Moody's upgrades Oman to investment grade
This long-anticipated upgrade is a clear recognition of Oman's disciplined fiscal policies, effective debt management and structural reforms that have taken shape over recent years.
According to the Ministry of Finance, the move reflects significant progress made across key financial indicators, including a reduction in public debt, lower debt servicing costs and a narrowing fiscal deficit.
Public debt as a share of GDP dropped to 35.5 per cent in 2024, down from 37.5 per cent the year before. Oman also succeeded in reducing its average oil break-even price to $70 per barrel for 2024–2025, down from $84 during the 2016–2020 period. Public spending has been streamlined, falling from 41 per cent to 29 per cent, while the cost of servicing government debt declined from 9 per cent of total revenue in 2021 to just 7.2 per cent in 2024.
Macroeconomic stability also remained strong. Oman recorded real GDP growth of 1.7 per cent in 2024 (at constant prices), with inflation kept remarkably low at just 0.7 per cent. The country achieved a fiscal surplus equivalent to 2.8 per cent of GDP and a current account surplus of 2.1 per cent, reinforcing its improving external balance.
Ahmed bin Ja'afar al Musallami, Governor of the Central Bank of Oman, described the upgrade as 'a profound testament to our nation's resilience, visionary leadership and unwavering commitment to transformation.'
In a widely shared LinkedIn statement, Al Musallami said the achievement reflects years of determined effort in managing the country's finances wisely and laying the foundation for a more diversified, sustainable economy.
'This milestone reflects disciplined fiscal stewardship, bold economic diversification and a relentless pursuit of a sustainable future,' he said. 'It exemplifies a deep-rooted commitment to financial stability, lower public debt and an economy that can thrive in times of global uncertainty.'
He further noted that Oman is turning challenges into catalysts for long-term growth by accelerating development in non-oil sectors and preparing for future generations with a resilient economic base.
The Ministry of Finance also confirmed that Oman's credit rating trajectory has steadily improved over the past 18 months. Moody's first changed the outlook from 'stable' to 'positive' in August 2024, before issuing the upgrade to 'Baa3' in July 2025. The report from Moody's suggests that further improvement is possible if Oman continues reducing its non-oil fiscal deficit and expands non-oil revenue streams.
This upgrade strongly aligns with the goals of Oman Vision 2040, which prioritises economic diversification, private sector development and sound fiscal governance. It is expected to enhance Oman's attractiveness to global investors, reduce borrowing costs, and open new financing opportunities for infrastructure and development projects.
'Oman is shaping into a resilient and prosperous country,' Al Musallami said, 'driven by clear leadership, national unity and a collective resolve to take our country to greater heights of growth, stability and prosperity.'
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