Oman plans $2bn borrowing to cover budget deficit

Oman plans to raise OMR850 million ($2.2 billion) this year from bonds and sukuk to help cover the financial arrears in its 2026 fiscal budget. 

The funds will be raised from the local market to go towards the projected budget deficit and public debt, finance minister Sultan Al Habsi said in an interview with Oman Television.

The sukuk and conventional bonds will be listed on the Muscat Stock Exchange (MSX), he said, giving no further details on the timeframe. 

The sultanate’s national debt is estimated to be OMR14.6 billion. 

Al Habsi said that despite the debt, Oman registered 2.5 percent GDP growth in 2025. 

“On the final account, we have GDP of OMR39.2 billion in 2025 compared to the GDP of OMR38.3 billion recorded in 2024,” Al Habsi added. 

Oman GDP growth

Oman’s 2026 budget predicts a deficit of OMR530 million, which is 14.5 percent lower than that of the 2025 budget.

Expenditure in 2026 is estimated at OMR11.977 billion, up 1.5 percent from 2025.  

Analysts say Oman will need to stay on course with its financial commitments in 2026 to rein in debts and deficits.

“It looks good so far early in the year but Oman will need to watch on expenditures and not go overboard with borrowing to balance its budget,” Nasser Al Brashdi, executive director at Majan Investment, told AGBI. 

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