Muscat, Oman,, April 17, 2025 / Prnewswire / – The sultanate of Oman Recent affirmation of credit rating at BBB- with a positive perspective of Standard & Poor’s (March 2025) reflects the effective government’s budgetary consolidation efforts and improving economic management. A key contributor to this achievement is the Oman Investment Authority (OIA), the country’s sovereign heritage fund, which, since the surveillance of public companies under the National Development Fund in 2020, has implemented robust governance reforms and targeted debt reduction strategies. These measures have strengthened the financial positions of portfolio companies, contributing directly to Oman Improved credit profile and global financial resilience.
The OIA has managed to reduce the aggregated debt of its subsidiaries of 29.64 billion USD in 2021 to 23.92 billion USD At the end of Q3 2024. A notable example is the OQ group, Oman Integrated Energy Company, which has obtained an upgrade of credit rating which has led to a marked improvement in its net debt / lucrative ratio, improving both its financial efficiency and its long -term sustainability. In parallel, the OIA has renegotiated the loan conditions with banking partners to guarantee more profitable and flexible financing structures, further strengthening the operational resilience of its portfolio.
OIA has also considerably reduced dependence on government guarantees to improve the financial and governance of its main subsidiaries. Guarantees extended to large companies such as OQ Group, Asyad Group, Oman logistics and nama supplier, Oman The main provider of electricity, water and wastewater services has been reduced to 8.32 billion USD in 2021 to USD 4.68 billion By 2024, without new guarantees issued since. In addition, Duqm Refinery and Petrochemical Industries Company (OQ8) recently succeeded in the lenders reliability test (LRT) allowing it to unlock 2 billion USD in the guarantees of shareholders. This decisive change has reduced the budgetary risk to the government and reported a new era of responsibility, encouraging companies to take advantage of their own financial force and stimulate future growth.
OIA has also strengthened transparency through its portfolio by requiring disclosure of financial performance through its portfolio. Simultaneously, strategic partnerships have attracted foreign investments in priority sectors, contributing to stronger foreign currency reserves.
These collective initiatives demonstrate OIA’s commitment to Oman Vision 2040 by strengthening confidence in the omanal economy and supporting long -term sustainability. They also position the sultanate of Oman As a trusted and competitive investment destination.
Contact:
Al Yaqdhan Ali al shelter
Higher officer – Strategic communication
Tel: +968 24745659
Alyaqdhan.alabri@oia.gov.om
Source Oman Investment Authority
