Rating upgrade allows Saudi to issue more favorable bonds, sukuk: NDMC

The National Debt Management Center (NDMC) said that Saudi Arabia’s credit rating upgrade by S&P Global will allow the Kingdom to issue international bonds and sukuk with more favorable financial terms, while reducing borrowing costs.

This will, in turn, support development projects and boost non-oil economic growth.

NDMC affirmed that the rating upgrade implies the success of Saudi Arabia’s economic diversification policies, which have become a key pillar in insulating the economy from global fluctuations, Al-Eqtisadiah reported. It attributed the upgrade to economic and structural transformations under Vision 2030, which have enhanced governance efficiency, financial transparency, and diversified economic support mechanisms, reinforcing the Kingdom’s position on the global stage.

Meanwhile, a comprehensive strategy was unveiled by NDMC focusing on enhancing financial transparency by analyzing global rating methodologies, diversifying debt instruments and extending maturities, accelerating structural reforms in non-oil sectors, and improving labor market efficiency and digital infrastructure.

Additionally, the center collaborates with global rating agencies to ensure an accurate representation of Saudi Arabia’s economy. It also watches the impact of the rating upgrade on financial markets, including narrowing bond yield spreads and boosting foreign direct investment inflows.

Saudi Arabia’s credit rating was raised by S&P Global from A to A+ with Stable outlook. The Kingdom’s real GDP was expected to grow 4% between 2025 and 2028.