'Oman hopes to achieve fiscal balance by 2023'

New York: Fitch Ratings has affirmed the Sultanate’s BB+ rating with a stable outlook.
This rating came as a result of the Sultanate’s strong structural features, as well as its continued economic diversification.
According to Fitch Ratings, the Sultanate has better indicators than those in the same rating in terms of sovereign external assets, which enable the Sultanate to flexibly fund government finances, despite the rise in fiscal deficit and external account.
A Fitch Ratings report added “Through the implementation of a number of additional policies and measures, the Sultanate hopes to achieve fiscal balance by 2023, and this is evidenced by the Sultanate’s continued control of spending and the increase in public revenues through fiscal measures that may result in reducing the deficit from GDP to 7 per cent by 2021, despite moderation in the assumption of oil prices at about $ 60.
The report pointed out that the Sultanate has the potential to achieve high growth rates and increase government revenues, through the implementation of new hydrocarbon projects such as Khazan Reservoir Field and Mabrouk Gas Production Field.
It is expected to establish a new LNG plant in Duqm as well as gas storage facilities in Sohar.
Preliminary forecasts showed that GDP would continue to grow positively in 2019, to reach 1.8 per cent, despite the Sultanate’s commitment to the Organisation of Petroleum Exporting Countries (OPEC) decision to constrain its average oil production. The Sultanate achieved growth of 3.4 per cent in 2018, following a contraction of 0.9 per cent in 2017. The reason behind the growth is an increase of 6.1 per cent in oil GDP and an increase of 2.1 per cent in non-oil GDP.