The global credit rating agency S&P Global confirmed in its latest report that the net government assets of the Kingdom of Saudi Arabia constitute a key pillar that gives the Saudi economy great credit flexibility, which enhances the Kingdom’s ability to face global economic and geopolitical challenges.
Strong support for Vision 2030 programs
The agency explained that the Kingdom is currently leading one of the world's most ambitious economic transformation programs, "Saudi Vision 2030." This program, which aims primarily to reduce the historical dependence on oil and gas revenues, requires massive government spending to finance mega-projects and develop non-oil sectors. S&P noted that the strength of Saudi Arabia's financial position provides the necessary cover to sustain this high level of capital spending without negatively impacting the country's creditworthiness.
Strategic infrastructure and securing energy exports
In discussing global energy security, the report addressed the Kingdom's strategic infrastructure. Saudi Arabia exports approximately 6.5 million barrels of oil per day, with nearly 80% of that volume passing through the Strait of Hormuz. To mitigate potential geopolitical risks, the agency highlighted the importance of the East-West pipeline system, which has an additional spare capacity of 3.3 million barrels per day, bringing its total capacity to 5 million barrels per day. This facility is crucial for maintaining export revenue flows and stabilizing energy markets in the event of any disruptions to the waterways.
Limited impact of geopolitical tensions
The agency ruled out a significant impact of a potential escalation between Iran and the United States on the credit ratings of Gulf countries, citing past scenarios in June 2025 where military tensions were limited in scope and targeted specific objectives. Accordingly, the agency maintained its stable outlook for the sovereign ratings of the Gulf Cooperation Council (GCC) countries, supported by their strong fiscal surpluses and reserves.
A significant increase in reserve assets (SAMA data)
In parallel with the credit rating report, data from the Saudi Central Bank (SAMA) showed strong financial performance, with the Kingdom's foreign reserve assets reaching their highest level in six years. In January 2026, the value of these assets increased by approximately SAR 58.7 billion (3%) to reach SAR 1,784.5 billion, compared to December 2025.
On an annual basis, net foreign assets saw a significant jump of 10%, equivalent to an increase of SAR 155.8 billion. This growth reflects the Kingdom's prudent fiscal policy and strong revenue management.
Distribution of foreign reserve components
The increase was driven by growth in various components of reserve assets, as detailed below:
- Foreign currencies: Their value increased by 10% to reach 1689.3 billion riyals, and they constitute the largest share (about 95%) of total assets.
- International Monetary Fund: The value of the reserve held by the Fund increased by 9% to reach 13.1 billion riyals.
- Special Drawing Rights: Recorded a growth of 5% to reach 80.5 billion riyals.
- Monetary gold: It maintained its stability at levels of 1.62 billion riyals, which is the same level since January 2008.
It is worth noting that these positive financial indicators provide reassuring messages to international investors about the strength of the Saudi economy and its ability to meet its obligations and finance its future projects with high efficiency.
