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. 

 

This comes against the backdrop of a marginally slower growth projection for global GDP at 2.9%, a result of the most aggressive cycle of monetary tightening in years, says the Standard Chartered Global Focus 2024 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.

 

Public debt to fall

Standard Chartered also projects Oman’s public debt falling to 34% of GDP by end-2024 on sustained twin surpluses. 

 

The bank sees growth in the non-oil sector (c.70% of real GDP) picking up to 2.5% 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 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.”--TradeArabia News Service