Mitigating Fiscal Risks in Oman
Selected Issues Papers, June 5, 2024
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- Mitigating Fiscal Risks in Oman
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Bibliographic details
- Authors: Abdullah Alhassan, Dalia Aita
- Published: June 5, 2024
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400277795.018
Executive summary
- Fiscal risks in Oman are multifaceted and their potential impact on the fiscal position could be significant.
- Identification, monitoring, transparent reporting, and effective risk management of fiscal risks are key components of a sound medium-term fiscal framework and paramount in underpinning fiscal credibility and the sustainability of public finances.
- This note revisits the exposure of Oman’s fiscal position to an array of potential risks, with a focus on oil price volatility and potential risks stemming from state-owned enterprises.
Focus areas analyzed
- Oil price volatility
- Zooms in on the impact of oil price volatility on Oman’s fiscal position.
- Considers downside oil price scenario as a material source of fiscal risk.
- State-owned enterprises (SOEs)
- Examines potential risks stemming from state-owned enterprises, including SOEs debt, governance, and performance.
- Highlights SOEs as channels for contingent fiscal liabilities.
Actions documented by Omani policymakers
- Documents actions taken by Omani policymakers to mitigate the impact of fiscal risks (actions are described in the note; specifics in the full text).
Recommendations on fiscal risk disclosure and management
- Provides further recommendations focused on:
- Fiscal risk disclosure.
- Fiscal risk management practices.
- Strengthening transparency around public enterprises and contingent liabilities.
Content in this bundle
- Mitigating Fiscal Risks in Oman; Oman: Selected Issues Paper No. 2024/017; December 14, 2023