S&P affirms Oman’s ratings at 'BBB-' with stable outlook

Muscat: Standard & Poor's (S&P) affirmed Oman's long-term sovereign credit rating at 'BBB-' and short-term rating at 'A-3' with a stable outlook.

“The stable outlook reflects our opinion that Oman’s fiscal and external buffers--which include liquid government assets in excess of 40% of gross domestic product (GDP) and gross foreign currency reserves of close to 20% of GDP which will support the sovereign against adverse geopolitical developments,” the international rating agency said.

S&P further projects Oman’s real GDP growth to accelerate to 3.5% in 2026 from 2.3% in 2025, driven by the impact of Middle East geopolitical uncertainty and sustained by higher oil prices and supply expansion to meet global demand for oil, gas, and byproducts.

The rating agency elaborated that over the past five years, Oman has demonstrated a proactive commitment to addressing structural challenges, including budgetary and external deficits and economic growth trajectories. Central to this progress has been a stronger institutional framework, characterised by enhanced coordination in public finance reforms and governance improvements.

“We expect a supportive oil market and a clear trend toward increased transparency to further bolster this momentum. The government’s commitment to data disclosure--including the regular publication of quarterly GDP, fiscal positions, and international investment position, alongside active engagement in the IMF Article IV process--reflects a maturing institutional landscape,” it said. 

“While regional instability presents external security risks, Oman’s strengthened policy foundations provide a robust framework for navigating potential volatility,” the agency further added.