Skip to content Skip to Search
Skip navigation

Oman repays $2.9bn in loans in Q1 2023

OPEC Reuters
The oil supply deal comes with 180-day credit terms, allowing Kenya to build up dollars for the purchase over time

Oman repaid OMR1.1 billion ($2.86 billion) in loans in the first quarter, finance ministry figures show, bringing total public debt at the end of March to OMR16.6 billion.

Total debt was OMR17.7 billion at the end of 2022.

Oman, among the weaker economies of the Gulf region, repaid the debt through increased government revenue on the back of higher oil prices, the fiscal performance bulletin said.

Net oil revenue reached OMR1.15 billion at the end of February, up from OMR1.09 billion in the same period a year ago, as oil prices averaged $86 per barrel in the period over $81 per barrel at the end of February 2022.

Increased production combined with higher oil prices led to a budget surplus of OMR372 million at the end of February, up from OMR210 million in the prior year period, while total revenue jumped 12 percent and spending was four percent higher.

Oil and gas revenue represented almost 80 percent of total public revenue, the finance ministry said, making Oman more vulnerable to global swings in oil prices.

Earlier this month, Oman agreed to a voluntary oil output cut of 40,000 barrels per day starting from May until the end of 2023, along with other Opec+ member states, pushing oil prices higher.

Oman launched a medium term fiscal plan in 2020 to reduce public debt, diversify sources of revenue and spur economic growth.

It recorded a fiscal surplus in 2022 of OMR1.146 as higher oil prices boosted revenue.

Ratings agency S&P revised Oman’s outlook to positive, from stable, earlier this month, saying the government was repairing its balance sheet and had reduced gross debt to 40 percent of GDP in 2022, from around 60 percent in 2021.

It expects GDP growth to average 2.5 percent per year between 2023-2026.