The Sultanate of Oman reduces public debt to 14.5 billion Omani riyals

Oman cuts public debt to OMR 14.5 billion

6 June 2024

Oman has paid OMR 700 million ($1.8 billion) towards its maturing international sukuk bonds, cutting public debt from OMR 15.3 billion at the end of 2023 to RO 14.5 billion now.

This contributed to a decrease in the ratio of public debt to gross domestic product (GDP) from 36.5% at the end of 2023 to 33.9% during the first half of 2024.

The Ministry of Finance said that Oman’s financial obligations were managed through the repayment of external loans and the issue of government development bonds, as part of Oman’s prompt settlement of financial obligations and its continuous review of related financing costs.

The Ministry said that the repayment of foreign debts during 2024 reflected the distribution of risks associated with the public debt portfolio. As a result, the ratio of external debt in the total volume of public debt declined from 74 percent at the end of 2023 to 71 percent during the first half of 2024.

The Ministry added that this is consistent with the Government’s efforts to bring down public debt and support the local debt market through a lower risk rate.

The Ministry said that financial surpluses achieved are redirected to enhance social spending, stimulate economic growth, manage financial obligations, reduce public debt and build reserve buffers to manage financial obligations.

The Government strives to strengthen Oman’s fiscal position, reduce the burden of public debt, minimise public debt risks and enhance creditworthiness by improving credit rating indicators.