S&P Upgrades Oman's Credit Rating to 'BBB-' with Stable Outlook

MUSCAT, Oman, Oct. 2, 2024 /PRNewswire/ -- Standard & Poor's (S&P) has upgraded Oman's credit rating to 'BBB-' from 'BB+' with a stable outlook, driven by improvements in the country's financial performance. This marks Oman's return to investment-grade status after nearly seven years, during which its rating dropped due to the decline in global oil prices and COVID-19.

S&P highlighted that the improvement is a result of continued efforts to enhance public finances through financial and economic reform initiatives and government restructuring. These measures restored the balance between revenues and public spending as outlined in the medium-term financial plan, leading to financial surpluses. Additionally, the government's focus on reducing public debt, improving governance of state-owned enterprises, and lowering debt levels contributed to the positive outlook.

Higher oil prices and the financial measures taken have strengthened Oman's fiscal position, providing flexibility to manage external shocks. S&P expects Oman's budget to generate financial surpluses of 1.9% during 2024-2027, assuming Brent crude prices average $80 per barrel from 2025 to 2027. This would allow the government to continue reducing public debt and building financial reserves. Oman's real GDP is projected to grow by 2% annually, with increased oil production stimulating non-oil sector growth by about 2% per year. The current account is expected to maintain surpluses, averaging 1.2% of GDP during 2024-2027.

S&P emphasized Oman's commitment to reducing public debt, predicting it will reach 29% of GDP by 2027, indicating that liquid assets would remain around 36% of GDP until that year.

Inflation is expected to stay moderate, averaging 1.4% annually during 2024-2027, following a low of 0.9% in 2023. Credit to the private sector expanded by 4.9% in 2023, and lending is projected to grow by 5%-6% annually, supported by favorable credit conditions.

S&P noted that government efforts to manage state-owned enterprises since 2020 have improved governance, operational efficiency, and financial performance, with increased profitability and reduced debt levels. Establishing Oman Energy Development Company (EDO) and Integrated Gas Company (IGC) has also enhanced government financial accounts by reflecting net revenues after oil and gas sector expenses.

Oman's credit rating could improve further over the next two years if the government continues managing public finances as planned, increasing non-oil revenues and improving public expenditure efficiency. These measures would support GDP growth, driven by ongoing momentum in non-oil sectors and continued efforts to promote economic diversification and capital market development.

His Excellency Sultan bin Salim Al Habsi, Oman's Minister of Finance, stated that the upgraded rating reflects the government's commitment to fiscal balance and financial sustainability. This rating enhances confidence in Oman's economy and investment appeal, following positive results from financial reforms, including the Public Debt Law, which strengthened governance and improved the investment environment.

The Minister added that the government remains committed to strengthening public finance indicators and utilizing financial surpluses to promote economic and social prosperity. These achievements result from collaboration between government units, private sector partners, and civil society institutions.

For inquiries:
Muhja Khalfan Al Daairi 
Muhja.daairi@mof.gov.om
+968 99805058

https://www.mof.gov.om/en

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

S&P Upgrades Oman's Credit Rating to 'BBB-' with Stable Outlook

KUALA LUMPUR, Malaysia, Oct. 2, 2024 /PRNewswire/ -- In recent years, China's e-commerce market has witnessed unprecedented growth, with platforms such as Taobao, Tmall, JD.com, RedNote, Douyin, and Pinduoduo each attracting over 100 million monthly active users. However, for international businesses looking to enter this dynamic market, the multitude of platforms and their diverse rules present considerable challenges, necessitating the guidance of expert service providers well-versed in China's e-commerce landscape.

Taking advantage of the annual China-ASEAN Expo in Nanning, numerous international brands have successfully introduced their products to Chinese consumers. Nevertheless, common obstacles such as unfamiliarity with the Chinese market, high tariffs, complex entry requirements, costly logistics, limited distribution channels, and insufficient resources continue to hinder many brands from achieving seamless market integration.

TusCBEC, a leading service provider specializing in digital trade and innovative solutions for international product entry into China, launched the "2024 ASEAN Brand Super Service Week" during the 21st China-ASEAN Expo. This event provided cross-border digital import solutions, offering clear and actionable strategies to over 40 ASEAN brands on how to effectively enter the Chinese market.

Before market entry, TusCBEC collaborates with Tsinghua University's top AI teams to harness advanced technology for precise market analysis and product strategy development. During the operational phase, TusCBEC assists businesses in establishing stores on China's leading e-commerce platforms and deploys a robust suite of AI-powered tools—such as text generation, image creation, video production, video editing, and one-click content distribution—to streamline operations. Additional services include live streaming, translation, reputation management, targeted marketing, and data analysis. On the logistics front, TusCBEC offers end-to-end bonded warehouse services, facilitating multi-platform distribution from a single warehouse and enabling multi-warehouse fulfillment for a single platform. The goal is to create a smart, efficient, convenient, cost-effective, and secure digital channel for international brands to enter China.

Many ASEAN companies have expressed that TusCBEC's solution is a perfect fit for their needs. As one representative from TusCBEC's partner, Thai-Chinese Trade Co., Ltd., noted: "Compared to traditional trade, cross-border e-commerce enjoys more favorable tax policies. Products shipped from bonded warehouses can reach Chinese consumers within just 1-3 days. These policies are incredibly advantageous, offering significant convenience to international businesses."

TusCBEC extends a warm invitation to international brands, aiming to be your trusted partner in navigating the vast opportunities within China's e-commerce market.

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

Cross-border E-commerce, Bonded Logistics, AI Empowerment, and Talent Support: Unlocking New Opportunities for International Brands to Seamlessly Enter the Chinese Market!