RIYADH: S&P Global Ratings on Monday affirmed Saudi Arabia’s credit ratings, saying the kingdom’s sweeping reforms could make it attractive to investors in the medium term despite underlying risks.

The agency maintained its “A-/A-2” ratings on Saudi Arabia and said its outlook was stable, citing expectations the government would take steps to consolidate public finances in the next two years.

“Recent shifts in Saudi Arabia’s political power structures and societal norms, alongside various regional stresses, could increase the risk of policy mistakes that could result in increased domestic and geopolitical tensions,” S&P said.

“However, we also consider that these structural reforms could empower Saudi citizens and make Saudi Arabia more attractive to investors over the medium term, as the authorities intend.”

Crown Prince Mohammed bin Salman last year unveiled his Vision 2030 programme of economic and social reforms for a post-oil era and has recently announced a host of multi-billion-dollar mega projects, including a futuristic megacity with robots and driverless cars.

Published in Dawn, November 21st, 2017