S&P Revises Oman's Outlook to Positive on Fiscal Improvements

Oman, 30 March, 2024 :  S&P upgraded Oman's outlook to positive from stable, citing improvements in its fiscal position. The credit ratings agency affirmed Oman's rating at 'BB+/B'. Oman forecasted a budget deficit of 640 million rials ($1.66 billion) for 2024, shifting from a surplus in 2023 due to lower oil production and prices.

Oman aims to diversify its income sources away from hydrocarbons but remains heavily reliant on oil revenue. Its Vision 2040 plan seeks to reduce the oil sector's contribution to GDP to 16% by 2030 and 8.4% by 2040, down from 39% in 2017.

S&P anticipates Oman's balance sheet to strengthen, with potential faster deleveraging in state-owned enterprises without compromising economic growth. The agency forecasts Oman's real GDP to grow by approximately 2% annually from 2024 to 2027.

In September 2023, S&P upgraded Oman's credit rating to 'BB+' due to improved macroeconomic fundamentals.

Source : www.zawya.com