Attractive investment environment stimulates growth in Oman
Oman's economy has achieved a surplus of RO 540 million against the budgeted deficit of RO 640 million for the financial year 2024 and the GDP at constant prices rose by 1.7%, to reach RO 38.305 billion in 2024 compared to 2024.
Further, Oman has reduced its public debt by RO 660 million which stood at RO 14.6 billion by the end of 2024 compared to the previous year. Percentage wise the external debt of the Sultanate of Oman is 38% of the GDP which is far below, compared to our GCC neighbors Bahrain which is estimated at 134% of the GDP at the end of 2024 followed by Qatar at 41% and Kuwait at 39% (2023). UAE with 32% and Saudi Arabia with 25 % (2023) are closely behind.
In line with Oman's progress, the credit rating agencies have given a positive outlook for the Sultanate which is quite encouraging and promising. By the end of September 2024, S&P had upgraded Oman's credit rating from 'BB+' to 'BBB-', thus restoring its investment-grade status after years of downgrades due to the financial crisis associated with falling oil prices and the Covid-19 pandemic.
Similarly other credit rating agencies like Fitch and Moody's had also revised Oman's outlook from stable to positive.
It is very important to understand that a credit rating of BBB- is better than BB+. BBB- is considered investment grade, while BB+ is considered non-investment grade or speculative grade. Generally, higher ratings indicate a lower risk of default and a greater capacity to meet the country's financial obligations. Factors affecting credit ratings vary for governments, corporate bonds, including economic conditions, political stability, industry dynamics, and company-specific factors.
Oman is proud of this evolving economic landscape and is at the same time remain mindful of the global challenges, including ongoing geopolitical tensions and trade disruptions which are quite unfortunate.
But we recognize the unique opportunities they present for the Sultanate. As we move forward let's hope to regain the peace and harmony that existed amongst our brothers which had been the hallmark of the flourishing communities in the Middle East. Let us continue to lead with purpose, serve with integrity, and build with the same spirit that has carried the people of Oman throughout the ages.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Muscat Daily
6 hours ago
- Muscat Daily
Hamood al Alawi appointed Oman Air's Deputy CEO
Muscat – Oman Air has announced the appointment of Hamood bin Musbah al Alawi as Deputy Chief Executive Officer. This strategic appointment marks a significant step in the airline's transformation journey and underscores its commitment to building a strong pipeline of Omani leaders in the aviation sector. Alawi joins Oman Air from Oman Airports Management Company, where he served as Acting Chief Executive Officer and played a pivotal role in launching the airport's own transformation programme. Hamood bin Musbah al Alawi H E Saeed bin Hamoud al Mawali, Minister of Transport, Communications and Information Technology and Chairman of Oman Air, said 'The appointment of Hamood al Alawi is a proud moment for the airline and the country's aviation sector. He has demonstrated exceptional leadership in his role at Oman Airports Management Company and we are confident that he will bring the same vision and drive to the national airline. This is a clear outcome of our succession planning strategy and reflects our commitment to cultivating Omani talent and ensuring our leadership reflects the national values, priorities and ambitions.' Con Korfiatis, Chief Executive Officer of Oman Air, added, 'Hamood al Alawi is a strong leader with sound judgement and a deep understanding of the aviation industry. His appointment strengthens our leadership team at a critical time in our growth journey. 'I look forward to working closely with him as we proceed on our transformation agenda and deliver long-term sustainable value for the country.' Holding a Bachelor's degree in Mechanical Engineering from the University of Leeds, UK, Alawi brings over two decades of diverse leadership experience across the government and private sectors, with a strong track record in asset management, corporate transformation and commercial performance. He has held senior roles with Shell International in the Netherlands, led flagship-cost efficiency initiatives for Petroleum Development Oman (PDO), and served as a member of the Executive leadership team at the Ministry of Transport, Communications and Information Technology, where he headed a unit responsible for an RO1bn strategic project.
Observer
9 hours ago
- Observer
Porsche Centre Oman signs a two-year partnership with OAA
MUSCAT: Porsche Centre Oman is investing in the future of motorsport in the Sultanate of Oman by entering into a multi-year partnership with the country's governing body of motorsport, the Oman Automobile Association (OAA), to help grow motorsports at the grass roots level. To be run under the banner of the 'Porsche Centre Oman Karting Championships Series', the commitment will cover the next two seasons of the championship. It will support motorsport in Oman and actively contribute to the development of future motor racing talent and karting in the Sultanate of Oman. 'We are proud to sponsor a project that aligns with our legacy of motorsport excellence,' said Mohamed A R Qassim, Director of Porsche Centre Oman. The championship series is distinct in that it will consist of classes to cater for both race license holders and leisure karting participants. Porsche Centre Oman will provide full branding, racing suits and financial support for licensed drivers and cash prizes to the podium winners. 'Supporting the next generation of drivers is key to Porsche Centre Oman's vision in the region and this partnership reflects our commitment to youth development and motorsport innovation in the Sultanate of Oman,' said Mohamed. The calendar season will also include a 24-hour endurance race along with other races scheduled to be taking place at the Muscat Speedway, starting with the first round of races in September. 'This new championship series for both licensed racers in Rotax Max and leisure karts marks a new era for karting in Oman,' said Sulaiman al Rawahi, Managing Director of the Oman Automobile Association (OAA). 'Partnering with Porsche Centre Oman allows us to elevate the level of competition and offer new opportunities for aspiring drivers across the country.' With the partnership running through until the third quarter of 2027, Porsche Centre Oman will provide financial prizes, and equipment such as branded race suits, while a new Instagram channel will also be launched to promote the upcoming series. Supporting youth sports and building engagement within the community has long been a cornerstone of Porsche Centre Oman's philosophy. The opportunity to support the burgeoning motorsport industry and empower future generations of Omani race drivers starting at grassroots levels made an alignment with the Oman Automobile Association a natural alliance. Porsche has a long history of supporting motor racing in the Middle East with the Porsche Carrera Cup Middle East being the pinnacle, showcasing 15 seasons of competition across the Gulf. Porsche Carrera Cup Middle East provides the ultimate inspiration for future Omani stars who can now begin their climb up the professional motor racing ladder on leisure karts and then the Rotax Max Challenge as part of the the Porsche Centre Oman Karting Championship Series. • Porsche Centre Oman signs a two-year partnership with the Oman Automobile Association (OAA) on June 30, 2025, to sponsor the National Karting Championship Series. • The Porsche Centre Oman Karting Championship Series will play a key role in the development of motorsport in the Sultanate of Oman.
Muscat Daily
10 hours ago
- Muscat Daily
Oman, Egypt reiterate stance on Gaza reconstruction
Cairo, Egypt – Oman and Egypt reaffirmed their united stance on regional developments, particularly the situation in Gaza, during the 16th session of the Omani-Egyptian Joint Committee held in Cairo on Tuesday. H E Sayyid Badr bin Hamad al Busaidi, Foreign Minister, met his Egyptian counterpart Dr Badr Abdel-Aty on the sidelines of the session. Both firmly rejected any effort to displace the Palestinian people and called for stepped-up efforts to support the Arab plan for Gaza's reconstruction. They also reiterated their support for a two-state solution based on the 1967 borders, with East Jerusalem as the capital of a future Palestinian state. Speaking after the meeting, H E Sayyid Badr said, 'This meeting comes at a critical time with growing challenges in the region, most notably the continued Israeli aggression in Gaza. We value Egypt's role in achieving ceasefires and easing humanitarian suffering. We fully support the Arab and Islamic initiative for the reconstruction of Gaza.' He also highlighted the importance of resuming talks between the US and Iran on the nuclear issue, stating that dialogue and trust-building are essential for regional stability. Abdel-Aty underlined the need to restart the ceasefire, secure the release of hostages and prisoners, and ensure uninterrupted humanitarian aid. He added that Egypt is continuing preparations to host the International Conference for Early Recovery and Reconstruction of Gaza once a comprehensive truce is in place. The two ministers also discussed developments in Yemen, Syria, Sudan and the Horn of Africa, emphasising the need to respect national sovereignty and reject foreign interference. The session also focused on strengthening bilateral economic ties. Seven memoranda of understanding and executive programmes were signed in key sectors including labour, mineral resources, investment promotion, media, food safety and religious affairs. Both sides agreed to reactivate the Egyptian-Omani Business Council to support investment partnerships. Abdel-Aty said Egypt looks forward to 'a qualitative leap' in economic ties with Oman, citing opportunities in renewable energy, particularly green hydrogen and ammonia, as well as in agriculture, transport, education and technology. He also noted the importance of linking the Suez Canal Economic Zone with Special Economic Zone at Duqm, including direct maritime routes between Duqm Port and Egyptian ports, to enhance trade. He thanked Oman for supporting Egypt, including backing Dr Khaled el Enany's nomination for the post of Unesco Director-General. At the end of the session, both sides reaffirmed their commitment to continued coordination and cooperation in support of regional stability and development. Separately, Egypt's Minister of Labour, Mohamed Gebran, praised the support given to Egyptian nationals in Oman and said Cairo is keen to enhance cooperation in workforce training and expand collaboration between the two countries' labour ministries. Trump to discuss Gaza, Iran with Netanyahu next week Washington – US President Donald Trump has said he will discuss the situations in Gaza and Iran when he meets Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. Trump said the US is pushing for a truce in Gaza by 'sometime next week' when asked by reporters if a ceasefire could be in place before a visit by Netanyahu to the White House, set for July 7. 'We hope it's going to happen, and we're looking for it to happen sometime next week,' Trump responded as he departed Washington for Florida on Tuesday. He has previously urged Israel to 'make the deal in Gaza,' but on the ground, Israel has continued to pursue its offensive.
