On September 27, 2024, S&P Global Ratings upgraded Oman's sovereign credit ratings to 'BBB-' from 'BB+', marking the country's return to investment grade after a seven-year hiatus. This upgrade is attributed to significant improvements in public finances and the external deleveraging of state-owned enterprises. Notably, Oman's total government-related entity (GRE) debt decreased to US$33.8 billion, which represents 30% of GDP, down from US$35.9 billion, or 41% of GDP, at the end of 2021 [903a4605].
Oman is projected to achieve fiscal surpluses of 1.9% of GDP from 2024 to 2027, a positive indicator of its economic recovery and stability. H E Dr Nasser bin Rashid al Mawali emphasized that this upgrade is a significant milestone for Oman Vision 2040, which aims to diversify the economy and enhance the country's financial resilience [903a4605].
In a broader context, on September 14, 2024, S&P Global Ratings also upgraded Saudi Arabia's economic outlook from stable to positive, affirming its ratings at 'A/A-1'. This upgrade reflects the country's sustained reforms and a strong non-oil growth outlook, with GDP growth projected at 4.7% in 2025 [1049f38e].
Meanwhile, Trinidad and Tobago's ratings were affirmed at 'BBB-/A-3' with a stable outlook, despite ongoing economic challenges. The country is facing sluggish growth, with GDP expected to grow only 0.3% in 2024, largely due to declining hydrocarbon production [e840113c].
These developments highlight the varying economic trajectories within the Gulf Cooperation Council (GCC) region, as countries like Oman and Saudi Arabia make strides in fiscal management and economic diversification, while others like Trinidad and Tobago grapple with stagnation in their energy sectors.