Saudi Arabia's long-term and short-term (A / A-2) sovereign debt rating having a stable positive outlook was reaffirmed by the global credit rating agency Standard & Poor's.
The agency said that the stable outlook is based on expectations that moderate economic growth will continue until the end of 2021, supported by increased government investment.
S&P said it did not expect a significant deviation from official target levels of public finances, noting that the increase in budget expenditures in Saudi Arabia is offset by an increase in revenues.
However, it expected Saudi authorities to continue to take steps to further stabilize public finances over the next two years while maintaining government assets, predicting stability for economic growth.
On oil, the agency expected oil production in Saudi Arabia to remain around current levels--kingdom plans to produce 10.7 million bpd in October.
Despite increased spending, it expects fiscal consolidation to continue as oil prices rise in 2018.
The price of a barrel of oil stood at over $ 85 a barrel.
The Kingdom has an economic reform plan aimed at diversifying its sources of income and reducing oil dependence, it is a part of a larger more comprehensive national transformation plan known as Kingdom Vision 2030.
Saudi Arabia also has a sovereign wealth fund, which Saudi Crown Prince Mohammed bin Salman confirmed will exceed its $600 billion target by 2020 as economic diversification develops.
In an interview with Bloomberg, Saudi Crown Prince Mohammed bin Salman the Public Investment Wealth(PIF) will surpass its target of increasing its assets to $600 billion by 2020, as part of a plan to reduce the economy’s dependence on oil.
“We are now above $300 billion, we’re getting close to $400 billion. Our target in 2020 is around $600 billion. I believe we will surpass that target in 2020,” he told Bloomberg.
