Fitch Upgrades Omani Energy Giants EDO and OQ to Investment-Grade ‘BBB-’: What This Means for Investors and Business Growth in Oman
CONRAD PRABHU
MUSCAT, DECEMBER 16, 2025
Following the recent upgrade of Oman’s sovereign credit rating to an investment-grade ‘BBB-’, international ratings agency Fitch Ratings has extended similar upgrades to two major state-owned energy entities: Energy Development Oman SAOC (EDO) and OQ SAOC.
On December 15, 2025, Fitch concurrently raised the Long-Term Issuer Default Ratings (IDRs) of both EDO and OQ from ‘BB+’ to ‘BBB-’, while maintaining a Stable Outlook for each company.
Earlier this month, Fitch elevated Oman’s sovereign rating to investment grade, citing strengthened public finances, reduced government debt ratios, and an improved external position as primary factors. The agency pointed to Oman’s sustained fiscal discipline, government debt reduction to approximately 36% of GDP, and prudent macroeconomic management as key drivers that have bolstered investor confidence in the Sultanate’s economic resilience and long-term stability.
EDO and OQ, central to Oman’s economy, play vital roles in revenue generation, value creation, GDP growth, and long-term economic development.
EDO, affiliated with the Ministry of Finance, holds a 60% stake in the Block 6 petroleum concession operated by Petroleum Development Oman (PDO), full ownership of Block 6’s non-associated gas concession, and 100% ownership of Hydrogen Oman (Hydrom), the strategic planner for Oman’s green hydrogen industry.
Fitch’s assessment of EDO highlights its very strong ties to the Omani government, which influence the company’s rating and provide a high Government-Related Entity (GRE) support score of 55 out of 60. EDO benefits from full state ownership, government-appointed directors, regulated gas pricing, and the strategic significance of its Block 6 concessions to Oman’s domestic economy.
As the largest oil and gas producer in Oman through its interest in PDO—the operator of onshore Block 6 concessions covering over 24% of Oman’s land and with more than 50 years of production history—EDO slightly mitigates risks tied to its single-country operations. Fitch expects average production to exceed 800,000 barrels of oil equivalent per day (kboe/d) through 2028.
OQ SAOC is fully state-owned through the Oman Investment Authority (OIA) and tasked with consolidating and strengthening Oman’s oil and gas sector. Fitch underscores OQ’s strategic importance as the country’s primary downstream operator, owner of all domestic refining assets, exclusive operator of natural gas transportation infrastructure, and national leader in renewable energy development.
After significantly reducing leverage to near zero in 2024 through IPO proceeds and debt repayments, Fitch anticipates a gradual increase in gearing as OQ invests in upstream growth, gas networks, decarbonisation efforts, and an expanding clean energy and green hydrogen portfolio.
Wholly owned subsidiary OQ Alternative Energy (OQAE) stands out as the national champion for clean energy and green hydrogen, driving Oman’s alternative energy projects. OQAE has developed a renewable energy pipeline of up to 7 GW across Oman, including wind and solar projects, and is actively advancing five wind and two solar projects with a combined capacity of 1.8 GW.
This upgrade affirms the strengthened financial position and strategic importance of EDO and OQ, reflecting broader confidence in Oman’s economic and energy sector outlook.
Special Analysis by Omanet | Navigate Oman’s Market
The recent Fitch upgrades of Oman’s sovereign rating and key energy firms EDO and OQ to investment grade signal enhanced investor confidence and economic resilience in Oman’s energy sector. For businesses and investors, this underscores opportunities in energy diversification and green hydrogen development, driven by strong government support and ambitious clean energy projects. Smart investors should now consider long-term growth potential in Oman’s evolving energy landscape, particularly in renewable energy infrastructure and decarbonization initiatives, while monitoring geopolitical and market risks inherent to the sector.
