Fitch raises Oman’s outlook to positive in reversal for Gulf state

Global credit ratings agency Fitch has revised its outlook on Oman to “positive” from “stable,” citing an improvement in finances.

Fitch noted the continued reduction in the debt-to-GDP ratio of Oman’s government and state-owned entities, as well as its accumulation of net sovereign foreign assets.

The revision puts the country on track to be rated as “investment grade by all three major rating agencies within a year or less,” according to economist Justin Alexander, a reversal for the sultanate which was downgraded to junk status seven years ago.

Fitch expects domestic consumption, foreign investment, and tourism will drive non-oil growth above 3% in 2025 and 2026.