Standard & Poor's revised the outlook for the Sultanate of Oman to "positive" and fixed the credit rating at "BB", in light of the continued improvement in the financial performance of the Sultanate.
The agency indicated that the amendment of its outlook resulted from the initiatives and development measures the Government of the Sultanate of Oman took in the financial and economic aspects. This contributes to strengthening the financial position of the Sultanate of Oman better than the agency expects, which would enhance the position of the local economy so that it can adapt to the fluctuations of the oil markets.
According to the agency, the government's efforts to improve financial performance and policies that support economic growth were reflected in reducing the volume of public debt, the strong growth of the current GDP, and the decline in total public debt as a percentage of GDP from more than 60% in 2021 to about 40% in 2022.
Oman is determined to continue improving its financial and economic position, which will increase its resilience in the face of oil price fluctuations. The agency expects public debt to fall to around RO 5.16 billion, or 37 percent of GDP, by the end of 2023.
The agency revealed that the decline in the public debt rate and the achievement of fiscal surpluses during the years 2023 and 2024 would lead to an increase in the fiscal space of the Sultanate of Oman.
Source (Asharq Al-Awsat Newspaper, Edited)
