Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

Saudi Arabia on course to reverse debt burden: Moody's

Saudi Arabia on course to reverse debt burden: Moody's

Saudi Arabia looks set to reverse most of the 2020 increase in its debt burden over the next several years while also rebuilding its fiscal buffers, a report released by global rating agency Moody’s said.
The firm’s predictions were based on their assessment of the Kingdom's improving track record of fiscal policy effectiveness, together with the strength of institutions and governance in the country. 

This is reflected by the robust effectiveness of the Kingdom’s monetary and macroeconomic policies.

Saudi public debt issuance increased by nearly 50 percent in 2020 to SR163 billion ($43.4 billion) according to the Capital Market Authority.

Saudi Arabia's policy responses to both periods of low and high oil prices, the report said, demonstrates a commitment to fiscal consolidation and longer-term fiscal sustainability.

The report referenced the growth in the Saudi economy by 10.2 percent in the first nine months of 2022, driven by the recovery of oil production and accelerated growth in the non-oil sector.

The global rating agency showed that the Kingdom’s march towards economic diversification is on track, with the report emphasizing the strong growth in Saudi Arabia’s non-oil sector during 2021 and 2022 — at an average of 5 percent annually until the second quarter of 2022.

The report said that the growth would likely be sustained with a number of the Kingdom’s giga projects moving from design into construction phase.

In a report released in October, Moody’s said the Kingdom's decision to increase its planned spending by 18 percent will reduce windfall savings from oil, but the move could help the Kingdom accelerate its economic diversification

On Sept. 30, the Saudi government announced that it plans to revise its spending upward to around SR175 billion in 2022-24, compared to the targets previously published at the end of 2021.

The increase amounted to around 4-4.5 percent of the Kingdom’s GDP.

Speaking earlier this month after Saudi Arabia approved the state budget for the coming fiscal year, which forecasts a surplus of SR16 billion and gross domestic product growth of 3.1 percent, the governor of the Saudi Central Bank said the country’s monetary conditions are in good shape.

“Despite the exceptional circumstances in the Kingdom and the world, the Saudi economy … has proven a high ability to withstand shocks. Monetary conditions in the Kingdom are reassuring as a result of the central bank’s prudent monetary policy,” Fahad Almubarak said.

Almubarak commended the banking sector for “its financial solvency, operational efficiency, good liquidity, and ability to face current challenges.”
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×