Oman’s state-owned telecommunications firm, Omantel, obtained a credit standing improve from Fitch Scores at present.
The New York-based credit standing company upgraded Omantel to “Steady” from its earlier outlook of “Unfavorable,” based on a press launch.
Fitch mentioned that Oman’s fiscal well being improved for quite a lot of causes. Omantel is 51% owned by the Omani authorities, and excessive oil costs have resulted in additional authorities income. Like different Gulf states, Oman bases its budget largely on proceeds from oil gross sales.
Oil costs plummeted in 2020 at the beginning of the COVID-19 pandemic, however coordination between main oil producers resulted in price increases all through 2021. Costs went up once more final week when Russia invaded Ukraine.
Oman participated in supply coordination led by Saudi Arabia and Russia final yr in an effort to drive up costs. The federal government of Oman additionally obtained a “Stable” ranking from Fitch in December.
Omantel’s monetary state of affairs additionally improved final yr when it agreed to sell its 2,890 mobile phone towers in Oman to the British telecommunications firm Helios Towers for $575 million in money.
Fitch additionally famous Omantel’s buyer base grew in 2021 resulting from its prioritization of postpaid plans, the place customers pay their cellphone payments primarily based on their utilization on the finish of the billing interval.
Omantel has additionally to date managed to keep up its market share in Oman within the face of recent competitors, based on Fitch. Omantel’s market share was 52.4% at the beginning of 2021, based on Oman Every day Observer.
Maybe the most important risk to Omantel is the British telecom large Vodafone, which turned Oman’s third cell service supplier this month. Kuwait’s Zain telecom additionally operates within the Gulf nation.
Oman started an formidable reform package in 2020. The hassle has targeted on financial modernization, together with the retirement of long-serving ministers, shrinking the scale of presidency and the launch of a sovereign wealth fund.
Oman’s economy contracted and its price range deficit skyrocketed in 2020 amid the coronavirus pandemic, largely resulting from lowering oil revenues.
Financial hardship has compelled the Omani authorities to rethink its custom of environmental safety, Sebastian Castelier wrote for Al-Monitor final month.
