Financing shortfall will push Oman to uneasy austerity
Thursday, January 28, 2021
Significance
A fiscal crunch exacerbated by the pandemic and associated oil-price crash has forced the authorities to step up long-term ‘Omanisation’ efforts, ultimately taking pressure off the bloated public sector wage bill. This comes as Sultan Haitham bin Tariq Al Said, one year into his reign, launches a raft of new political, military and economic initiatives.
Impacts
- Oman will remain compliant with OPEC+ oil production cuts.
- The sultanate will boost output at its competitive giant Ghazeer and Khazzan gas fields in Block 61 to benefit from high prices.
- Muscat will prioritise agriculture, fisheries and logistics for non-oil growth but struggle to secure project financing post-pandemic.