MUSCAT: Oman plans to sell $2 billion (Dh7.34 billion) of Islamic bonds this month as it seeks to trim a large budget deficit caused by lower oil revenue, Finance Minister Darwish Al Balushi said.
The crude exporter’s budget deficit will reach 12 per cent of economic output this year and it will continue to narrow in the coming years, Al Balushi said in an interview Wednesday in Jeddah, Saudi Arabia, on the sidelines of the Islamic Development Bank’s annual meeting.
“We are confident that our economy is heading in the right direction because the government has taken several measures for economic and fiscal reform,” he said. “These measures led to improvement in the fiscal situation and the government will continue to take more measures.”
Al Balushi added that privatisation is among the reforms being undertaken by the government, including public-private partnerships.
Oman’s budget deficit swelled to almost 21 per cent of gross domestic product in 2016, according to the International Monetary Fund. With smaller oil reserves and less of a cushion in government savings than its wealthier neighbours, Oman is one of the most vulnerable countries in the Gulf Cooperation Council as lower oil prices pressure state finances.
