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S&P Revises Oman’s Outlook to ‘Positive’

A coastal city in Oman. (Local sites)
A coastal city in Oman. (Local sites)
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S&P Revises Oman’s Outlook to ‘Positive’

A coastal city in Oman. (Local sites)
A coastal city in Oman. (Local sites)

S&P Global Ratings has revised Oman’s outlook to positive and affirmed its ratings at 'BB', in light of improving fiscal performance.

S&P said in its credit rating report on the Sultanate issued Saturday, that the revised outlook came as a result of the reform measures undertaken by the government in the financial and economic areas that may contribute to strengthening Oman’s fiscal position in a better way than the agency expects, adding a greater degree of resilience of the national economy against oil price shocks.

The steadily improving fiscal performance, underpinned by supportive policies and programs, was reflected in the significant reductions in public debts, the agency said.

This was also evident from the strong growth witnessed by the nominal GDP and the decline in total debt to GDP from more than 60 percent in 2021 to about 40 percent in 2022, it stated.

The agency added that the Sultanate is determined to continue improving its fiscal position, which will enhance its resilience against oil prices volatility.

According to S&P Global, Oman’s public debt is projected to decline to around 16.5 billion Omani riyal, representing 37 percent of the GDP by the end of this year. The diminishing public debt trend, coupled with financial surpluses expected during 2023 and 2024, will further improve Oman’s financial situation, it said.

In its report, the agency said that the government managed to rationalize public spending during 2022, despite the increase in oil revenues, as a result of the government's continued efforts to control public expenditure.

Oman has managed to reduce the public debt to 16.6 billion riyals during the first quarter of 2023.

Oman’s oil exports decreased by 6.9 percent to 49.713 million barrels at the end of February 2023, according to Oman News Agency.

Oil condensate production also increased by 3 percent, compared to the same period in 2022, to around 62.75 million barrels during the same period.

The data indicated that the domestic production of natural gas in Oman increased by 10.3 percent on an annual basis, reaching 8.5 billion cubic meters.

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Saudi Arabia, Mauritania Partnership Aims to Produce 14 Mln Tons of Iron Annually

Mauritania’s Ambassador to Saudi Arabia Moktar Ould Dahi. (Asharq Al-Awsat)
Mauritania’s Ambassador to Saudi Arabia Moktar Ould Dahi. (Asharq Al-Awsat)
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Saudi Arabia, Mauritania Partnership Aims to Produce 14 Mln Tons of Iron Annually

Mauritania’s Ambassador to Saudi Arabia Moktar Ould Dahi. (Asharq Al-Awsat)
Mauritania’s Ambassador to Saudi Arabia Moktar Ould Dahi. (Asharq Al-Awsat)

Mauritania and Saudi Arabia are working to launch a strategic iron mining partnership as part of efforts to expand economic cooperation and boost mutual investments, Mauritania’s ambassador to Riyadh said.

Ambassador Moktar Ould Dahi told Asharq Al-Awsat that the project involves creating “Takamul,” a joint venture between Mauritania’s state-owned mining firm and Saudi Arabia’s Hadeed.

The company, now in the funding stage, would develop an iron ore mine in Mauritania with an annual output target of 12-14 million tons.

The initiative follows a June meeting in Makkah between Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and Mauritanian President Mohamed Ould Cheikh El Ghazouani.

Ould Dahi said trade between the two nations is set to gain momentum, with plans to improve direct transport links to overcome logistical challenges caused by distance and the lack of a direct shipping route.

Saudi investment in Mauritania has risen in recent years, particularly in small and medium-sized enterprises in agriculture and manufacturing. A joint Saudi-Mauritanian business council has been formed to spur private sector partnerships, he added.

Saudi Arabia and Islamic development institutions are major financiers of Mauritanian projects, the envoy said. The Saudi Fund for Development currently has $340 million in active financing, including the King Salman Hospital in Nouakchott and a water supply project for Kiffa.

The Islamic Development Bank has $315 million allocated for projects such as the Atar-Chinguetti road and a specialist maternity and children’s hospital.

Mauritania offers “attractive reserves” in multiple sectors, Ould Dahi said, listing high-grade deposits of iron ore, gold, copper, uranium, phosphates and cobalt; significant confirmed gas reserves with more expected; rich fisheries; strong green hydrogen potential; and hundreds of thousands of hectares of fertile, undeveloped farmland along the Senegal River.

He expects these opportunities to translate into new Saudi-Mauritanian ventures soon, noting growing interest from Saudi public and private investors.

“Mauritania-Saudi relations are at their best,” Ould Dahi said, citing regular high-level consultations, a formal joint cooperation committee and strong Saudi backing for Mauritania in Arab, Islamic and international development forums.

He credited Saudi Arabia for decades of support since Mauritania’s independence, funding key infrastructure from roads, water systems and dams to power, schools and hospitals.