OMAN CREDIT OUTLOOK STRENGTHENS AS OIA REFORMS DRIVE FINANCIAL RESILIENCE

OIA also significantly reduced reliance on government guarantees to enhance the financial independence and governance of its key subsidiaries. Guarantees extended to major companies such as OQ Group, Asyad Group, Oman's logistics provider,  and Nama, Oman's primary provider of electricity, water and wastewater services, were reduced from USD 8.32 billion in 2021 to USD 4.68 billion by 2024, with no new guarantees issued since. In addition, Duqm Refinery and Petrochemical Industries Company (OQ8) recently passed the Lenders Reliability Test (LRT) enabling it to unlock over USD 2 billion in shareholder guarantees. This decisive shift has lowered fiscal risk for the government and signaled a new era of accountability, encouraging companies to leverage their own financial strength and drive future growth.

OIA also significantly reduced reliance on government guarantees to enhance the financial independence and governance of its key subsidiaries. Guarantees extended to major companies such as OQ Group, Asyad Group, Oman's logistics provider,  and Nama, Oman's primary provider of electricity, water and wastewater services, were reduced from USD 8.32 billion in 2021 to USD 4.68 billion by 2024, with no new guarantees issued since. In addition, Duqm Refinery and Petrochemical Industries Company (OQ8) recently passed the Lenders Reliability Test (LRT) enabling it to unlock over USD 2 billion in shareholder guarantees. This decisive shift has lowered fiscal risk for the government and signaled a new era of accountability, encouraging companies to leverage their own financial strength and drive future growth.

OIA has also further strengthened transparency across its portfolio by mandating financial performance disclosure across its portfolio. Simultaneously, strategic partnerships have attracted foreign investment into priority sectors, contributing to stronger foreign currency reserves.

These collective initiatives demonstrate OIA's commitment to Oman Vision 2040 by reinforcing confidence in the Omani economy and supporting long-term sustainability. They also position the Sultanate of Oman as a trusted and competitive investment destination.

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Contact: 
Al Yaqdhan Ali Al Abri
Senior Officer - Strategic Communication
Tel: +968 24745659
[email protected] 

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