MUSCAT – Ratings agency Standard & Poor’s on Saturday affirmed Oman’s sovereign credit rating at investment grade “BBB-” with a stable outlook, citing the government’s fiscal consolidation efforts and resilience in the face of oil price volatility.

S&P said in its report that structural reforms, including the restructuring of state-owned enterprises, diversification of revenue sources, and the launch of the Oman Future Fund, have strengthened the country’s economic position and bolstered foreign investment inflows.

The agency forecast that Oman’s real gross domestic product will expand from 1.7% in 2024 to above 2% between 2025 and 2028, supported by growth in non-oil sectors. It also projected Brent crude to average $60 per barrel in the second half of 2025 and rise to $65 during 2026–2028.

Public debt is expected to fall from 36% of GDP in 2024 to 33% by 2028, while inflation is forecast to remain subdued at an average of 1.5% over 2025–2028. Net government assets are seen steady at about 8% of GDP, with non-oil sector growth averaging 2.9% annually, underpinned by investment in manufacturing and tourism.

S&P also projected a small fiscal deficit of 0.5% of GDP in 2025, returning to balance in 2026–2028, while the current account is likely to record an average deficit of 1.9% due to softer oil prices.