Muscat: The Sultanate of Oman has paid RO 700 million ($1.8 billion) towards its maturing international sukuk bonds, cutting down the volume of public debt from RO 15.3 billion by the end of 2023 to RO 14.5 billion now.

This contributed to a decline in the ratio of public debt to gross domestic product (GDP) from 36.5 percent at the end of 2023 to 33.9 percent during the first half of 2024.

The Ministry of Finance said that the Sultanate of Oman’s financial obligations were managed through the repayment of external loans and the issuance of government development bonds, as part of Oman’s prompt settlement of financial obligations and its continuous review of related financing costs.

The Ministry pointed out that the repayment of foreign debts during 2024 reflected in the distribution of risks associated with the public debt portfolio.

As a result, the ratio of external debt in the total volume of public debt declined from 74 percent at the end of 2023 to 71 percent during the first half of 2024, the ministry explained.

The ministry added that this process is consistent with the government’s efforts to bring down public debt and support the local debt market through a lower risk rate.

The Ministry affirmed that financial surpluses achieved are redirected to enhance social spending, stimulate economic growth, manage financial obligations, reduce public debt and build reserve buffers to manage financial obligations.

The government strives to strengthen Oman’s fiscal position, reduce the burden of public debt, minimize public debt risks and enhance creditworthiness by improving credit rating indicators.