Muscat, Oman – Standard Chartered has published its latest Global Focus report for Q3 2024. The report finds that Oman has emerged as the only country Gulf Cooperation Council (GCC) economy that has seen a steep decline in its fiscal breakeven oil price to approximately USD 65 per barrel in 2024, compared to USD 80 in 2021, which was partly responsible for the Sultanate’s consecutive rating upgrades to BB+ currently from B+ in 2021.

Standard Chartered projects that a continued reduction in the debt-to-GDP ratio, improved fiscal performance and a commitment to medium-term reforms could enable Oman to regain its investment-grade rating in the near future.

Standard Chartered anticipates a further decline in public debt to 34% of GDP by the end of 2024, supported by sustained twin surpluses. An eventual shift to refinancing could create space to support the domestic economy while boosting Central Bank of Oman FX reserves.

Economic activity is projected to grow due to investment initiatives driven by the Future Fund Oman, with Oman more insulated than GCC peers from OPEC+ oil production cuts given its natural gas output expansion. The non-oil sector (c.70% of real GDP) is set to grow, picking up to 3.0% in 2024 from 2.4% in 2023, driven by sectors such as tourism, manufacturing and trade.

Hussain Al-Yafai, CEO of Standard Chartered Oman, said: “Oman's economic resilience is reflected in the decline of its fiscal breakeven oil price, driving rating upgrades and positioning it for investment-grade status. With public debt set to fall and non-oil growth accelerating, the Sultanate's diversification efforts and Future Fund initiatives are bearing fruit.”

-Ends-

For further information please contact:
Noora Abul
Corporate Affairs, Brand & Marketing

About Standard Chartered

We are a leading international banking group, with a presence in 52 of the world’s most dynamic markets and serving clients in a further 64. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.

Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges.

For more stories and expert opinions please visit Insights at sc.com. Follow Standard Chartered on Twitter, LinkedIn, Instagram and Facebook.