Latest news with #GovernmentofOman
Zawya
6 days ago
- Business
- Zawya
Moody's upgrades Oman to Baa3, changes outlook to stable
Muscat: Moody's Ratings (Moody's) on Thursday upgraded the Government of Oman's long-term issuer and long-term senior unsecured ratings to Baa3 from Ba1 and changed the outlook to stable from positive. Moody's has also upgraded the Government of Oman's senior unsecured medium-term note programme rating to (P)Baa3 from (P)Ba1. The upgrade reflects Moody's expectation that Oman's government debt metrics will remain robust even if oil prices moderate below Moody's medium-term assumption of $65/barrel in the coming years. The recent years' significant reduction in debt burden together with the cumulative impact of spending restraint increase Oman's resilience to potential future declines in oil demand and prices. Stronger debt metrics also afford the government more fiscal space and time to implement structural reforms that could, over time, reduce the sovereign's still-heavy economic and fiscal reliance on the hydrocarbon sector and potentially support a higher rating. The stable outlook balances fiscal risks under alternative oil price scenarios. The upside risks stem primarily from regional geopolitical tensions, that could drive oil prices higher than Moody's medium-term assumptions, without affecting Oman's ability to export. Conversely, the downside risks include the possibility that global carbon transition accelerates more than we currently assume, leading to weaker hydrocarbon revenue streams in the medium term compared to our baseline. Significantly and durably lower hydrocarbon revenues could reverse the past few years' improvements in Oman's fiscal strength if not met with similarly significant new fiscal consolidation measures. Thursday's rating action also applies to Oman Sovereign Sukuk, a special-purpose vehicle domiciled in Oman, whose obligations, in our view, are ultimately the obligation of the Government of Oman. The entity's backed senior unsecured ratings and its backed senior unsecured medium-term note programme rating were upgraded to Baa3 from Ba1 and to (P)Baa3 from (P)Ba1, respectively. The outlook has been changed to stable from positive. Oman's local currency (LC) and foreign currency (FC) country ceilings were raised by one notch to A3 from Baa1 and to Baa1 from Baa2, respectively. The local currency country ceiling at A3, three notches above the sovereign issuer rating, incorporates the economy's heavy reliance on a single revenue source, the government's large economic footprint, and Oman's track record of material external imbalances during the periods of lower oil prices, mitigated by predictable institutions and moderate political risk. The FC country ceiling at Baa1, one notch below the local currency ceiling, reflects relatively modest transfer and convertibility risks, taking into account the sovereign's robust foreign-currency buffers and Oman's track record of improving fiscal policy effectiveness, balanced by the economy's high, albeit declining, external indebtedness. © Muscat Media Group Provided by SyndiGate Media Inc. (
Times of Oman
12-07-2025
- Business
- Times of Oman
Moody's upgrades Oman to Baa3, changes outlook to stable
Muscat: Moody's Ratings (Moody's) on Thursday upgraded the Government of Oman's long-term issuer and long-term senior unsecured ratings to Baa3 from Ba1 and changed the outlook to stable from positive. Moody's has also upgraded the Government of Oman's senior unsecured medium-term note programme rating to (P)Baa3 from (P)Ba1. The upgrade reflects Moody's expectation that Oman's government debt metrics will remain robust even if oil prices moderate below Moody's medium-term assumption of $65/barrel in the coming years. The recent years' significant reduction in debt burden together with the cumulative impact of spending restraint increase Oman's resilience to potential future declines in oil demand and prices. Stronger debt metrics also afford the government more fiscal space and time to implement structural reforms that could, over time, reduce the sovereign's still-heavy economic and fiscal reliance on the hydrocarbon sector and potentially support a higher rating. The stable outlook balances fiscal risks under alternative oil price scenarios. The upside risks stem primarily from regional geopolitical tensions, that could drive oil prices higher than Moody's medium-term assumptions, without affecting Oman's ability to export. Conversely, the downside risks include the possibility that global carbon transition accelerates more than we currently assume, leading to weaker hydrocarbon revenue streams in the medium term compared to our baseline. Significantly and durably lower hydrocarbon revenues could reverse the past few years' improvements in Oman's fiscal strength if not met with similarly significant new fiscal consolidation measures. Thursday's rating action also applies to Oman Sovereign Sukuk, a special-purpose vehicle domiciled in Oman, whose obligations, in our view, are ultimately the obligation of the Government of Oman. The entity's backed senior unsecured ratings and its backed senior unsecured medium-term note programme rating were upgraded to Baa3 from Ba1 and to (P)Baa3 from (P)Ba1, respectively. The outlook has been changed to stable from positive. Oman's local currency (LC) and foreign currency (FC) country ceilings were raised by one notch to A3 from Baa1 and to Baa1 from Baa2, respectively. The local currency country ceiling at A3, three notches above the sovereign issuer rating, incorporates the economy's heavy reliance on a single revenue source, the government's large economic footprint, and Oman's track record of material external imbalances during the periods of lower oil prices, mitigated by predictable institutions and moderate political risk. The FC country ceiling at Baa1, one notch below the local currency ceiling, reflects relatively modest transfer and convertibility risks, taking into account the sovereign's robust foreign-currency buffers and Oman's track record of improving fiscal policy effectiveness, balanced by the economy's high, albeit declining, external indebtedness.
Hans India
09-07-2025
- Business
- Hans India
Jindal Steel Duqm to launch Oman-based green steel plant
New Delhi: Jindal Steel Duqm, a part of Naveen Jindal Group, aims to start operations at its upcoming 5 million tonnes per annum (MTPA) hydrogen-enabled green steel complex at the Special Economic Zone in Duqm (SEZAD) in Oman by 2028, a company executive said. The plant is being developed in two phases at a total investment of approximately USD 3 billion (around Rs25,000 crore), the official said. Designed to be one of the world's most advanced hydrogen-ready steel facilities, it will initially run on natural gas but will be capable of switching to green hydrogen once the supply infrastructure matures. The complex will consist of two Direct Reduced Iron (DRI) modules of 2.5 MTPA each. While the first unit will be operationalized by December 2028, the second unit is scheduled for commissioning by 2030. Both DRI units are engineered to be hydrogen-ready from day one. According to a senior company executive, Jindal Steel Duqm has informed the Government of Oman that hydrogen will be injected into the DRI process as soon as regular supply is ready, and the equivalent amount of natural gas will be phased out. The company expects to start hydrogen injection by 2033, with 10-15 per cent hydrogen usage targeted by 2035. The green hydrogen required for this transition is expected to come from multiple renewable energy and green hydrogen projects being developed in Duqm by the Government of Oman and private investors. These projects are likely to be operational by 2033, ensuring a domestic and sustainable supply source for the steel plant.
Deccan Herald
08-07-2025
- Business
- Deccan Herald
Jindal Steel Duqm to start Oman-based 5 MTPA green steel plant in 2028
New Delhi, Jindal Steel Duqm, a part of Naveen Jindal Group, aims to start operations at its upcoming 5 million tonnes per annum (MTPA) hydrogen-enabled green steel complex at the Special Economic Zone in Duqm (SEZAD) in Oman by 2028, a company executive plant is being developed in two phases at a total investment of approximately USD 3 billion (around Rs 25,000 crore), the official to be one of the world's most advanced hydrogen-ready steel facilities, it will initially run on natural gas but will be capable of switching to green hydrogen once the supply infrastructure complex will consist of two Direct Reduced Iron (DRI) modules of 2.5 MTPA each. While the first unit will be operationalized by December 2028, the second unit is scheduled for commissioning by 2030. Both DRI units are engineered to be hydrogen-ready from day to a senior company executive, Jindal Steel Duqm has informed the Government of Oman that hydrogen will be injected into the DRI process as soon as regular supply is ready, and the equivalent amount of natural gas will be phased out. The company expects to start hydrogen injection by 2033, with 10-15 per cent hydrogen usage targeted by green hydrogen required for this transition is expected to come from multiple renewable energy and green hydrogen projects being developed in Duqm by the Government of Oman and private investors. These projects are likely to be operational by 2033, ensuring a domestic and sustainable supply source for the steel the outset, the plant will produce Hot Briquetted Iron (HBI) and DRI with a low carbon footprint to cater to the growing demand for low-emission raw materials, particularly from steelmakers in Europe. The use of Electric Arc Furnace (EAF) technology in combination with the DRI route will allow for a more flexible and cleaner steel production Naveen Jindal Group had signed a Memorandum of Understanding (MoU) and land allocation agreement with the Government of Oman in 2022.
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Business Standard
08-07-2025
- Business
- Business Standard
Jindal Steel Duqm to start Oman-based 5 MTPA green steel plant in 2028
Jindal Steel Duqm, a part of Naveen Jindal Group, aims to start operations at its upcoming 5 million tonnes per annum (MTPA) hydrogen-enabled green steel complex at the Special Economic Zone in Duqm (SEZAD) in Oman by 2028, a company executive said. The plant is being developed in two phases at a total investment of approximately $3 billion (around Rs 25,000 crore), the official said. Designed to be one of the world's most advanced hydrogen-ready steel facilities, it will initially run on natural gas but will be capable of switching to green hydrogen once the supply infrastructure matures. The complex will consist of two Direct Reduced Iron (DRI) modules of 2.5 MTPA each. While the first unit will be operationalized by December 2028, the second unit is scheduled for commissioning by 2030. Both DRI units are engineered to be hydrogen-ready from day one. According to a senior company executive, Jindal Steel Duqm has informed the Government of Oman that hydrogen will be injected into the DRI process as soon as regular supply is ready, and the equivalent amount of natural gas will be phased out. The company expects to start hydrogen injection by 2033, with 10-15 per cent hydrogen usage targeted by 2035. The green hydrogen required for this transition is expected to come from multiple renewable energy and green hydrogen projects being developed in Duqm by the Government of Oman and private investors. These projects are likely to be operational by 2033, ensuring a domestic and sustainable supply source for the steel plant. At the outset, the plant will produce Hot Briquetted Iron (HBI) and DRI with a low carbon footprint to cater to the growing demand for low-emission raw materials, particularly from steelmakers in Europe. The use of Electric Arc Furnace (EAF) technology in combination with the DRI route will allow for a more flexible and cleaner steel production model. The Naveen Jindal Group had signed a Memorandum of Understanding (MoU) and land allocation agreement with the Government of Oman in 2022. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
