March 30 (Reuters) - Credit ratings agency S&P on Friday revised its outlook on Oman to positive from stable, citing the country's strengthening fiscal position.
S&P also affirmed its rating for the country at 'BB+/B'.
In January, Oman forecast a budget deficit of 640 million rials ($1.66 billion) for 2024, swinging from a surplus in 2023 as lower oil production and prices weigh on public finances.
Like its Gulf oil and gas exporting neighbours, Oman is seeking to diversify its sources of income and economic sectors away from hydrocarbons, but remains largely reliant on oil revenue.
Oman's
Vision 2040
, an economic development plan launched in 2021, envisions the country cutting the share of the oil sector's share of gross domestic product (GDP) to 16% in 2030 and 8.4% in 2040, down from 39% in 2017.
"The government's balance sheet will strengthen and the economic reform program could lead to faster-than-expected deleveraging in many state-owned enterprises, without dampening economic growth outcomes," S&P said in a statement.
The ratings agency expects Oman's real GDP to expand by about 2% per year on average during the 2024-2027 period.
In September 2023, S&P
upgraded
Oman's credit rating to 'BB+' on firmer macroeconomic fundamentals.
($1 = 0.38 rials) (Reporting by Anandita Mehrotra in Bengaluru; Editing by Paul Simao)
