S&P confirms Oman’s sovereign rating at BBB- with stable outlook

Standard & Poor's reaffirmed Oman’s long-term sovereign credit rating at BBB- and its short-term rating at A-3, assigning a stable outlook. The agency highlighted the country’s strong fiscal and external buffers, noting liquid government assets that total more than 40% of GDP and foreign-currency reserves close to 20% of GDP, which should help absorb geopolitical shocks. S&P expects real GDP growth to accelerate to 3.5% in 2026 from 2.3% in 2025, supported by a favorable oil market and expanding supply to meet global demand.

The rating reaffirmation follows five years of Omani efforts to address structural challenges, including budgetary and external deficits, through coordinated public-finance reforms and better governance. Continued transparency, such as regular publication of quarterly economic data and active participation in the IMF Article IV review, signals a maturing institutional framework. While regional instability remains a risk, the agency believes Oman’s policy foundations are robust enough to manage potential volatility.