OIA
Contributes to Improving Oman’s Credit Rating

Muscat,
16 Apr (ONA) — Oman Investment Authority (OIA) contributed in the Sultanate
of Oman’s successful improvement of its credit rating. This is reflected in
Standard and Poor’s latest report issued in March 2025 which affirmed Oman’s
BBB- credit rating with a positive outlook.

Oman
Investment Authority undertook a key role in achieving this milestone by
implementing governance and debt reduction measures on its local companies.

OIA
managed to reduce the debt of its subsidiaries from RO 11.4 billion in 2021 to RO
9.2 billion by the end of Q3 2024. One of the most notable examples is OQ Group
– which saw a significant improvement in its credit rating, leading to a
reduction in its net debt to profits ratio and strengthening its financial and
operational sustainability. In addition, Duqm Refinery and Petrochemical
Industries Company (OQ8) successfully passed the Lenders Reliability Test (LRT)
just recently, which enabled it to unlock over RO 800 million in shareholder
guarantees. Moreover, OIA worked on renegotiating loan terms with banks to make
them more cost-effective and flexible.

Additionally,
to enhance financial governance and the independence of its subsidiaries, OIA
took steps to reduce government guarantees on loans for major companies such as
OQ, Asyad, and Nama. The total value of these guarantees was lowered from RO 3.2
billion in 2021 to RO 1.8 billion in 2024, and new government guarantees on
loans were completely halted. This strategic shift reduced financial risks for
the government and encouraged companies to rely on their own investment
capabilities to fund new projects.

In
February 2022, OIA introduced its Code of Governance for OIA Entities, aiming
to regulate debt management and ensure adherence to transparent financial
standards. This framework organizes investment activities and loan management,
enhances financial and operational performance, aligns corporate plans with
sustainable development goals, achieves balance between economic and strategic
objectives, and promotes efficient use of resources.

Furthermore,
OIA has worked to enhance transparency by requiring companies to disclose
financial performance data, which builds trust with credit rating agencies and
international financial institutions. Additionally, through strategic
partnerships, OIA has attracted foreign investments into key local sectors, strengthening
foreign currency reserves.

These
initiatives reflect OIA’s commitment to achieving the goals of Oman Vision 2040
by reinforcing trust in the Omani economy, contributing to building a strong
and sustainable economic future, and positioning the Sultanate of Oman as a
trusted investment destination.

—Ends/AG