Arab News, Tuesday, Dec 21, 2021 | Jumada Al-Uola 16, 1443
Fitch changes Oman’s outlook to stable from negative on fiscal reforms, higher oil prices
Oman:Ratings
agency Fitch on Monday revised the financial outlook for Oman to stable from
negative as higher oil prices and fiscal reforms improve the balance sheet of
the Gulf state.
“The revision of the outlook reflects actual
improvements in, and the expected evolution of, key fiscal metrics including
government debt/GDP and the budget deficit,” Fitch said in a statement.
This was driven by “higher oil prices and fiscal
reforms, and a lessening of external financing pressures relative to recent
years even as external funding needs remain high,” it added.
It added that the budget deficit is projected to
be narrowed to 3.4 percent of the gross domestic product in 2021, down from 16.1
percent of GDP in the fiscal year 2021, with the hydrocarbon sector being the
key revenue contributor.