Global reports warned on Monday that Saudi Arabia's growing aging population could put pressure on public finances and government debt over the next three decades if government reforms are not made to contain age-related costs.

In its report, titled “Global Population Aging 2016,” Standard & Poor's Ratings Services predicted that Saudi Arabia's population will rise at a rapid pace from 32 million to 46 million between 2015 and 2050 in line with UN figures, during the same period the proportion of elderly people will increase to 15% of the total population from the current 3%.“

Standard & Poor's Ratings Agency (S&P) has projected that Saudi Arabia's population will grow at a rapid pace between 2015 and 2050 in line with UN figures, with the proportion of elderly people rising to 15% of the total population.

The report explained that Saudi Arabia's aging population could be a burden on public debt, ”as a result, age-related government expenditures on pensions and health care will rise to 14% of GDP by 2050 from 6%.“

The report explained that Saudi Arabia's aging population could be a burden on public debt.

Terver Callinan, a credit analyst at the agency, said the aging population could lead to a rapid rise in Saudi Arabia's net debt ratio to 340% of GDP by 2050 if governments do not take further action, and the country's sovereign credit ratings will be downgraded.

In this context, Traver Callinan, a credit analyst at the agency, emphasized that the aging population could lead to a rapid rise in the net debt ratio to 340% of GDP by 2050, if governments do not take further action.

"Due to the growth of the younger segment of the population, the number of participants in the Kingdom's generous pension system has outpaced the growth in the number of beneficiaries," Callinan added in the report. "However, we believe the Saudi government will likely consider demographic reforms to the pension system to ensure its sustainability."

Callinan added in the report.