Oman’s government plans to raise RO850 million from the local market in 2026 through the issuance of government development bonds and sovereign local sukuk. The planned issuances form part of the government’s strategy to meet its financing needs for the year, including covering the projected budget deficit and servicing public debt.
Total domestic borrowing in 2026 is estimated at RO902 million, which includes government development bonds and sovereign local sukuk. According to the Ministry of Finance’s 2026 budget guidance, the government will raise RO850 million through four issues of government development bonds worth RO150 million each and two sovereign local sukuk issuances valued at RO125 million each.
The Ministry of Finance said the borrowing plan for 2026 was developed based on projections outlined in the State’s General Budget for 2025. These projections cover public debt levels, overall financing requirements and the government’s funding strategy for the year ahead.
Total financing needs for 2026 are projected at RO2.292 billion, consisting of a budget deficit of RO530 million and RO1.762 billion required for public debt servicing. The government plans to meet these requirements through a mix of local borrowing of RO902 million, external borrowing of RO990 million and withdrawals from reserves amounting to RO400 million.
The ministry noted that the borrowing plan may be adjusted depending on actual financing needs and prevailing market conditions. It added that the strategy is designed to meet funding requirements at a reasonable cost while maintaining acceptable risk levels.
The 2026 borrowing plan also aims to improve the efficiency of the domestic debt market by expanding the market for government securities. In addition, it seeks to reduce risks in the public debt portfolio through proactive debt management, lower financing costs and diversify funding sources by broadening the investor base.
The ministry said the government will continue to strengthen the management of its financial obligations by exploring opportunities for early repayment and refinancing of existing loans and financial instruments with lower-cost and longer-maturity alternatives. This approach is intended to improve the debt structure and enhance sustainability over the medium and long term.
In 2025, Oman planned to raise RO750 million through local borrowing and RO1.304 billion via external debt. The Ministry of Finance said it achieved notable progress in public debt management during the year through disciplined borrowing policies and effective liability management.
According to preliminary results from the 2025 budget, Oman has reduced total public debt from RO19.8 billion at the end of 2020 to RO14.6 billion by the end of 2025. Over the same period, the sultanate’s public debt-to-GDP ratio declined from 67.9 percent to 35.7 percent.