OIA contributes to improving Oman’s credit rating

Muscat: Oman Investment Authority (OIA) contributed in the Sultanate of Oman’s successful improvement of its credit rating. This is reflected in Standard and Poor’s latest report issued in March 2025 which affirmed Oman’s BBB- credit rating with a positive outlook.

Oman Investment Authority undertook a key role in achieving this milestone by implementing governance and debt reduction measures on its local companies.

OIA managed to reduce the debt of its subsidiaries from OMR11.4 billion in 2021 to OMR9.2 billion by the end of Q3 2024. One of the most notable examples is OQ Group – which saw a significant improvement in its credit rating, leading to a reduction in its net debt to profits ratio and strengthening its financial and operational sustainability. In addition, Duqm Refinery and Petrochemical Industries Company (OQ8) successfully passed the Lenders Reliability Test (LRT) just recently, which enabled it to unlock over RO 800 million in shareholder guarantees. Moreover, OIA worked on renegotiating loan terms with banks to make them more cost-effective and flexible.

Additionally, to enhance financial governance and the independence of its subsidiaries, OIA took steps to reduce government guarantees on loans for major companies such as OQ, Asyad, and Nama. The total value of these guarantees was lowered from OMR3.2 billion in 2021 to OMR1.8 billion in 2024, and new government guarantees on loans were completely halted. This strategic shift reduced financial risks for the government and encouraged companies to rely on their own investment capabilities to fund new projects.

In February 2022, OIA introduced its Code of Governance for OIA Entities, aiming to regulate debt management and ensure adherence to transparent financial standards. This framework organizes investment activities and loan management, enhances financial and operational performance, aligns corporate plans with sustainable development goals, achieves balance between economic and strategic objectives, and promotes efficient use of resources.

Furthermore, OIA has worked to enhance transparency by requiring companies to disclose financial performance data, which builds trust with credit rating agencies and international financial institutions. Additionally, through strategic partnerships, OIA has attracted foreign investments into key local sectors, strengthening foreign currency reserves.

These initiatives reflect OIA's commitment to achieving the goals of Oman Vision 2040 by reinforcing trust in the Omani economy, contributing to building a strong and sustainable economic future, and positioning the Sultanate of Oman as a trusted investment destination.