Muscat, Oman – In its latest Global Focus report for Q2 2024, Standard Chartered projects continued improvement in Oman’s credit rating, citing a series of consecutive upgrades in recent years. Currently rated BB+, up from B+ in 2021, the Sultanate is poised to regain its investment-grade rating as a result of a continued reduction in its debt-to-GDP ratio, enhanced fiscal performance, and a commitment to medium-term reforms.

Standard Chartered anticipates a further decline in public debt to 34% of GDP by the end of 2024, supported by sustained twin surpluses. External debt repayment is expected to amount to 5% of GDP in 2024, potentially covered by fiscal surplus proceeds or refinancing options.

Inflation is forecasted to decelerate further from 1.0% in 2023, with 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.

The commitment to reforms underscores Oman’s medium-term outlook, with structural changes aimed at improving the business environment, attracting foreign direct investment, and executing IPOs. Standard Chartered projects a policy rate of 5.5% by the end of 2024, consistent with its latest Fed forecasts.

Hussain Al-Yafai, CEO of Standard Chartered Oman, said: "Oman's steadfast reforms pave the way for an imminent return to investment-grade rating, fueled by a robust economic trajectory and strong non-oil growth.”

For further information please contact:
Noora Abul
Corporate Affairs, Brand & Marketing
T: +973 17 150526

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