S&P changes Oman outlook to positive

S&P said it changed its outlook for Oman to positive from stable and affirmed its BB+ long-term issuer ratings.

“The outlook revision reflects ongoing improvements in Oman's government balance sheet. We estimate the government's budget surplus over 2023 at 2.6% of GDP. Net government debt declined to an estimated 2.4% of GDP compared with 7.7% in 2022,” S&P said in a press release.

Based on its estimate that Brent oil will average $85 per barrel (/bbl) in 2024 before modestly decreasing to $80/bbl through 2027, the agency said it expects Oman to post budget surpluses averaging 1.2% over 2024-2027.

S&P added, “The government is reducing its footprint in the economy, to move from owner to regulator, via asset sales to help develop the non-hydrocarbon private sector and attract foreign direct investment. We view the reorganization of the government-related entity (GRE) sector as increasing government oversight while enabling conditions to be imposed on the individual companies to enhance efficiency and improve their financial positions.”

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