New York: Fitch Ratings has affirmed the Sultanate in the BB+ rating with a stable outlook.
This rating came as a result of the Sultanate's strong structural features, as well as its continued economic diversification.
According to Fitch Ratings, the Sultanate has better indicators than those in the same rating in terms of sovereign external assets that enable the Sultanate to flexibly funding government finances, despite the rise in the fiscal deficit and the external account.
Fetch added "Through the implementation of a number of additional policies and measures, the Sultanate hopes to achieve fiscal balance by 2023, and this is evidenced by the Sultanate's continued control of spending and the increase in public revenues through fiscal measures that may result in reducing the deficit from GDP to 7 per cent by 2021, despite moderation in the assumption of oil prices at about $60.
The report pointed out that among the good potential of the Sultanate are the achievement of high growth rates and large government revenues through the implementation of new hydrocarbon projects such as Khazan reservoir field and Mabrouk gas production field.
It is expected to establish a new LNG plant in Duqm and gas storage facilities in Suhar.
Preliminary forecasts showed the continuation of positive GDP growth for 2019 to reach 1.8 per cent, despite the Sultanate's commitment to the decisions of the Organization of Petroleum Exporting Countries (OPEC) which is constraining average oil production.
The Sultanate achieved a growth of 3.4 per cent in 2018 compared to a contraction of 0.9 per cent in 2017. This growth is due to an increase of 6.1 per cent in oil GDP and an increase of 2.1 per cent in non-oil GDP. --ONA
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