Oman: Public debt cut down from $39.7bln to $37.6bln

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Muscat – Oman has paid RO700mn (US$1.8bn) towards its maturing international sukuk bonds, cutting down the volume of public debt from RO15.3bn at the end of 2023 to RO14.5bn.

This contributed to a decrease in the ratio of public debt to gross domestic product (GDP) from 36.5% at the end of 2023 to 33.9% in the first half of 2024.

The Ministry of Finance has stated that Oman’s financial obligations were managed through repayment of external loans and issuing government development bonds, as part of the sultanate’s prompt settlement of financial obligations and its continuous review of related financing costs.

The ministry pointed out that repayment of foreign debt in 2024 reflected on the distribution of risks associated with the public debt portfolio.

As a result, external debt in the total volume of public debt decreased from 74% at the end of 2023 to 71% in the first half of 2024, the ministry explained.

It added that this process is consistent with the government’s efforts to bring down public debt and support the local debt market through a lower risk rate.

The ministry affirmed that financial surpluses achieved are redirected to enhance social spending, stimulate economic growth, manage financial obligations, reduce public debt, and build reserve buffers to manage financial obligations.

The government strives to strengthen the sultanate’s fiscal position, reduce burden of public debt, minimise public debt risks and enhance creditworthiness by improving credit rating indicators.