Oman’s Investment Potential Spotlighted at London Forum: What It Means for Investors and Business Growth
MUSCAT, Oct 24 — Oman has successfully regained its investment-grade credit rating and significantly reduced its public debt while advancing an ambitious pipeline of green-hydrogen projects, Central Bank of Oman Governor Ahmed bin Jaafar al Musalmi announced at the inaugural Oman Investment Forum in the United Kingdom this week. He emphasized that sustained reform and a stable monetary framework have been key drivers of economic growth and increased investor confidence.
Al Musalmi detailed a substantial fiscal turnaround over recent years, with government debt falling sharply from approximately 68% of GDP in 2020 to an estimated 34–36% in 2024. This improvement has been supported by accelerated debt amortization and stronger oil revenues. Reflecting this progress, rating agencies Standard & Poor’s (as of September 2024) and Moody’s (expected July 2025) now assign Oman BBB-/Baa3 investment-grade ratings, both with stable outlooks.
He also highlighted Oman’s low inflation environment and growing non-oil sector. According to IMF and official data, average consumer price inflation is projected between 0.6% and 1% in 2024, while non-hydrocarbon GDP growth is outpacing overall economic expansion despite OPEC+ oil production limits. Oman’s real GDP is forecast to grow by 1.7% in 2024, with multilateral lenders predicting a gradual economic acceleration.
Positioning Oman as a future leader in green energy exports, Al Musalmi noted nine green-hydrogen projects have been awarded, attracting investment commitments exceeding $50 billion across various development rounds. The International Energy Agency ranks Oman among the top 10 anticipated hydrogen exporters by 2030, supported by GH2 Oman’s report of over 50,000 square kilometers of high-yield solar resources suitable for large-scale projects.
On logistics, the governor emphasized the strategic importance of Oman’s Indian Ocean ports — Salalah, Duqm, and SOHAR — as gateways to regional markets. Salalah port handled approximately 3.3 million TEUs in 2024 and has expanded its capacity to 6 million TEUs. Investments in Oman’s special economic zones, free zones, and industrial cities cumulatively reached around RO 21 billion ($54 billion) by the end of 2024.
Capital markets have deepened notably, bolstered by privatizations. The $2.03 billion Initial Public Offering of OQ Exploration & Production in October 2024 was oversubscribed by about 2.7 times, marking the country’s largest listing to date. By mid-2025, the Muscat Securities Market (MSX) had a market capitalization of approximately RO 28–29 billion ($73–75 billion), nearly two-thirds of Oman’s 2024 GDP.
Banking sector indicators remain robust, with a capital adequacy ratio of 17%, non-performing loans at 4.4–4.5%, and strong liquidity buffers, based on data from the Central Bank of Oman and IMF assessments.
“Oman’s story is one of stability with momentum, reform with purpose, and partnerships with vision,” Al Musalmi stated, inviting global investors to engage in the next phase of Oman Vision 2040. He reaffirmed, “Inflation is near 1 percent, and we are building a world-class green-hydrogen ecosystem with nine awarded projects,” highlighting ongoing financial sector reforms and the strength of Oman’s ports and free zones as central pillars of the nation’s economic strategy.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s restoration of investment-grade status, sharp debt reduction, and ambitious green-hydrogen projects signal a robust economic turnaround and a strategic pivot towards sustainable energy exports. For businesses, this translates into enhanced investor confidence and expanding opportunities in green energy and logistics sectors, while smart investors should focus on the burgeoning green-hydrogen market and capitalize on Oman’s deepening capital markets and strategic port infrastructure. The country’s fiscal discipline and stable inflation create a low-risk environment primed for long-term growth aligned with Oman Vision 2040.
