The public debt of the Sultanate of Oman stood at OMR15.1 billion at the end of March 2024, showing a decrease of OMR188 million compared to 2023. The Ministry of Finance repaid over OMR206 million to the private sector by the end of Q1 2024. Despite a decrease in public revenue to OMR2.826 billion, mainly due to lower oil and gas revenues, efforts to reduce public debt have been successful. Net oil revenue was OMR1.688 billion, while net gas revenue was OMR444 million by the end of Q1 2024.
Public spending amounted to OMR2.664 billion by the end of Q1 2024, reflecting a 4% decrease compared to the same period in 2023. Current expenditure of civil ministries was OMR1.978 billion, while development expenditure of ministries and government units was OMR200 million. Total contributions and other expenses amounted to OMR486 million, up by 78% from 2023. This increase is attributed to the social protection system, oil products subsidy, and allocation towards future debt obligations.
In recent years, Oman has implemented measures to reduce its public debt and mitigate risks associated with its debt portfolio. By rationalizing public spending and increasing non-hydrocarbon revenue, the government has successfully lowered its debt. Efforts include liability management through bond buy-backs, replacing high-cost loans with low-cost options, and issuing Sukuk and domestic bonds in the Muscat Stock Exchange at favorable rates. These initiatives have helped improve Oman’s credit rating and economic outlook.
The credit rating agencies have acknowledged and praised Oman’s efforts in managing financial obligations and reducing public debt. These actions have directly contributed to boosting Oman’s credit rating and outlook, showcasing the government’s commitment to fiscal responsibility. By addressing public debt through strategic measures, Oman aims to ensure a sustainable and stable financial future for the country.
Overall, the Sultanate of Oman’s public debt decreased in the first quarter of 2024, reflecting the government’s commitment to reducing fiscal risks and managing financial obligations effectively. With efforts to diversify revenue sources and implement strategic debt management practices, Oman continues to strengthen its financial stability and improve its economic outlook for the future.
