Oman’s credit rating upgraded to BBB- by Fitch

MUSCAT, Oman (MNTV) – Oman has regained investment-grade status after Fitch Ratings lifted the Sultanate’s long-term foreign-currency rating from BB+ to BBB-, citing stronger public finances, a healthier external position, and sustained commitment to prudent fiscal policy.

Fitch said Oman has sharply reduced its government debt burden to roughly 36 percent of GDP in 2025, down from nearly 68 percent in 2020, according to data published by the Oman News Agency. 

The outlook remains stable, with the agency projecting a contained budget deficit of around 1 percent of GDP in 2026–2027, based on an assumed average Brent price of $63 per barrel. The fiscal breakeven oil price is estimated at about $67 per barrel.

The upgrade reflects a multi-year fiscal turnaround, supported by debt repayment, disciplined budgeting, and stronger reserves. 

Fitch noted that Oman has transitioned into a net external creditor for the first time in years, reaching an estimated 2 percent of GDP in 2024 after previously holding a net debtor position in 2021.

The rating agency also pointed to robust non-oil activity, rising foreign investment, and reforms aimed at diversifying revenue sources. 

It expects GDP growth of around 4 percent in 2025, up from 1.6 percent in 2024, with non-oil expansion seen above 3.5 percent over 2026–2027. 

ONA added that domestic consumption, continued FDI inflows, and a strengthening tourism sector will anchor medium-term growth momentum.

Fitch said further upgrades could follow if Oman boosts resilience to oil-price volatility by expanding non-oil revenues, maintaining fiscal discipline, and strengthening external buffers and sovereign wealth fund assets.