RIYADH: Ratings agency Fitch has revised the financial outlook for Oman to stable from negative, as higher oil prices and fiscal reforms improve the balance-sheet of the Gulf state, Arab News reported.

“The revision of the outlook reflects actual improvements in, and the expected evolution of, key fiscal metrics including government debt/GDP and the budget deficit,” Fitch said in a statement.

This was driven by “higher oil prices and fiscal reforms, and a lessening of external financing pressures relative to recent years even as external funding needs remain high,” it added.

It added that the budget deficit is projected to be narrowed to 3.4 per cent of the gross domestic product in 2021, down from 16.1 per cent of GDP in the fiscal year 2021, with the hydrocarbon sector being the key revenue contributor.

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