Oman’s public debt reached 15.1 billion Omani rials ($39.23 billion) by the end of March, showing a slight decrease from the 15.3 billion rials recorded at the close of 2023. According to the Oman News Agency (ONA), during the first quarter of the year, the Ministry of Finance disbursed over 206 million rials in dues to the private sector through the financial system. Positive developments in the public debt domain are attributed to government measures aimed at rationalizing spending, diversifying revenue sources, and directing additional revenues toward debt repayment. Efforts such as repurchasing sovereign bonds, settling high-cost loans, and issuing local sukuk and bonds for trading on the Muscat Stock Exchange have contributed to an improved credit rating and future outlook for Oman, as reported by ONA.
However, the Ministry of Finance’s financial performance data for the first quarter revealed a 12 percent decrease in the state’s public revenues, primarily due to reductions in net oil and gas revenues. Revenues stood at around 2.8 billion rials by the end of March, down from 3.2 billion rials in the same period of 2023. Net oil revenues saw a marginal 1 percent decrease, totaling 1.6 billion rials compared to 1.7 billion rials in the first quarter of last year, while net gas revenues experienced a significant 38 percent decline, amounting to 444 million rials, down from 720 million rials in the corresponding period of 2023. Public spending until the end of the first quarter of 2024 reflected a decrease of 4 percent compared to the same period of the previous year, with contributions to the social protection system notably increasing.