Oman’s Credit Rating Raised to Investment Grade by Fitch

Fitch Upgrades Oman to Investment Grade “BBB-” with Stable Outlook

New York: Fitch Ratings has upgraded the Sultanate of Oman’s credit rating from “BB+” to the investment-grade level of “BBB-” with a stable outlook, according to a report issued today. The upgrade reflects continued improvements in the Sultanate’s public finance indicators and external financial position, as well as the agency’s growing confidence in Oman’s commitment to prudent fiscal policies that support resilience to oil price fluctuations, maintain a moderate budget deficit, and stabilize public debt levels.

Fitch noted that Oman has firmly established the foundations of fiscal discipline, reducing public debt to an estimated 36 percent of GDP in 2025, compared with about 68 percent in 2020.

The agency expects the State’s general budget deficit to remain at safe levels of around 1 percent of GDP during 2026–2027, based on an assumed average Brent crude price of USD 63 per barrel, while the fiscal breakeven oil price is estimated at USD 67 per barrel for the same period.

On economic performance, Fitch projects GDP growth of around 4 percent in 2025—up from 1.6 percent in 2024—supported by robust non-oil sector growth estimated at 3.8 percent, alongside improved oil sector output following the easing of OPEC+ production constraints. Domestic spending, foreign direct investment inflows and expanding tourism activity are expected to sustain non-oil growth above 3.5 percent during 2026–2027.

The report highlighted a qualitative shift in Oman’s external financial position, with the country becoming a net creditor in 2024 at 2 percent of GDP, compared with a net debtor position in 2021. This improvement is attributed to government efforts to repay outstanding debts, reduce liabilities of state-owned enterprises, expand external assets and strengthen financial reserves.

Fitch added that Oman’s credit rating could be upgraded further if the State enhances its ability to absorb oil price volatility through an expanded non-oil revenue base, continued debt reduction, stronger external reserves and growth in sovereign wealth fund assets. All major international rating agencies have now raised Oman’s credit rating to investment grade.

Fitch described the upgrade as a significant achievement that reflects the success of the Sultanate’s prudent fiscal and economic management in recent years. The move is expected to enhance foreign investment prospects, reinforce confidence in the national economy, and support Oman’s ongoing sustainable development and economic diversification efforts under Oman Vision 2040.