingdom faces ongoing challenges in accelerating this critical transition.The Saudi economy expanded by 2.4% in 2025, falling short of earlier growth projections. Lower oil output and global economic headwinds primarily contributed to this underperformance. The reduced production reflects OPEC+ agreements and broader market dynamics. These factors have constrained overall economic expansion despite non-oil sector gains.Fitch warned that the rating faces potential risks from several sources. Volatile oil markets remain a primary concern for the kingdom’s revenue base. Geopolitical tensions in the region could impact economic stability and investor sentiment. Additionally, uncertainties around non-oil sector development pace present ongoing challenges. Sustained reforms and policy consistency will prove critical for maintaining long-term credit strength.The post Fitch Affirms Saudi Arabia’s A+ Credit Rating Amid Strong Fiscal Buffers and Vision 2030 Progress appeared first on Blockonomi.