Several economic experts have affirmed that Oman's credit rating has been consistently improving and experiencing remarkable development, thanks to the government's efforts and measures to control public spending, decrease public debt, increase non-oil revenues, and enhance the overall financial performance indicators of the country.
According to Eng Mohammed bin Abubakr al Ghassani, Chairman of the Development Bank's Board of Directors, Oman's credit rating has witnessed improvement from various international rating agencies. Notably, Standard & Poor's credit rating has risen from BB with a positive outlook in March 2023 to BB+ with a positive outlook in March 2024. This positive development is a direct result of the government's endeavors to streamline government spending, maximize state financial revenues, and continuously reduce public debt, particularly high-cost debt. Additionally, the effectiveness of financial and economic policies within the financial sustainability program has played a significant role in addressing sudden economic challenges and fostering economic growth.
Eng Al Ghassani further emphasized that the progress in credit rating serves as a crucial indicator of investors' and borrowers' confidence in the economy and the banking sector. It enables Oman to benefit from lower borrowing costs in the future, if necessary, and encourages foreign investors to engage in diverse investments and large-scale capital projects. This, in turn, accelerates the economic diversification strategy and aligns with the objectives of Oman Vision 2040. Moreover, it strengthens the administrative and financial governance of the state and the banking sector, ultimately enhancing long-term economic and financial stability.
He also highlighted that this improvement in credit rating by international credit rating agencies will continue as the government persists in refining government spending, reducing public debt, and implementing economic measures that contribute to fostering economic growth.
