S&P Global Ratings revised Oman’s outlook to positive and affirmed its ratings at ‘BB’, in light of improving fiscal performance.
The agency said in its credit rating report on the Sultunate, that the revised outlook came as a result of the reform measures undertaken by the government in the financial and economic areas that may contribute to strengthening the country’s fiscal position in a better way than the agency expects, adding a greater degree of resilience of the national economy against oil price shocks.
Read more: Omani economy exceeds expectations, Fitch rating improves
The agency pointed out that the government’s efforts to improve fiscal performance and policies supporting economic growth significantly reduced public debt. It also highlighted the strong growth witnessed by the nominal GDP and the decline in total debt to GDP from more than 60 percent in 2021 to about 40 percent in 2022, Oman news agency reported.
The agency added that the Sultanate of Oman is determined to continue improving its fiscal position, which will enhance its resilience against oil prices volatility.
The agency expects that the public debt will decrease to about OMR16.5 billion, or 37 percent of GDP, by the end of 2023. It pointed out that the decline in the public debt and posting financial surplus during the years 2023 and 2024 will lead to an increase in the fiscal space of the Sultanate of Oman.
Oman launched a three-year fiscal stability program in October to add to the momentum of the sultanate’s economic recovery from the pandemic-driven slowdown and support the development of the country’s financial sector.
Launched by Oman’s Sultan Haitham, the National Programme for Financial Sustainability and Development of the Financial Sector kicked off from January 2023.
The program will “make the financial sector a major enabler for the growth of investments and the economy, in a manner that guarantees the continuity of all development programs”.
The sultanate has also signed agreements with its GCC neighbours to boost its economy and create jobs, including a $3 billion railway network with the UAE and a $320 million infrastructure development project with the Saudi Fund for Development.
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