NEW YORK: Standard & Poor’s (S&P) has affirmed the Sultanate of Oman’s investment-grade credit rating at "BBB-" with a stable outlook, supported by ongoing fiscal consolidation measures and improvements in economic performance, as well as its fiscal and external positions.
In its report, the agency raised its forecast for Oman’s real GDP growth for 2026 to approximately 3.5 percent, up from its previous projection of 1.6 percent.
Regarding public finances, the agency projected a fiscal surplus of about 4.8 percent of GDP for 2026 and a surplus of approximately 2.2 percent of GDP for 2027.
The report highlighted the continued improvement of public debt indicators, projecting the debt-to-GDP ratio to reach 30.2 percent by the end of the year, alongside the maintenance of a positive net government asset position over the medium term.
The agency also forecast a current account surplus of approximately 3.5 percent of GDP for 2026, expected to reach about 1.8 percent by 2029, noting that foreign exchange reserves stood at approximately US$19.5 billion at the end of June 2026. Regarding non-oil economic activities, the report highlighted continued growth in the trade, logistics, information technology, and financial services sectors.
Non-oil activity grew by approximately 1.3 percent year-on-year during the first half of 2026.
Additionally, cargo volumes at the ports of Salalah and Sohar rose by 15 percent and 52 percent, respectively, during the same period, reflecting the Sultanate of Oman’s growing role as a regional trade and logistics hub.
Standard & Poor’s commended the Sultanate of Oman’s ongoing efforts to improve its fiscal and economic position and to enhance governance and transparency in public finance management. It noted the progress made toward the targets of the Tenth Five-Year Plan and the continued focus—under the upcoming Eleventh Five-Year Plan (2026–2030)—on strengthening capital markets and regulating the financial sector.
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