Muscat: S&P has raised its forecast for Oman’s real GDP growth in 2026 to around 3.5 percent, significantly higher than its previous projection of 1.6 percent, reflecting an improvement in the Sultanate’s economic outlook.

On the public finance front, the agency expects Oman to record a fiscal surplus of around 4.8 percent of GDP in 2026, followed by a surplus of approximately 2.2 percent in 2027.

The report also highlighted the continued improvement in Oman’s public debt position, forecasting government debt to decline to around 30.2 percent of GDP by the end of 2026. It added that the government is expected to maintain a positive net asset position over the medium term.

S&P also projected Oman’s current account to post a surplus of around 3.5 percent of GDP in 2026, before moderating to approximately 1.8 percent by 2029. The agency noted that the Sultanate’s foreign exchange reserves stood at around US$19.5 billion at the end of June 2026.

The report pointed to continued growth across several non-oil sectors, including trade, logistics, information technology and financial services. Non-oil economic activity grew by around 1.3 percent year-on-year during the first half of 2026.

Oman’s growing role as a regional trade and logistics hub was also reflected in higher shipping activity, with volumes at Salalah Port rising by around 15 percent and those at Sohar Port increasing by approximately 52 percent during the same period.

S&P commended Oman’s continued efforts to strengthen its fiscal and economic position, while enhancing governance and transparency in public finance management.

The agency also noted progress in achieving the objectives of the Tenth Five-Year Plan, while highlighting the continued focus under the Eleventh Five-Year Plan 2026–2030 on strengthening capital markets and improving regulation of the financial sector.