The agency indicated in its report that this rating upgrade with stable outlook is a result of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, these advancements are expected to reduce Saudi Arabia's exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency also commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government's ongoing efforts to utilize the available fiscal resources to diversify the economic base through transformative spending, were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position. In its report, the agency noted that this planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of the Gross Domestic Product (GDP).Moody's has expected that the non-oil private sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the kingdom's exposure to oil market developments.The National Debt Management Center (NDMC) announced the completion of receiving investors ' requests for the international issuance for bonds under the Kingdom's Global Medium-Term Note Issuance Programme (GMTN).
It is worth noting that during the current and previous years, the Kingdom has achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.
The total order book reached around USD 37 billion, which equals an oversubscription of 3 times of the total issuance of USD 12 billion (equivalent to SAR 45 billion) via a triple tranche bond offering. The value of the first tranche is at USD 5 billion (equivalent to SAR 18.75 billion) for a 3-year bond maturing in 2028. The second tranche totaled USD 3 billion (equivalent to SAR 11.25 billion) for a 6-year bond maturing in 2031, while the third tranche totaled USD 4 billion (equivalent to SAR 15 billion) for a 10-year bond maturing in 2035.This transaction is part of NDMC's strategy to diversify the investors' base and meet the Kingdom's financing needs from international debt capital markets efficiently and effectively. The bid-to-cover ratio reflects the strong demand of the Kingdom's issuances, confirming the investors' confidence in the strength of the Kingdom's economy and its investment opportunities future.
*Numbers are rounded to the nearest decimal.