• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 1 hour Satellite Moons to Replace Streetlamps?!
  • 21 hours US top CEO's are spending their own money on the midterm elections
  • 1 hour EU to Splash Billions on Battery Factories
  • 7 hours U.S. Shale Oil Debt: Deep the Denial
  • 7 hours The Balkans Are Coming Apart at the Seams Again
  • 23 hours OPEC Is Struggling To Deliver On Increased Output Pledge
  • 7 hours The Dirt on Clean Electric Cars
  • 18 hours Uber IPO Proposals Value Company at $120 Billion
  • 9 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 21 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day Petrol versus EV
  • 24 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 1 day 10 Incredible Facts about U.S. LNG
U.S-Saudi Clash Could Spell Disaster For OPEC

U.S-Saudi Clash Could Spell Disaster For OPEC

The Khashoggi case could have…

Leaked Document: OPEC+ Struggling To Lift Oil Production

Leaked Document: OPEC+ Struggling To Lift Oil Production

An internal OPEC document suggests…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Oman To Sell $2 billion In Islamic Bonds To Close Oil Crisis Budget Deficit

Muscat

Low oil revenues are prompting the government of Oman to sell $2 billion in Islamic bonds to raise funds for the national budget, according to a new report by Bloomberg.

We are confident that our economy is heading in the right direction because the government has taken several measures for economic and fiscal reform,” Finance Minister Darwish Al Balushi said in Saudi Arabia. “These measures led to improvement in the fiscal situation and the government will continue to take more measures.”

The hole in Oman’s national budget will measure 12 percent of gross domestic product (GDP) this year, though forecasts predict the shortfall will decrease in coming years. Last year, the gap stood at a whopping 21 percent.

Muscat is also considering forging public-private partnerships to balance the cost burdens of nationalized industries hit by the 2.5-year oil price crisis. Oman plans to pump one million barrels per day on average this year.

The country said earlier this year that it would sell stakes in state-owned oil and gas downstream companies to prop up government finances, but these plans have been in the making for a few years now without concrete action, to the chagrin of international financial observers.

S&P Global Ratings lowered the monarchy’s credit rating from BBB- to BB+ last week, to which the finance minister had prepared a response.

“We respect the opinion of S&P as a professional entity, but at the same time we are confident of the strength of our economy and we trust that the international financial market has a lot of confidence in our economy," Al Balushi said. “It’s true that in the past two years part of our reserves was used to cover the deficit, however, our reserves are still in a comfortable position.”

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment
  • Naomi on May 18 2017 said:
    Venezuelan bonds and Oman bonds should pay the same interest. Both have the same quality management and integrity.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News