The Oman Investment Authority (OIA) has played a pivotal role in the Oman Credit Rating Boost. This reflects its strong commitment to fiscal discipline and economic sustainability. In its latest report, Standard and Poor’s affirmed Oman’s credit rating at BBB- with a positive outlook. This result stems directly from OIA’s strategic initiatives.
A core part of this improvement lies in OIA’s effort to reduce the debt of its subsidiaries. Between 2021 and late 2024, the total debt fell from OMR11.4 billion to OMR9.2 billion. This reduction strengthened Oman’s fiscal resilience and contributed to the improvement in the country’s credit rating.
One major success came from OQ Group, a key OIA subsidiary. The group improved its credit rating due to better financial health and operational efficiency. Its net debt-to-profit ratio dropped significantly. This positioned OQ as a model for other companies and helped drive the overall credit rating enhancement.
Another milestone came from Duqm Refinery and Petrochemical Industries Company (OQ8). The company passed the Lenders Reliability Test (LRT). This success unlocked over RO 800 million in shareholder guarantees. It showed financial reliability and reduced dependence on state support—adding to the Oman Credit Rating Boost.
OIA also renegotiated loan terms with both local and international banks. The new terms were more flexible and cost-effective. These efforts improved liquidity and eased financial pressure on state-owned firms. This restructuring played a key role in Oman’s move toward a stronger credit standing.
Beyond debt management, OIA took steps to reduce government guarantees. For companies like OQ, Asyad, and Nama, total guarantees dropped from OMR3.2 billion in 2021 to OMR1.8 billion in 2024. Notably, OIA stopped issuing new guarantees. This reduced fiscal risk and encouraged companies to invest more independently supporting the Oman Credit Rating Boost.
In 2022, OIA launched a Code of Governance. It introduced clear rules for managing debt, improving transparency, and encouraging sustainability. The code also aligned company operations with Oman Vision 2040. It helped promote efficiency and financial responsibility, aiding the long-term credit rating uplift.
Transparency was another major focus. OIA required companies to regularly disclose financial performance. This increased trust with global investors and credit rating agencies. It also helped attract more foreign direct investment into key sectors. These outcomes further supported the Oman Credit Rating Boost.
Overall, OIA’s strategy included debt control, governance reform, and risk reduction. It also emphasized greater transparency. These steps have improved Oman’s global economic image. They align with the national goal of making Oman a reliable investment destination. The continued Oman Credit Rating Boost highlights the success of these efforts.
In conclusion, the Oman Investment Authority has been a clear catalyst for the Oman Credit Rating Boost. Through strong financial planning and sustainable reforms, it has shown a deep commitment to fiscal responsibility and long-term national growth.
