Oman to sell $2bn Islamic bonds

Bloomberg

Oman plans to sell $2 billion of Islamic bonds this month as it seeks to trim a large budget deficit caused by lower oil revenue, Finance Minister Darwish Al Balushi said.
The crude exporter’s budget deficit will reach 12 percent of economic output this year and it will continue to narrow in the coming years, Al Balushi said in an interview Wednesday in Jeddah, Saudi Arabia, on the sidelines of the Islamic Development Bank’s annual meeting.
“We are confident that our economy is heading in the right direction because the government has taken several measures for economic and fiscal reform,” he said, adding that they include privatization and public-private partnerships. Oman’s budget deficit swelled to almost 22 percent of gross domestic product in 2016, according to IMF. With smaller oil reserves and less of a cushion in government savings than its wealthier neighbors, Oman is one of the most vulnerable countries in GCC as lower oil prices pressure state finances.