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Oman Economy Gets Mixed Signals

Oman Economy Gets Mixed SignalsOman Economy Gets Mixed Signals

The Omani economy has been getting quite a few mixed signals from the international business community. On the one hand, the sultanate managed to sell bonds worth $5 billion, a success that even shocked keen followers of the Omani economy. On the other, a mainline rating agency decided to downgrade the sovereign rating reflecting its concerns about the external financial position, Arabian Business reported. In March, international investors gave a vote of confidence by purchasing bonds of $ billion of 5-, 10- and 30-year tranches. The subscribed amount stood at $20 billion, signaling global interest—and confidence—in the Omani economy. Undoubtedly, the need for raising funds in the international market was in place. The authorities prepared the 2017 budget with expenditures and revenues of $30 billion and 22.3 billion, which translates into a sizeable shortfall, or about 10% of the GDP.The financing plan called for seeking 70% from international borrowers, 16% from local sources and the balance via drawing on international reserves.

 

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