RIYADH — Moody's, a global credit rating agency, has reaffirmed Saudi Arabia's credit rating at "A1" and maintains a positive outlook.

The decision reflects the Kingdom’s significant strides in implementing a comprehensive reform agenda initiated in 2016.

According to Moody's, these efforts have effectively bolstered macroeconomic stability and fiscal policies, contributing to the sustainability of the country's economic diversification plans.

The report highlights the ongoing implementation of substantial diversification projects within Saudi Arabia, expected to enhance non-hydrocarbon real GDP growth. These projects are strategically designed to be modular and are being commercialized in phases, which aligns with the Kingdom’s broader economic objectives.

Moody's optimistic outlook also stems from the transformative reforms and investments across various non-oil sectors, anticipated to substantially reduce the Kingdom's economic and fiscal dependency on hydrocarbons over time.

Further, the agency noted Saudi Arabia’s robust economic framework, marked by an improving landscape of institutional and policy effectiveness, a strong balance sheet, and substantial foreign currency reserves, all of which support the positive rating and outlook.

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