Oman today_ Standard & Poor’s (S&P) has recently reaffirmed Oman’s long-term credit rating at “BBB-” with a stable outlook, based on the government’s ongoing efforts to reduce public debt and improve the country’s fiscal performance.
In September, the agency upgraded Oman’s credit rating from “BB+” to “BBB-.” In its latest report, S&P stated that if the government continues to manage its finances, particularly by increasing non-oil revenues and improving spending efficiency, Oman’s credit rating may be upgraded in the next two years.
The agency forecasts that Oman’s real GDP growth will average 2% from 2025 to 2028, and the country’s public debt will reduce to an average of 1.5% of GDP. These predictions are based on increased non-oil GDP and government measures to support the development of projects and businesses for economic diversification.
The report also noted that Oman is expected to achieve a current account surplus averaging around 1.3% of GDP during 2025-2028, despite a decline in oil production due to Oman’s commitment to OPEC+ agreements and a drop in oil prices to around $70 per barrel.
Inflation in Oman is expected to remain moderate, with an average annual inflation rate of around 1.5% from 2025 to 2028. The agency also praised Oman’s success in reducing public debt from 68% of GDP in 2020 to 36% in 2024.
S&P also highlighted Oman’s efforts to develop the hydrogen sector and the country’s long-term plans to achieve carbon neutrality by 2050, aiming to become one of the global leaders in hydrogen exports by 2030.
S&P forecasts a 2% economic growth for Oman in the coming years
