Strong economic reforms and improved public finances lead to Oman's return to investment grade status. Discover the key factors contributing to this significant achievement
 |
| Oman's economy continues to strengthen as S&P upgrades its credit rating. The government's reforms and economic policies have contributed to this success. Image shows Finance Ministry of Oman. Image Courtesy: Muhja Khalfan Al Daairi |
Muscat, Oman – October 2, 2024:
Standard & Poor's (S&P) has upgraded Oman's credit rating to 'BBB-' from 'BB+', marking a significant milestone for the country's economy. This upgrade, accompanied by a stable outlook, signifies Oman's return to investment grade status after a period of financial challenges.
The credit rating upgrade is a direct result of Oman's ongoing efforts to improve its public finances through a series of economic and financial reforms. The government's successful implementation of these measures has restored a balanced budget and reduced public debt, contributing to a stronger fiscal position.
S&P highlighted Oman's commitment to reducing public debt, which is expected to reach 29% of GDP by 2027. The government's focus on improving the governance of state-owned enterprises and reducing debt levels has also played a crucial role in the positive rating outlook.
The upgrade is also underpinned by Oman's robust economic performance. The country's real GDP is projected to grow by 2% annually, driven by rising oil production and a growing non-oil sector. The current account is expected to remain in surplus, averaging 1.2% of GDP during 2024-2027.
Inflation is projected to remain low, averaging 1.4% per year, while credit to the private sector is expected to continue expanding. The government's efforts to manage state-owned enterprises have also improved their financial performance and reduced debt levels.
The upgraded credit rating is expected to boost investor confidence in Oman's economy and attract increased foreign investment. It also reflects the government's commitment to fiscal sustainability and economic diversification.
His Excellency Sultan bin Salim Al Habsi, Minister of Finance of Oman, expressed satisfaction with the rating upgrade, emphasizing the government's dedication to financial balance and economic prosperity. He highlighted the positive impact of financial reforms and the government's commitment to strengthening public finance indicators.