Summary: A growing debt crisis imperils Oman’s vaunted ability to maintain neutrality in a tough neighbourhood.
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A good article. A slight correction because, just after this was published yesterday, the Sultan issued Decree 121 which mandates VAT next spring (I’m assuming a 1st of April start, though the official reports just says “within 180 days” of publication in the Gazette, which will happen on Sunday). Previously parliament had indeed recommended a delay until 2022 but the Sultan is not obliged to adhere to its advice and wisely went ahead with an early introduction. Delaying it further would have cost nearly $1bn in revenue, which would have made Oman’s financing challenge even harder. The VAT announcement likely came ahead of the marketing of bonds, which was expected a few weeks ago but now may happen in the next few days (before Standard & Poor publishes its scheduled ratings update on Friday, which might see a further downgrade to B+). News on the VAT law here: http://omannews.gov.om/NewsDescription/ArtMID/392/ArticleID/21451/VAT-To-Come-Into-Force-Within-180-Days