S&P Upgrades Oman’s Credit Rating with 'Stable Outlook'

A gas production field in the Sultanate of Oman. (Reuters)
A gas production field in the Sultanate of Oman. (Reuters)
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S&P Upgrades Oman’s Credit Rating with 'Stable Outlook'

A gas production field in the Sultanate of Oman. (Reuters)
A gas production field in the Sultanate of Oman. (Reuters)

Global credit rating agency Standard & Poor’s (S&P) upgraded Oman’s credit rating to ‘BBB-’ with a stable outlook, hoping the country’s public finances will continue to strengthen.
“The outlook on the long-term ratings is stable,” the agency said.
The stable outlook balances the potential benefits of the government's fiscal and economic reform program against the economy's structural susceptibility to adverse oil price shocks.
S&P also noted that Oman’s fiscal position remains highly dependent on oil price movements, but resilience against shocks has strengthened.
Oil prices settled higher on Friday but fell on the week as investors weighed expectations for higher global supply against fresh stimulus from top crude importer China.
Brent crude futures settled up 38 cents, or 0.53%, at $71.89 per barrel. Front-month US West Texas Intermediate crude futures settled up 51 cents, or 0.75%, at $68.18.
On a weekly basis, Brent settled down around 3%, while WTI fell by around 5%.
In early May, the International Monetary Fund (IMF) said Oman’s near- to medium-term outlook is favorable and risks to the outlook are broadly balanced.
It expressed hope that a decline in oil prices and economic reforms would continue in the medium term.
On Saturday, S&P expressed optimism it could raise Oman’s ratings over the next two years if reforms lead to steady growth in Oman's GDP per capita supported by continued momentum in non-oil growth.
It then expected the government's fiscal and economic reform momentum will continue over 2024-2027 on condition of reducing external debt levels and accumulating liquid assets.
Last week, the Central Bank of Oman (CBO) reduced its repo rate for local banks by 50 basis points, bringing it down to 5.5% in line with other Gulf central banks’ decisions to cut their key interest rates after the Federal Reserve decreased US rates by half a percentage point.
S&P said it anticipates that the CBO will continue following the US Federal Reserve's interest rate policy.
The agency added, “We expect Oman will maintain its currency peg, supported by its accumulated government external assets of about 30% of GDP.”

 



Saudi Sovereign Fund Tops Global Governance, Sustainability Ranking

King Abdullah Financial District in Riyadh, Home to the Public Investment Fund (SPA)
King Abdullah Financial District in Riyadh, Home to the Public Investment Fund (SPA)
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Saudi Sovereign Fund Tops Global Governance, Sustainability Ranking

King Abdullah Financial District in Riyadh, Home to the Public Investment Fund (SPA)
King Abdullah Financial District in Riyadh, Home to the Public Investment Fund (SPA)

Saudi Arabia’s Public Investment Fund (PIF) has been ranked the top sovereign wealth fund globally in the 2025 Governance, Sustainability, and Resilience (GSR) rankings released by international research firm SWF Global.

The achievement marks the third consecutive year that the fund has maintained its leading position in the Gulf and across the Middle East, underscoring its growing influence and adherence to global best practices in governance and sustainability.

The annual GSR report - widely regarded as a benchmark for evaluating sovereign wealth and public pension funds - assesses the performance of the 200 largest funds worldwide, which collectively manage over $29.4 trillion in assets. The rankings focus on governance frameworks, environmental and social responsibility, and resilience to economic and geopolitical shifts.

Strategic Transformation and Transparency

The report highlighted the PIF’s strategic transformation since the launch of Saudi Vision 2030. No longer functioning solely as an investment vehicle, the fund has emerged as a key economic driver shaping the Kingdom’s future and boosting its global competitiveness.

Key factors contributing to the PIF’s top ranking include its commitment to achieving net-zero emissions by 2050, alignment with the United Nations Sustainable Development Goals through its green finance framework, and enhanced transparency in governance and sustainability disclosures.

In November 2023, the fund voluntarily adopted the Global Investment Performance Standards (GIPS) issued by the CFA Institute, signaling its continued adherence to global standards of governance, integrity, and disclosure.

Driving Renewable Energy and Financial Resilience

PIF is also central to Saudi Arabia’s sustainability agenda. It is responsible for developing 70% of the Kingdom’s renewable energy capacity, aiming to raise the share of renewables in the national energy mix to 50% by 2030. This aligns with Saudi Arabia’s broader goal of reaching net-zero emissions by 2060, while the fund itself remains on track to hit its 2050 target.

The fund’s adherence to international best practices has bolstered its credit profile, earning it an “AA3” rating from Moody’s and an “A+” from Fitch. This has supported its diversified financing strategy, including a £650 million bond issuance, $2 billion in sukuk, and a $15 billion flexible credit facility. The PIF has also launched a global commercial paper program to further enhance liquidity and funding options.

Since 2017, the PIF has helped generate over 1.1 million direct and indirect jobs both domestically and internationally, reflecting its broader mission of economic diversification and growth.

About SWF Global

SWF Global is an independent research organization focused on connecting and analyzing sovereign investors. It operates a data platform and publishes monthly reports, in addition to offering advisory services and executive education through its Sovereign Fund Academy, targeting fund managers and policymakers.