Oman Retains Investment Grade Credit Rating: What This Means for Investors and Business Growth in Oman
MUSCAT, MARCH 29 — S&P Global Ratings has affirmed Oman’s sovereign credit rating at investment-grade ‘BBB-’ with a stable outlook, highlighting the strength of the Sultanate of Oman’s fiscal and external positions alongside robust government financial buffers.
According to the Ministry of Finance, citing S&P, Oman’s liquid government assets exceed 40 percent of GDP, while foreign reserves are nearly 20 percent of GDP, reinforcing the country’s creditworthiness amid heightened regional uncertainties.
S&P projects Oman’s economy to grow by 1.4 percent in 2026, with an average growth rate of 2.3 percent from 2027 to 2029. The agency also forecasts an average budget surplus of 0.4 percent for 2027–2029, complemented by a current account surplus of 2.3 percent of GDP in 2026, maintaining around 2.0 percent in the subsequent three years.
The debt-to-GDP ratio is expected to improve, declining from 33.6 percent in 2026 to 31 percent by 2029. S&P’s baseline assumptions include average oil prices of $80 per barrel in 2026 and $65 per barrel from 2027 to 2029, with inflation forecasted at a moderate 1.5 percent for 2026 to 2028.
Azza al Habsi, Economist at Ominvest, told Oman Observer that the rating affirmation goes beyond a routine technical decision. She described it as a clear indication that Oman’s economy remains capable of maintaining fiscal balance despite a sensitive regional climate.
Al Habsi noted the timing of the announcement was particularly significant, occurring amidst rising geopolitical tensions. It underscores ongoing confidence in Oman’s fiscal policies and the government’s ability to absorb economic shocks and manage external risks with discipline.
She emphasized that retaining investment-grade status under these conditions sends a strong, reassuring signal to markets, investors, and lenders that Oman presents a credible and stable economic foundation. Looking ahead, she highlighted the importance of transforming this stability into broader, diversified economic growth by boosting the role of non-oil sectors and reducing dependence on energy market fluctuations.
S&P indicated that Oman’s rating could be upgraded within the next two years if regional geopolitical tensions subside and the country continues to implement reforms that strengthen institutions, support economic diversification, and further enhance fiscal and external buffers.
This latest rating affirmation extends Oman’s investment-grade standing first restored in 2025 and is expected to bolster confidence in the Sultanate’s broader fiscal reform initiatives and the Oman Vision 2040 economic diversification program.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s reaffirmed investment-grade credit rating by S&P, with stable growth and fiscal buffers amid regional tensions, signals strong economic resilience and investor confidence. This creates key opportunities for businesses and smart investors to leverage stability while focusing on the government’s push for economic diversification and non-oil sector growth. Entrepreneurs should strategically align with Oman Vision 2040 initiatives to capitalize on emerging sectors and reduce reliance on energy volatility.
