Fitch Ratings has revised Oman’s outlook to positive, maintaining a BB+ IDR due to fiscal improvements and increased GDP per capita. In contrast, Egypt’s growth outlook has been downgraded to 3.7% for 2024/2025, influenced by Suez Canal disruptions. The agency expects a slow recovery for Egypt’s economy, while Oman shows resilience driven by non-oil growth and robust fiscal policies.
Fitch Ratings has positively adjusted Oman’s long-term foreign currency issuer default ratings from stable to positive, while affirming its IDR at BB+. This upgrade is attributed to Oman’s improved fiscal capabilities to mitigate future shocks, enhanced GDP per capita, recent budget reforms, and a decline in government debt relative to GDP. Despite this favorable outlook, Oman’s rating remains lower than those of regional counterparts, such as Saudi Arabia and the UAE, which boast higher ratings due to their economic stability and capacity to meet financial obligations.
The evaluation by Fitch Ratings is critical to understanding the economic landscape of Oman and Egypt. Oman demonstrates increased economic resilience attributed to its fiscal reforms and better management of public finances. In contrast, Egypt faces challenges resulting from external disruptions affecting its economic growth projections, particularly in light of recent disruptions in the Suez Canal that have impacted its revenue generation. The contrasting outlooks for these nations reflect broader trends in the Gulf and North African regions, where economic stability and growth are closely monitored by international credit rating agencies.
In summary, Fitch Ratings’ revision of Oman’s outlook to positive highlights the country’s improved economic fundamentals and fiscal resilience, though it still lags behind some regional ratings. Conversely, the downgrade of Egypt’s growth forecasts signifies ongoing challenges as the nation navigates external economic pressures. These developments underscore the dynamic economic conditions faced by both nations amidst broader regional trends.
Original Source: www.arabnews.com
