S&P Global Ratings has raised its forecast for Oman's real GDP growth in 2026 to 3.5% from 1.6%, citing higher oil production, stronger energy prices and increased trade and logistics activity, while affirming the sultanate's BBB- long-term and A-3 short-term sovereign ratings with a stable outlook. Growth is expected to accelerate from 2.3% in 2025.
The agency highlighted Oman's ability to maintain hydrocarbon exports through ports with direct Arabian Sea access, reducing its reliance on the Strait of Hormuz. S&P now expects a fiscal surplus of 4.8% of GDP in 2026, compared with its previous forecast of a 0.7% deficit, followed by a 2.2% surplus in 2027.
Gross government debt is forecast to stabilise just below 30% of GDP by 2029, down from about 32% in 2025 and a post-pandemic peak of 68%. Liquid government assets exceed 40% of GDP, with gross foreign currency reserves close to 20% of GDP.
Gulf Economist Staff Writer