MUSCAT: In a recent report by Kamco Invest, the Sultanate of Oman emerges as a key player in the revitalisation of the Gulf Cooperation Council (GCC) economy, driving positive growth amidst market turbulence. The report sheds light on the region's real GDP growth, stock markets, fixed income issuances, fiscal balances, and Central Bank rates, offering insight into the resilient trajectory of the GCC.
Oman has demonstrated remarkable growth and resilience amidst market volatility, solidifying its position as a key player in the region. Despite challenges, the country has shown stability and financial strength across various sectors.
In 2022, Oman's market volatility index exhibited a positive change of 17.6%, indicating its ability to withstand uncertain market conditions. In 2023, the index experienced a minor dip of 7.1%, highlighting the country's adaptability and stability. Overall, the GCC stock market registered a positive change of 3.7% in 2023 compared to -6.4% in 2022.
On GCC stock markets value traded, Oman's stock market demonstrated remarkable resilience, with value traded increasing from $2 billion in 2022 to more than $3 billion in 2023, with an increase of 14%. Such positive performance catapulted Oman's market to become top gainers in the GCC overall. Dubai Stock Exchange followed with 7.4% increase while the rest of the stock markets in the region registered negative growth.
Oman's banking sector remained solid. In 2022, the country’s banking assets totaled at $86 billion. As of September 2023, Oman’s banking assets already reached $ 88 billion. This showcases the prudent management of Omani banks and their ability to navigate challenging economic times.
Moreover, central bank rates have played a crucial role in supporting Oman's economic growth. The Central Bank of Oman's (CBO) continued focus on maintaining stability in the financial system is evident in its interest rate policies. The report indicates that the CBO implemented a rate hike in 2023, raising the rate to 6% from the previous 5%. This proactive measure demonstrates the country's commitment to maintaining a stable monetary policy and managing inflationary pressures effectively.
For Oman, the fiscal break-even oil prices projected for 2023 and 2024, at $54.3 and $54.8 per barrel respectively. This indicates a well-planned budgetary framework that considers market volatility.
Overall, Oman's resilience, prudent economic policies, and commitment to diversification make it an attractive investment opportunity. With stable markets, a growing banking sector, and a focus on infrastructure projects, Oman continues to thrive amid market volatility.
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