S&P Affirms Oman’s BBB- Credit Rating With Stable Outlook

S&P Affirms Oman’s BBB- Credit Rating

Standard & Poor’s has affirmed the Sultanate of Oman’s investment-grade credit rating at BBB- with a stable outlook, citing continued fiscal consolidation, stronger economic performance and improvements in the country’s financial and external positions.

2026 GDP Growth Forecast Raised to 3.5%

S&P has raised its forecast for Oman’s real GDP growth in 2026 to around 3.5%, compared with its previous estimate of 1.6%. The revision reflects improved economic activity and stronger conditions across key parts of the Omani economy.

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Oman Expected to Record Fiscal Surplus

The agency expects Oman to record a fiscal surplus of about 4.8% of GDP in 2026 and around 2.2% of GDP in 2027. It also noted continued improvement in public debt indicators and expects Oman’s government debt-to-GDP ratio to reach about 30.2% by the end of 2026.

Current Account Surplus and Foreign Reserves

S&P forecasts a current account surplus of around 3.5% of GDP in 2026, narrowing to about 1.8% by 2029. Foreign exchange reserves stood at approximately $19.5 billion at the end of June 2026, providing an important external financial buffer.

Non-Oil Economy Shows Continued Growth

Oman’s non-oil economy has also continued to expand. Non-oil activity grew by about 1.3% year-on-year in the first half of 2026, with trade, logistics, information technology and financial services contributing to economic activity.

Salalah and Sohar Ports See Higher Activity

Port activity also increased during the period. Cargo volumes at Salalah Port rose by about 15%, while volumes at Sohar Port increased by about 52% in the first half of 2026. The figures highlight Oman’s growing role in regional trade and logistics.

Focus on Public Finance and Economic Reforms

The agency also recognized Oman’s efforts to improve public finance management, governance and transparency. S&P noted progress under the Tenth Five-Year Plan and Oman’s focus under the Eleventh Five-Year Plan for 2026–2030 on strengthening capital markets and regulating the financial sector.