MUSCAT: Oman’s exports will not be affected by Brexit, but a weaker pound could create a challenging scenario for the Sultanate.
The country’s direct exposure to the Brexit fallout is “insignificant”, according to the head of the government funded agency responsible for insuring exports.
Khalid Al Jashmi, acting general manager of Export Credit Guarantee Agency of Oman, (ECGAO) does, however, fear a weaker pound could cause problems with the Sultanate’s existing trading partners.
Less than a week after Britain’s decision to quit the European Union, financial analysts across the globe have been crunching numbers to assess potential risks and benefits.
Even media baron Rupert Murdoch has pitched in, believing that a weaker UK currency could put the UK in the driving seat economically.
It’s a view shared by Al Jashmi, who warns that Oman’s biggest trading partners might be tempted to exploit the weaker currency and trade with the UK instead of Oman.
The challenging scenario comes as officials revealed that slowdown of 25 per cent has been witnessed by the policy holders of the ECGAO in the first quarter of this year compared to the same period last year.
One said: “The problem of falling exports started before the end of 2015. Finance is the main reason for the exports falling.”
