Oman Reports Significant Reduction in Public Debt in Q1 2024
The Ministry of Finance in Oman announced a notable decrease in the country’s outstanding public debt in the first quarter of 2024. The total public debt decreased to RO15.1bn from RO15.3bn compared to the end of 2023, showcasing the government’s efforts in managing financial obligations.
By implementing various strategies like buying back sovereign bonds, replacing high-cost loans with low-cost ones, and issuing sukuk, Oman has successfully reduced its debt-to-GDP ratio from its peak of 67.9% in 2020 to 36.5% by the end of 2023. The ministry aims to further lower this ratio to 35% by the end of 2024.
Credit rating agencies have commended Oman’s steps in handling financial responsibilities and lowering public debt. The government remains dedicated to improving fiscal performance, enhancing financial stability, and promoting economic growth in alignment with Oman Vision 2040.
With a safe debt limit estimated at 30% of GDP, Oman is on track to meet its debt obligations while fostering economic development. The Ministry of Finance’s commitment to reducing public debt underscores its commitment to ensuring a stable and prosperous future for Oman.