The Global credit rating agency Moody’s has raised Saudi Arabia’s credit rating from ‘Aa2’ to ‘A1’ with a positive outlook.

The report affirms the rating based on Moody’s assessment of the government’s significant progress in implementing a broad-based reform agenda since 2016 and the track record of macroeconomic and fiscal policy effectiveness that will support the sustainability of economic diversification.

The agency also expects the continued implementation of large diversification projects in the Kingdom will support non-hydrocarbon real GDP growth as they are designed to be modular and commercialized in phases.

The agency also mentioned that the positive outlook reflects the reforms and investments in various non-oil sectors that will, over time, lead to a material decline in the Kingdom’s economic and fiscal reliance on hydrocarbons.

Moody’s also noted the Kingdom’s large economy, improving institutions and policy effectiveness, robust balance sheet, and large foreign currency buffers.