Latest news with #MahmoodalAweini
Observer
15-04-2025
- Business
- Observer
Global financial cooperation boosts Oman's creditworthiness
MUSCAT: Recent developments in Oman's economic landscape are reinforcing international confidence in the country's creditworthiness, with credit rating agencies acknowledging the progress made in fiscal reform, governance, and financial resilience. Speaking to the Observer on the sidelines of the World Bank Group Day held here on April 14, 2025, Mahmood al Aweini, Secretary-General of the Ministry of Finance, highlighted the growing importance of international financial cooperation in shaping Oman's economic reputation. 'Certainly, having access to finance from international organisations is not easy, and hence it enhances the confidence of credit rating agencies in Oman's sustainable funds,' said Al Aweini. 'The reports issued by the IMF and World Bank on Oman's strengths and progress in the financial sector are critical for these agencies. Through this cooperation, we aim to upgrade our standards to align with international benchmarks and be positively recognised in future credit assessments.' Earlier this month, Standard & Poor's Global Ratings (S&P) reaffirmed Oman's long-term sovereign credit rating at 'BBB-' with a Stable Outlook. The agency cited the Sultanate's favourable investment environment, ongoing fiscal reforms, and commitment to financial sustainability as key factors behind the decision. S&P noted the government's prudent fiscal management, efforts to reduce budget deficits, and structural reforms as significant contributors to the rating. The agency also acknowledged progress in reducing public debt and improving governance frameworks within state-owned enterprises, both of which play a crucial role in Oman's broader economic performance. Looking ahead, S&P forecasts real GDP growth of 2 per cent over the period 2025–2028, supported by diversification efforts and continued investment in both oil and non-oil sectors. It also projects a 1.5 per cent surplus in the State's general budget, driven by healthy revenues and disciplined spending. The agency further indicated that Oman's credit rating could improve over the next two years, should the government continue implementing its fiscal and structural reform agenda. Key areas of focus include increasing non-oil revenues, enhancing expenditure efficiency, and maintaining economic momentum in line with Oman Vision 2040. As Oman accelerates its economic transformation, the alignment with international financial institutions and standards is seen as a strategic lever to attract more global investment and reinforce long-term economic stability. The renewed confidence from credit rating agencies signals growing international recognition of the country's resilience and reform-driven outlook.
Observer
14-04-2025
- Business
- Observer
Oman hosts World Bank Group Day, inks green finance deals
MUSCAT: The Sultanate of Oman, under the auspices of Sultan bin Salim al Habsi, Minister of Finance, hosted World Bank Group (WBG) Day in Muscat, bringing together representatives from the World Bank Group, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA), along with officials from both the public and private sectors. The event aimed to deepen collaboration between the WBG and Omani institutions to advance sustainable development and support economic diversification in line with Oman Vision 2040. The Ministry of Finance played a central role in facilitating the event and fostering dialogue around building a conducive investment and development environment. Mahmood al Aweini, Secretary General at the Ministry of Finance, highlighted the importance of the workshop in enhancing IFC's involvement in Oman. Speaking to the Observer, he said the initiative aims to strengthen the private sector, improve access to finance, and align national policies with global standards. Al Aweini noted that three agreements were signed, including financing for a local financial institution and investment in a sustainable industrial project. He also revealed that Oman is on track to secure up to $1 billion in IFC funding, adding that such partnerships play a key role in boosting institutional strength and investor confidence. Khawaja Aftab Ahmed, Regional Director at IFC, described the opening of IFC's office in Muscat as a major milestone that will allow the organisation to better identify opportunities, build stronger partnerships, and contribute more effectively to Oman's development goals. He reiterated IFC's commitment to supporting Oman in becoming a vibrant, dynamic economy with a leadership role in the region. The agreements signed, he said, reflect growing investor confidence and Oman's rising influence in the region's development landscape. The event included two focused workshops. The first addressed strategies to enhance the private sector's contribution to national development, especially in renewable energy, technology, and sustainable industries. The second workshop highlighted IFC's financing tools and advisory services aimed at supporting Oman Vision 2040 and achieving long-term sustainable growth. Three key agreements were signed with the IFC to promote sustainable investment in Oman. The first, between IFC and Future Fund Oman (FFO), seeks to explore joint investments in sectors such as green manufacturing, clean energy, tourism, logistics, agribusiness, and healthcare. The second agreement, with National Finance Company, involves up to $120 million in financing for projects focused on clean transportation, renewable energy, and energy and water efficiency, particularly targeting individuals and SMEs. The third agreement, signed with United Solar Polysilicon (USP), supports the development of a $1.6 billion greenfield polysilicon plant in Suhar, with an annual production capacity of 100,000 tonnes. The project aims to diversify and strengthen global solar energy supply chains, positioning Oman as a key player outside East Asia. In his closing remarks, Al Aweini reaffirmed Oman's commitment to creating a business environment that fosters innovation, competitiveness, and investment, enabling local companies to expand into international markets. He stressed that the partnership with the WBG and IFC is crucial to unlocking future economic growth. Echoing this view, Khawaja Aftab Ahmed expressed enthusiasm about mobilising capital for impactful projects and supporting Oman's progress toward its Vision 2040 goals. The event signalled a significant step in reinforcing the private sector's role in Oman's economic trajectory and strengthening the nation's ties with the World Bank Group in pursuit of a sustainable and diversified future.
Observer
07-04-2025
- Business
- Observer
Oman to host ADFIAP Finance meeting
MUSCAT, APRIL 7 Development Bank will host the 48th Annual Meeting of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) during April 22-24, 2025 at the Mandarin Oriental Hotel in Muscat. Aligned with the innovation, sustainability and human capital development pillars of Oman Vision 2040, the event brings together over 90 member institutions from 40 countries to delve into issues such as sustainable economic growth, enhancing financial inclusion and mobilizing resources for climate action and infrastructure projects. Expressing Development Bank's pride in being selected to host the prestigious financial association's flagship event, Mahmood al Aweini, Chairman, Development Bank commented: 'April's meeting will explore topics very much pertinent to Oman Vision 2040. These range from building entrepreneurial ecosystems and aligning capital with development objectives and advancing green finance and sustainability. A key focus will be on economic gardening - supporting the growth of existing businesses and providing tailored resources for Stage II companies which are typically past the start-up phase and looking to scale – something Development Bank is actively involved in across Oman. Discussions will also cover strategies for enhancing economic resilience, empowering businesses for sustainable growth and fostering collaboration and knowledge sharing.' The ADFIAP gathering is part of a broader global effort by development banks to address the challenges of development finance as they increase their focus on supporting the UN's Sustainable Development Goals (SDGs) with a particular emphasis on advancing climate action and promoting inclusive economic growth. Hussain al Lawati, CEO, Development Bank added: 'As part of our ongoing commitment to sustainable development, we are proud to contribute to global efforts by strengthening partnerships that advance the SDGs. The Asia-Pacific region, with its rapidly growing economies and major infrastructure needs, plays a critical role in this agenda. By fostering collaboration between public and private sector stakeholders, this year's ADFIAP meeting aims to strengthen regional cooperation and mobilize the necessary resources for these ambitious goals. I have no doubt the event will contribute to shaping the future of development finance in the Asia-Pacific region' Development Bank continues to play a leading role in supporting Omani businesses through a wide range of products and services. In 2024, the bank provided RO 235 million in financing, marking an 84 per cent increase from the previous year. SME lending also saw a significant rise of 64.8 per cent, reaching RO 39 million, supporting businesses nationwide. This commitment to sustainable financing aligns with the bank's strategic focus on fostering economic resilience and inclusive growth, themes that will be central to discussions at the upcoming ADFIAP Annual Meeting.
