MUSCAT: Recent developments in Oman’s economic landscape are reinforcing international confidence in the country’s creditworthiness, with credit rating agencies acknowledging the progress made in fiscal reform, governance, and financial resilience.
Speaking to the Observer on the sidelines of the World Bank Group Day held here on April 14, 2025, Mahmood al Aweini, Secretary-General of the Ministry of Finance, highlighted the growing importance of international financial cooperation in shaping Oman’s economic reputation.
“Certainly, having access to finance from international organisations is not easy, and hence it enhances the confidence of credit rating agencies in Oman’s sustainable funds,” said Al Aweini.
“The reports issued by the IMF and World Bank on Oman’s strengths and progress in the financial sector are critical for these agencies. Through this cooperation, we aim to upgrade our standards to align with international benchmarks and be positively recognised in future credit assessments.”
Earlier this month, Standard & Poor’s Global Ratings (S&P) reaffirmed Oman’s long-term sovereign credit rating at ‘BBB-’ with a Stable Outlook. The agency cited the Sultanate’s favourable investment environment, ongoing fiscal reforms, and commitment to financial sustainability as key factors behind the decision.
S&P noted the government’s prudent fiscal management, efforts to reduce budget deficits, and structural reforms as significant contributors to the rating. The agency also acknowledged progress in reducing public debt and improving governance frameworks within state-owned enterprises, both of which play a crucial role in Oman’s broader economic performance.
Looking ahead, S&P forecasts real GDP growth of 2 per cent over the period 2025–2028, supported by diversification efforts and continued investment in both oil and non-oil sectors. It also projects a 1.5 per cent surplus in the State’s general budget, driven by healthy revenues and disciplined spending.
The agency further indicated that Oman’s credit rating could improve over the next two years, should the government continue implementing its fiscal and structural reform agenda. Key areas of focus include increasing non-oil revenues, enhancing expenditure efficiency, and maintaining economic momentum in line with Oman Vision 2040.
As Oman accelerates its economic transformation, the alignment with international financial institutions and standards is seen as a strategic lever to attract more global investment and reinforce long-term economic stability. The renewed confidence from credit rating agencies signals growing international recognition of the country’s resilience and reform-driven outlook.
Oman Observer is now on the WhatsApp channel. Click here
