Moody’s on Friday boosted Saudi Arabia’s outlook because of the kingdom’s progress in diversifying away from its all-important oil sector.
The rating agency lifted Saudi Arabia’s outlook from stable to positive, saying that it is positioned to hold up as countries are expected to reduce their reliance on oil over time.
“Transformative social reforms, albeit from a low base, have already unlocked an array of growth opportunities in the domestic tourism, leisure and entertainment sector, which constitute a large share of the initial diversification agenda,” Moody’s wrote.
“The sovereign’s economic and fiscal reliance on hydrocarbons will, over time, materially decline, thereby reducing its exposure to oil price cycles and a potential acceleration in global carbon transition.”
S&P Global on Friday raised Saudi Arabia’s credit score by a level to A, also nodding to its reforms.