Standard & Poor's has affirmed the Sultanate of Oman's credit ratings at "BBB-" with a stable outlook.
The affirmation is a result of ongoing fiscal consolidations and continued government efforts to achieve economic diversification.
The S&P expects an increase in the average oil price to US$60 per barrel, and to US$65 per barrel in the Second Half of 2025.
The GDP growth at constant prices is expected to be 1.7% in 2024 and more than 2% in 2025-2028.
The public debt is expected to decline from 36% in 2024 to 33% in 2028.
Non-oil sector growth will remain steady at about 2.9% per year, supported by investment efforts in manufacturing and tourism.
Net government assets are projected to remain stable at approximately 8% of GDP throughout the period 2025-2028
Inflation is expected to remain low and stable, averaging 1.5% annually over the period 2025-2028.
The fiscal and economic reform momentum is expected to continue over 2025-2028.
A minor fiscal deficit of 0.5% of GDP is anticipated in 2025, followed by a fiscal balance over 2026-2028.
Standard & Poor's pointed out that a future upgrade in Oman's credit ratings remains possible, contingent on the government's sustained efforts to enhance economic sustainability, strengthen public finances, and deepen local capital markets.
The recent CBO Financial Stability report stated that, despite notable progress in diversification efforts, Oman remains heavily reliant on hydrocarbon revenues. Consequently, any prolonged decline in oil prices could adversely affect fiscal and external balances, posing challenges to macroeconomic and financial stability.
The global financial environment remains fragile amid persistent geopolitical tensions in the Middle East and Europe, and elevated trade policy uncertainty.
Global growth projections have been revised slightly downward, reflecting weaker-than-expected performance in advanced economies and a deceleration in global trade momentum.
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