Oman’s economic and investment landscape continues to strengthen under Vision 2040, as S&P Global Ratings has upgraded the nation’s long-term foreign and local currency sovereign credit ratings to ‘BBB-’ from ‘BB+’. This marks the second upgrade in 2024, with a stable outlook, highlighting the government’s successful fiscal and economic reforms.
S&P praised the Omani government’s efforts to reduce public debt and enhance fiscal stability, citing key initiatives such as the introduction of VAT, subsidy reforms, and a comprehensive fiscal stability program launched in 2022. The rating agency acknowledged the ongoing diversification of Oman’s economy but noted the country’s vulnerability to oil price fluctuations.
Ibtisam al Farooji, Under-Secretary for Investment Promotion at the Ministry of Commerce, Industry, and Investment Promotion, hailed the upgrade as a “strong endorsement” of Oman’s evolving investment environment. She emphasized the nation’s regional connectivity, growing competitiveness, and its position as a prime investment destination within the Gulf Cooperation Council (GCC).
Oman’s attractiveness as an investment hub is further underscored by the International Monetary Fund’s prediction of the highest economic growth rate in the Arab world for 2024. Additionally, the FDI Standouts Watchlist ranked Oman fourth for foreign direct investment in 2023.
In early 2024, Oman saw significant increases in foreign investment across sectors like manufacturing (up 37.3%), construction (12.3%), and transport (5.1%). Key international investors from the US, UK, Kuwait, and the Netherlands showed notable interest, reflecting growing confidence in Oman’s economic future.
