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Fitch Ratings Affirms Saudi Arabia’s Credit Rating At A+ With Stable Outlook

by THEFUTURE.TEAM

February 3, 2025

Fitch Ratings has affirmed Saudi Arabia’s credit rating at A+ with a stable outlook, attributing this to the Kingdom’s strong fiscal and external balance sheets.

Saudi Arabia’s Credit Rating

Fitch highlighted Saudi Arabia’s robust government debt/GDP ratio and sovereign net foreign assets (SNFA), which are significantly stronger than the ‘A’ and ‘AA’ medians. The agency also emphasized Saudi Arabia’s fiscal buffers, including deposits and other public-sector assets.

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While acknowledging improvements in oil dependence, governance indicators, and vulnerability to geopolitical risks, Fitch noted these remain relative weaknesses. The agency also praised the wide-reaching social and economic reforms under Vision 2030, which are helping diversify the Kingdom’s economy.

Fitch forecasts that Saudi Arabia’s SNFA will reach 63.7% of GDP in 2024-2025, well above the ‘A’ median of 8.7%. The agency noted that fiscal reforms aimed at reducing oil price volatility’s impact could further enhance the Kingdom’s rating. Fitch also expects strong growth in non-oil exports, particularly in the travel sector, which will contribute to reducing the services balance deficit.

Saudi Economy

Saudi Arabia’s economy grew by 1.3% in 2024, largely driven by a 4.3% rise in non-oil activities and a 2.6% increase in government activities, according to the General Authority for Statistics (GASTAT). However, the oil sector contracted by 4.5%.

In Q4 2024, real GDP growth surged to 4.4% year-on-year, the highest quarterly growth in two years. Non-oil activities led this growth, with a 4.6% rise, while the oil sector grew by 3.4%. Government activities increased by 2.2%.

The non-oil private sector showed strong growth in December, supported by domestic demand and a surge in exports, despite a slight moderation in overall growth. The Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) dropped to 58.4 in December from a 17-month high of 59 in November, signaling continued expansion.

Outlook and Inflation

Saudi Arabia has revised its GDP growth forecast for 2025 to 4.6%, down from 5.7%, with the 2026 forecast lowered to 3.5%. Inflation in 2024 remained between 1.5% and 2%, largely driven by rising housing rents, and is expected to stabilize at around 2% in the medium term, according to the IMF.

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Eurobank Wins Two Euromoney Awards Following Cyprus Merger

Eurobank has been named Cyprus’ Best Bank for 2026 by Euromoney, while also receiving the award for Best Bank for Large Corporates at the publication’s latest Awards for Excellence.

Merger Marks A Milestone

The awards recognise the bank’s performance during 2025, a year marked by the completion of the legal merger between Hellenic Bank and Eurobank Cyprus. The transaction created Eurobank Limited, which the group says is now Cyprus’ largest banking and insurance organisation, with assets exceeding €28 billion.

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Euromoney’s Awards for Excellence evaluate banks’ performance over the previous calendar year, with this edition covering January 1 to December 31, 2025.

Lending, Customers And Digital Growth

Eurobank said its business lending portfolio expanded by around 17 per cent during 2025, while its customer base grew to more than 710,000 retail clients and 11,500 business customers.

The bank also continued its digital expansion, saying more than 96 per cent of transactions are now completed through digital channels, and most financing applications are submitted via its mobile app.

Expanding International Presence

Eurobank also highlighted the opening of its first representative office in India, describing the move as a step toward strengthening business links between Cyprus and India while supporting Cyprus’ role as a gateway to the European Union for Indian businesses and investors.

According to the bank, Euromoney recognised not only the successful completion of the merger but also its lending growth, digital transformation and contribution to Cyprus’ position as an international business and investment hub.

CEO On The Awards

“The Euromoney awards confirm Eurobank’s strong momentum and the successful implementation of our group’s strategy in Cyprus,” Chief Executive Michalis Louis said.

He said the merger strengthened the bank’s ability to support households, businesses and the wider economy, while highlighting continued investment in digital services and the opening of the representative office in India as key milestones during the year.