The economic situation and purchasing power in the country are improving, according to experts and traders involved in import, export, wholesale, and retail operations. The government, on its part, continues to reduce public debt and address unemployment by creating more job opportunities for citizens across various economic sectors.
These efforts are gradually contributing to the recovery of commercial and economic activities in the country.
With Oman’s long-term commitment to paying down its global debt, the country's credit rating is also gradually improving.
Recently, the credit rating agency Standard & Poor’s upgraded the country’s rating from BB+ to BBB- with a stable outlook, citing improvements in financial performance. The investment environment is also improving, and economic sectors are experiencing growth after a decline that lasted for seven years, beginning in 2017.
Credit ratings, or creditworthiness, are evaluated by specialized agencies, institutions, and organizations that assess the ability of countries and institutions to borrow and repay their debts. Consistent debt repayment and fulfillment of financial obligations build confidence among rating agencies in the borrowing and debt management capabilities of governments and companies.
A country's ability to meet loan installments and interest payments demonstrates its solvency or creditworthiness, which is reflected in its credit rating. Oman has been working towards this for several years by reducing public debt and its associated costs, particularly through timely interest payments. These efforts help Oman attract more foreign investment in the near future, especially as the government plans to launch large industrial projects, making it easier to secure financing.
The government is also working to improve other key indicators, such as GDP growth and citizens' per capita income.
It aims to improve the balance of payments, control inflation, and enhance the annual financial budget by generating more revenue through new economic sectors, while also improving the business environment, reducing bureaucracy, and enacting legislation to attract investment.
The recent BBB- rating awarded to Oman is the first of Standard & Poor’s investment-grade ratings, indicating a safe investment environment in the country. This follows a period of challenges due to falling global oil prices and the impact of the Covid-19 pandemic, which negatively affected Oman’s economy and financial conditions.
The report highlights that Oman is seriously committed to improving public finances through development initiatives, financial and economic measures, and government restructuring. These efforts have helped restore the financial balance between revenues and public spending. The government is also strongly committed to reducing public debt, improving governance of state-owned enterprises, and lowering their debt levels.
Oman Observer is now on the WhatsApp channel. Click here
