Oman’s new ruler aims to reduce country’s debt – News of Bahrain- DT News

Oman’s new ruler aims to reduce country’s debt – News of Bahrain- DT News

Oman's new ruler aims to reduce country's debt. Oman's Sultan Haitham bin Tariq al-Said said yesterday the government would work to reduce public debt and restructure public institutions and companies to bolster the economy.. "We will direct our financial resources in the best way that will guarantee reducing debt and increasing revenues," he said in the televised speech.. Rated junk by all three major credit rating agencies, Oman's debt to GDP ratio spiked to nearly 60 per cent last year from around 15pc in 2015, and could reach 70pc by 2022, according to S&P Global Ratings.. The oil producing country has relied heavily on debt to offset a widening deficit caused by lower crude prices.. The late Sultan Qaboos, who ruled Oman for nearly 50 years, held back on austerity measures that could cause unrest.. The country has delayed introducing a 5pc value added tax from 2019 to 2021, and economic diversification has been slow, with oil and gas accounting for over 70pc of government revenues.. Oman observers have said that if Haitham moves to decentralise power it would signal willingness to improve decision making..