DUBAI: Oman is looking to raise up to $2 billion with a loan arranged mostly by local and regional lenders, as international banks tread carefully due to the deterioration of its credit profile, sources said.
Oman started talks with banks for a new loan of at least $1 billion in November, sources told Reuters at the time, as it geared up for heavy debt redemptions.
It is now working with a group of banks to raise a $1.1 billion facility which could go up to $2 billion in size depending on market appetite, two sources familiar with the matter said.
The banks leading the deal are HSBC, Mashreqbank, Gulf International Bank, Bank Muscat and Bank Dhofar, said the sources.
The loan, now being marketed to a wider group of lenders, has a 15-month maturity with the possibility to extend it by an additional 12 months at the borrower’s discretion.
HSBC declined to comment. The other banks and Oman’s ministry of finance did not respond to comment requests.
The presence of only HSBC among the leading group indicates international banks have become more cautious about their exposure to Oman due to its downward credit trajectory over the past few years, as lower oil prices hammered state finances, said the sources.
For smaller regional banks, Oman — rated sub-investment grade by all major credit ratings agencies — represents instead a good opportunity as its borrowing costs have increased.
“The overall landscape of lending in Oman has been changing,” said one of the sources.
Part of the new loan will refinance a $1 billion debt facility due in January, the same source said.
Oman’s external debt maturing this and next year amounts to $10.7 billion, or about 7.5% of gross domestic product, S&P Global Ratings has said.
Oman expects a 2021 budget deficit of 2.24 billion rials ($5.82 billion) this year. To make up the shortfall the government aims to raise about 1.6 billion through borrowing and draw 600 million from its reserves. ($1 = 0.3847 Omani rials)
Oman raising up to $2 bln loan with mostly regional banks — sources
https://arab.news/wmj7n
Oman raising up to $2 bln loan with mostly regional banks — sources
- Oman started talks with banks for a new loan of at least $1 billion in November
- Part of the new loan will refinance a $1 billion debt facility due in January
Egypt defies African FDI trend with inflows of $11bn in 2025: UNCTAD
RIYADH: Egypt emerged as Africa’s top destination for foreign direct investment in 2025, attracting an estimated $11 billion in inflows in a year marked by declining investment across the continent.
According to UNCTAD’s latest Global Investment Trends Monitor, the North African country ranked ahead of other major African economies despite a sharp regional slowdown.
The performance underscores Egypt’s relative resilience at a time when foreign investment into Africa has normalized following an unusually strong 2024, which UNCTAD said was inflated by a single large project. As a result, the 2025 data reflects a return to more typical investment levels across the continent.
“Among African economies, inflows to Angola reached an estimated $3 billion, marking a return to positive values after nine consecutive years of net divestments,” the report stated.
It added: “Egypt, with inflows of $11 billion, remained the largest FDI host country in Africa.”
While Egypt solidified its position as Africa’s leading FDI host, other notable movements on the continent included Mozambique, where inflows surged 80 percent to $6 billion, driven by renewed activity in major liquified natural gas projects.
Angola also saw a positive shift, recording an estimated $3 billion in FDI after nine consecutive years of net divestments.
UNCTAD noted that Egypt’s strength extended beyond headline inflows, with the country also contributing to an increase in greenfield investment activity across Africa. While the number of greenfield projects fell globally and across most lower-income economies, Africa recorded a 5 percent increase in project numbers in 2025, supported in part by growth in Egypt and Côte d’Ivoire.
Globally, FDI flows rose by 14 percent in 2025 to approximately $1.6 trillion, though growth was heavily concentrated in developed economies, which saw a 43 percent increase.
In contrast, flows to developing economies declined by 2 percent, with the least developed countries particularly affected; three-quarters experienced stagnant or falling investment.
The report highlighted that new project announcements remained weak globally amid elevated policy uncertainty, with international project finance declining for the fourth consecutive year.
Looking ahead, UNCTAD warned that geopolitical tensions, regional conflicts, and economic fragmentation could continue to suppress real investment activity in 2026, even as financing conditions are expected to ease.
For Africa, sustaining FDI inflows will require navigating persistent challenges such as financing constraints, risk perceptions, and structural vulnerabilities.
