Moody's International credit rating reports economic growth for Oman despite crisis

Moody's International credit rating report has placed the Sultanate at A2 level alongside South Korea, Chili and Botswana. The report foresees stable economic future for the Sultanate. This rating for the Sultanate came as a result of a number of factors covered by Moody's report, such as the increase in the strength of the economy, the institutional power, the financial power for the government and the slow speed of being affected by risks. The report pointed out that the increase in the strength of the economy came as a result for the relative increase in the GDP and ability to pay the debts liabilities, as well as the increase in the GDP per capita in terms of purchase power, which is estimated by the International Monetary Fund (IMF) at $22,000. These factors placed the Sultanate at the 36th place among 181 countries covered by the IMF report. The report pointed out that the increase in the institutional power is attributed to the clean record of the Sultanate in paying its loan liabilities in time, as well as the good transparent government in terms of financial assets. The rise in the governmental financial strength comes also as a result for the financial surplus which has been collected during the last five-years and the building of foreign financial assets which will enable the Sultanate's government to supply the expected deficit in 2009/2010 budget due to slump in oil prices. The report also pointed out that the reserves of the governmental assets will enable the Sultanate to face the governmental expenditure without resorting to foreign loans. This rating might be affected if these reserves have been severely exhausted, the report added. The report attributed the low possibility for the Sultanate to be affected by the risks to its stable political environment and distinguished relations with countries of the world. The report affirmed that continuity of current global economic slowdown (if it continued) would be a challenge for providing job opportunities from the growing number of Omani youths.
Courtesy: menafn.com