Oman eyes GCC, IMF help amid economic struggles

Oman eyes GCC, IMF help amid economic struggles

MUSCAT - Oman is increasingly looking to its Arab Gulf neighbours for financial recourse as its economic crisis worsens, although some analysts believe Muscat may choose to borrow from the International Monetary Fund (IMF) instead.

The considerations come as speculation mounts that Oman, which has one of the weakest economies in the oil-rich Gulf region, will turn to the international bond market to finance its budget.

Oman's severe economic crisis, exacerbated by the coronavirus pandemic and a sharp drop in oil prices, likely means it will need the help of its neighbours, potentially in the form of an urgent reform package similar to the bailout plan obtained by Bahrain in 2018.

Analysts believe the time is ripe for Oman to bridge its differences with its neighbours under the rule of Sultan Haitham bin Tariq, who, since his first speech upon assuming office has emphasised the importance of the sultanate's Arab Gulf links.

Ehsan Khoman, who heads the Japanese investment bank MUFG's Middle East and North Africa research and strategy department, said Oman will likely issue bonds this year, but may also need aid from its wealthy neighbours if it does not resort to the IMF.

While other Arab countries have taken on debt to fill