DUBAI: The semi-annual review from S&P affirmed the A-/Stable/A-2 sovereign rating of the kingdom, attributing it to a positive post-pandemic performance, as well as an improvement in the oil sector dynamics, Arab News reported.

Saudi Arabia’s economy will benefit from higher oil prices and its successful Covid-19 vaccine rollout, ratings agency S&P Global said, as it affirmed the kingdom’s stable outlook in its latest report.

Growth is heavily observed in non-oil sectors, particularly in real estate where the government aims at driving the national home ownership to 70 per cent by 2030.

Plastic and petrochemical exports also supported the kingdom’s non-oil manufacturing, and consumer spending rose 3 per cent in the first-half of the year.

The easing of tourism restrictions also supported other non-oil industries, including hotels and hospitality.

There is also evidence of progress in the oil sector, which was heavily hit by the pandemic and the production cuts that came with it. Saudi Arabia’s GDP contracted 4.1 per cent last year, the biggest since 1987.

But the S&P report said oil is getting back on track, particularly given the Opec+ decision to restore and increase the overall production by 400,000 barrels/day, 100,000 from Saudi Arabia.

These indicators could drive economic growth from 2021 to 2024, the report said, especially given government efforts at fiscal control.