Oman’s
Credit Rating Upgraded to Investment Grade

New York, 8 Dec 2025 (ONA) — Fitch Ratings has
upgraded the Sultanate of Oman’s credit rating in its report issued today from
“BB+” to the investment grade level of “BBB-” with a stable
outlook. This upgrade results from the continued improvement in the state’s
public finance indicators, external financial position, and Fitch’s growing
confidence in Oman’s ability to continue adhering to prudent fiscal policies
that enable it to deal with oil price volatility, maintain a moderate budget
deficit, and stable public debt levels.

In its report, the Fitch indicated that Oman has
successfully entrenched fiscal discipline, managing to significantly reduce the
volume of public debt to approximately 36 percent of GDP in 2025, compared to
around 68 percent in 2020.

Fitch expects the state’s general budget deficit
to remain at safe levels, close to one percent of GDP during 2026–2027,
assuming an average Brent crude price of $63 per barrel. Meanwhile, the fiscal
break-even oil price is estimated at around $67 per barrel for the same period.

Regarding economic growth, Fitch projected GDP
growth of approximately 4 percent in 2025, compared to about 1.6 percent in
2024, supported by strong non-oil sector growth of around 3.8 percent,
alongside an acceleration in oil sector growth due to the easing of production
constraints by the OPEC+ group.

Domestic spending, foreign direct investment inflows,
and growing tourism activity are likely to continue supporting non-oil growth
to remain above 3.5 percent over the next two years, 2026-2027.

The report highlighted the qualitative shift in
Oman’s external financial position to a positive indicator, as it became a net
creditor in 2024 at 2 percent of GDP. This marks a significant shift compared
to its status as a net debtor in 2021, resulting from government efforts to
repay due debts, reduce public corporate indebtedness, the growth of external assets,
and the improved soundness of the external financial position due to reserve
growth.

Fitch confirmed that Oman’s credit rating could
rise further in the future if the general budget’s ability to withstand oil
price fluctuations is enhanced by broadening non-oil revenue sources, and if
the financial position continues to improve through ongoing public debt
reduction and repayment of dues, in addition to increasing the strength of
external reserves and the growing size of assets in the sovereign wealth fund.

It is noteworthy that Oman’s credit rating has
been upgraded to investment grade by all major credit rating agencies. Fitch’s
report, upgrading the rating to this level, represents another important
achievement reflecting the success of the prudent economic and fiscal policies
followed by Oman in recent years. It opens promising prospects for further
foreign investment and strengthens confidence in the national economy,
supporting the sustainable development and economic diversification journey
witnessed by Oman under “Oman Vision 2040.”

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Ends/AH