The Sultanate of Oman has successfully paid OMR700 million ($1.8 billion) towards its maturing international sukuk bonds, resulting in a reduction of public debt from OMR15.3 billion by the end of 2023 to OMR 14.5 billion currently. This payment has led to a decrease in the ratio of public debt to GDP from 36.5 percent at the end of 2023 to 33.9 percent in the first half of 2024.
The Ministry of Finance highlighted that Oman's financial obligations were effectively managed through the repayment of external loans and the issuance of government development bonds. This reflects the country's commitment to promptly settling financial obligations and continuously reviewing related financing costs.
Furthermore, the ministry emphasized that the repayment of foreign debts in 2024 has helped distribute risks associated with the public debt portfolio. Consequently, the ratio of external debt in the total public debt volume decreased from 74 percent at the end of 2023 to 71 percent in the first half of 2024.
The ministry reiterated that these actions align with the government's objectives of reducing public debt, supporting the local debt market by lowering risk rates, and utilizing financial surpluses to enhance social spending, stimulate economic growth, manage financial obligations, reduce public debt, and build reserve buffers.
Overall, the government's efforts aim to strengthen Oman's fiscal position, minimize public debt risks, and enhance creditworthiness by improving credit rating indicators.
