Oman’s YTD Budget Deficit Shrinks 46% in August

The Sultanate of Oman posted a YTD budget deficit of OMR 1bn ($2.6bn) in August, a 46.2% fall YoY, with the fiscal position benefitting from a rise in oil prices as per the Ministry of Finance. YTD state revenues increased 13.9% YoY to OMR 6.3bn ($16.4bn) end-August. Overall public spending increased 1.7% YoY. Earlier this week, Oman’s outlook was revised to positive by S&P on the back of its improving fiscal position. Oman managed to reduce its budget deficit by 22.2% YoY to OMR 1.21bn ($3.14bn) by end-July 2021 after it managed to improve its revenues by 0.5% and reduce its public spending by 4.7% YoY. The revenue increase was helped by a rise in oil prices and dividends received from Oman Investment Authority.

Oman’s dollar bonds were stable – its 6.25% 2031s were at 107.4, yielding 5.23%.

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