Customary & Poor’s has affirmed the credit standing of the Sultanate of Oman on the funding grade stage of “BBB-“, sustaining a steady outlook as a result of power of the Sultanate of Oman’s monetary and exterior positions, and the continued availability of precautionary reserves supporting creditworthiness within the face of regional geopolitical developments.
The company defined in its credit standing report on the Sultanate of Oman issued at this time that the steady outlook relies on the Sultanate of Oman having liquid authorities property exceeding 40 % of GDP, together with complete international alternate reserves approaching 20 % of GDP, which reinforces the Sultanate of Oman’s capacity to soak up shocks and keep stability in public funds and exterior place, noting that the Sultanate of Oman’s geographical location has enabled it to proceed exporting oil and fuel with out interruption regardless of the geopolitical tensions within the area.
The company indicated in its report that the prolonged repercussions of regional developments contributed to a exceptional enchancment within the Sultanate of Oman’s commerce alternate indicators, which helps the efficiency of public funds and the exterior place, because the company expects actual GDP development to succeed in about 1.4 % in 2026, then get well once more to succeed in a mean of about 2.3 % in the course of the interval (2027-2029).
That is attributed to expectations of continued exercise in non-oil sectors, rising oil costs, and elevated oil manufacturing within the medium time period, with the common value of Brent crude anticipated to succeed in about US$80 per barrel in 2026, earlier than lowering to about US$65 per barrel in the course of the interval (2027-2029).
The company clarified that the federal government is anticipated to realize fiscal steadiness within the state finances for 2026, after revising its earlier estimates (the company’s report issued in September 2025), which had indicated a slight deficit. It additionally projected comparatively steady fiscal surpluses averaging 0.4 % of GDP in the course of the interval 2027-2029, pushed by continued management of public spending, together with development in non-oil revenues and a average enhance in oil and fuel manufacturing.
However, the company projected that authorities public debt would decline to 31 % of GDP in 2029, in comparison with roughly 35 % in 2025. It is usually anticipated that liquid property would stay robust, averaging 40 % of GDP within the coming years, with international reserves remaining throughout the vary of US$19 billion to US$21 billion till 2029.
The company additionally predicted that the present account would proceed to generate surpluses, recording about 2.3 % of GDP in 2026, and a mean of two % in the course of the interval (2027-2029), benefiting from export flows and improved commerce alternate indicators.
It additionally indicated that inflation charges will stay average, averaging round 1.5 % yearly in the course of the interval (2025-2028). The company defined that the Sultanate of Oman’s efforts in managing public funds, together with controlling present and capital expenditures, rationalizing subsidies, persevering with measures to enhance the effectivity of public spending, and enhancing non-oil revenues, have contributed to decreasing the influence of the present state of affairs.
On the financial facet, the company expects the Sultanate of Oman to proceed diversifying its financial system, significantly within the renewable vitality, inexperienced hydrogen and low-carbon ammonia sectors, in mild of the Sultanate of Oman’s targets to succeed in zero carbon neutrality by 2050, which is able to improve its place as a promising regional hub within the clear vitality sector and assist sustainable development within the medium and long run.
The company confirmed that Oman’s credit standing might enhance over the subsequent two years if geopolitical tensions subside, measures to strengthen establishments, assist financial diversification, enhance non-oil revenues, and enhance the effectivity of public spending proceed, and there’s additional enchancment in fiscal buffers and the exterior place.
The Authorities of the Sultanate of Oman affirms its dedication to persevering with to handle public funds and public debt as deliberate, and to proceed implementing the authorised borrowing plan for 2026, whereas fulfilling all its monetary obligations.
