SICO shares insights into Oman’s current economic climate

SICO shares insights into Oman’s current economic climate

Muscat: SICO shared insights into Oman’s current economic climate in a report analysing progress in achieving targets outlined in Oman’s 10th five-year fiscal and economic plan covering 2021-2025, including debt management, fiscal reforms, and attracting FDI.

The report is based on insights gained from an exclusive discussion between Sumaya Al Jazeeri, Assistant Vice President of SICO’s Investment Research and Dr Said bin Mohammed Al Saqri, Minister of Economy in Oman, in addition to insights from government representatives from the Ministry of Finance and Oman Vision 2040 team during the MSX Roadshow Conference attended on September 5-6.

The year 2022 for Oman is a year of re-arranging the books and can be best described as a year of transitioning towards stronger growth in the medium term (2023-2025). The recovery witnessed in the Omani economy, lowering debt to GDP, and focusing on Capex and investment spending are all promising and commendable, yet Oman continues to face challenges from upcoming debt maturities of nearly $12-13 billion by 2025, inflationary pressures resulting in higher subsidy bills (namely food and oil products subsidies), slower return of expats, and modest lending growth to the private sector.

Oman’s key focus has been debt management, which saw debt to GDP drop