Investor Presentaiton
Oman's Economic Overview
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Economic Diversification Strategy With Fiscal Prudence
OVERVIEW
The Sultanate of Oman is the second largest country by geographical
area among the states of the GCC region, after Saudi Arabia. It is spread
over 309,500 km2, and has a 2,092 km coastline. It is strategically placed
at the mouth of the Arabian Gulf
Population of Oman is approximately 4.9 million (Dec 2022), with Omani
nationals comprising 2.9 million and expatriates comprising 2.0 million
of the overall figure. Population has increased by 9% YoY
Oman's nominal economy expanded by 30% percent YoY in 2022 and
Real GDP increased by 4.3% over the same period.
SULTANATE OF OMAN ECONOMIC SNAPSHOT
Geography
Population
Credit Rating
309,500 km², Oman is the second
largest country in the GCC region
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4.9 million (Dec 2022)
Moody's: Ba2 (Positive); S&P: BB
(Positive); and Fitch: BB- (Positive)
البنك الوطني العماني
NBO 50
Positive Rating outlook by All Rating Agencies
Since 1973
Moody's: The positive outlook captures the prospect that the
improvements in the government's debt metrics will be sustained
over the next few years, despite lower oil prices, through
maintenance of spending discipline and further
implementation of fiscal and structural reforms.
S&P: The positive outlook reflects our view that the government's
fiscal and economic reform program could strengthen Oman's
fiscal position beyond our current assumptions, adding a greater
degree of resilience against the economy's structural
susceptibility to adverse oil price shocks
Fitch: The Positive Outlook reflects lower government debt/GDP,
with high oil prices and spending restraint reducing external
liquidity risk. Fiscal reform should be sufficient to limit a
deterioration of Oman's budget, debt/GDP ratio and external
position under our assumption of lower oil prices this year and
next.
Nominal GDP
USD 114.5 billion (2022, NCSI)
Public Government debt as a percentage of GDP has fallen from 70% in
2020 to 43% as at end 2022 as per State General Budget. It is expected
to fall further in 2023
GDP per Capita
US$ 23,215 (NCSI)
Government's budget for 2023 was based on oil price at USD 55 per
barrel
Fiscal surplus
Surplus c. 2.68% of GDP (2022, NCSI/
CBO)
CHALLENGING MACROECONOMIC CONDITIONS WITH A WELL DEFINED ECONOMIC
DIVERSIFICATION PLAN
MODERATE DEBT TO GDP LEVELS AS COMPARED TO BB* RATE PEERS
Health and Education
Financial Intermediation
Building and Construction
Headwinds to GDP Growth
4.30%
.. with Non-hydrocarbon sectors having the
commendable growth
.. leading to a more diversified economy
GDP composition
3.80%
Real CAGR of selected sectors, 2014-2021
1.90%
Utilities
2.18%
2.60%
51%
-0.20%
2.95%
-1.40%
114,500
Hotels and Restaurants
0.90%
11.87%
-0.80%
3.40%
85,755
79,191 76,040
64,564
6%
7%
9%
27%
Gross Government debt to GDP (2022 estimates)
82.2%
73.1%
-4.04%
38%
8%
8%
50.4%
40.0%
55.2%
39.1%
39.2%
8.12%
4.89%
40%
Mining and Quarrying
8.94%
2018
2019
2020
2021
2022(Proj)
Total non-Petroleum Activities
4.41%
Nominal GDP (USD m)
Inflation Rate (%)
Real GDP Growth (%)
■Total Petroleum Activities
Wholesale & Retail Trade
Other Activities
■Construction
Public Administraion & Defence
Oman
(Ba2)
Armenia (Ba3) South Africa
(Ba2)
Serbia (Ba2)
Vietnam
(Ba2)
Georgia (Ba2) Brazil (Ba2)
Total Petroleum Activities -4.74%
2015
2022View entire presentation