International Finance

Oman’s net foreign assets increase by OMR990 mn in 2018

Increase in petroleum prices and exports are some of the major contributors to the rise in foreign assets

Oman’s net foreign assets have increased by OMR990 million in 2018. The growth can be attributed to the increase in petroleum prices as well as the increase in the volume of Oman’s exports.

According to the Central Bank of Oman, the country’s net foreign assets have increased by OMR 990 million. The foreign assets are jointly owned by the CBO and the State General Reserve Fund (SGRF).

“The overall balance of payments was in surplus, leading to an accretion of OMR 990 million in the country’s foreign assets,” said TahirSalim Al Abri, executive president of the Central Bank of Oman told the media.

Another factor that contributed to the growth of foreign assets is foreign direct investments in Oman’s oil and gas sector. The country also issued international bonds to finance its fiscal deficit. Net inflows in the capital and financial accounts led to a surplus in the overall balance of payments, which increased foreign exchange reserves by OMR 990 million.

Recently, the Oman International Development and Investment Company (Ominvest) signed a partnership agreement with Oxford Business Group, a London-based global research and advisory firm.

According to the agreement, the investment holding company will publish a report which will detail the legislative and regulatory reforms that have been introduced to enhance Oman’s business climate for investors. The report will also analyse the recently announced Commercial Companies Law, which is expected to be pivotal in attracting foreign direct investment to Oman.

Despite slow growth and economic downturn, Oman recorded a GDP growth of 12 percent in 2018. However, in 2017 Oman posted a GDP growth of 7.8 percent.

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