Oman’s 7-Year Local Sukuk Attracts Strong Investor Interest
Oman’s 7-year local sovereign sukuk received very strong demand from investors, leading to oversubscription. On Thursday, the Oman Sovereign Sukuk Company announced that its 10th local sukuk issuance attracted more bids than the amount offered.
The total value of the sukuk issue was $520 million (OMR 520.2 million). Investor interest was high, with total subscription requests reaching $719.4 million (OMR 276.6 million), according to the official Oman News Agency (ONA). This shows strong confidence in Oman’s financial stability and debt management.
The sukuk offered competitive returns. The minimum accepted yield was 4.07%, while the average yield was 4.11%. The maximum accepted yield reached 4.15%. These rates reflect healthy demand and solid market conditions.
The sukuk was issued on Thursday and will mature in December 2032. Profit payments will be made twice a year, in June and December, throughout the life of the sukuk.
Oman’s Public Debt Position
By the end of the third quarter of 2025, Oman’s total public debt stood at $38.23 billion (OMR 14.7 billion). This is slightly higher than the $37.4 billion (OMR 14.4 billion) recorded during the same period last year, according to data from the Ministry of Finance.
Despite the small increase, Oman’s debt level remains well managed and far lower than in previous years. The government has focused on reducing debt while maintaining economic growth.
Recent International Sukuk Issuance
Oman also returned to the international capital markets recently. The country issued a $1 billion (OMR 385 million) sovereign sukuk, as stated in the Ministry of Finance’s third-quarter bulletin released in November 2025.
This international sukuk has a 7.5-year maturity. It was priced with a yield spread of 60 basis points above US Treasury bonds and offers an annual coupon rate of 4.525%. The successful issuance highlights strong global investor interest in Oman.
Credit Rating Upgrade
Earlier this month, Fitch Ratings upgraded Oman’s long-term foreign-currency credit rating to ‘BBB-’, up from ‘BB+’, with a stable outlook. The upgrade reflects Oman’s stronger external financial position and increased confidence in the government’s commitment to fiscal discipline, even if oil prices fall.
Fitch noted that Oman’s government debt has dropped sharply to an estimated 36% of GDP in 2025, down from 68% in 2020. This improvement follows steady debt repayments since Sultan Haitham bin Tarik took office in 2020.
Oman has also strengthened its external position. In 2024, the country became a net external creditor, moving from a 31% net debtor position in 2021 to a 2% creditor position. This positive shift was driven by government debt repayments, reduced borrowing by state-owned companies, and growth in private-sector assets.
Overall, strong sukuk demand and improved credit ratings show growing confidence in Oman’s economy and financial management.
Published: 26th December 2025
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