Oman Aims to Regain Investment-Grade Rating in 2024
Muscat, The Gulf Observer: Standard Chartered forecasts that Oman’s continued improvements in fiscal performance, deleveraging and commitment to reform could enable the Sultanate to regain its investment-grade rating as early as 2024, according to its Global Focus 2024 report.
This comes against a backdrop of a marginally slower growth projection for global GDP at 2.9 per cent, a result of the most aggressive cycle of monetary tightening in years, says the report.
The report also states that policymaking in Oman will likely focus on pro-growth structural reforms to improve the business environment, attract FDI and execute IPOs, which should help stimulate investment and consumption while avoiding further disinflationary risk.
Standard Chartered also projects Oman’s public debt falling to 34 per cent of GDP by end-2024 on sustained twin surpluses.
The bank sees growth in the non-oil sector (c.70 per cent of real GDP) picking up to 2.5 per cent in 2024, driven by sectors such as tourism, manufacturing and trade, whilst overall economic growth is expected to be slow with subdued inflation.
Hussain Al-Yafai, CEO of Standard Chartered Oman, said: “We expect the Sultanate of Oman to continue to demonstrate resilience in the face of global uncertainties and project a positive credit rating trajectory in 2024 as a result of its strong fiscal performance and reform efforts.”
