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
BYD Americas CEO hails Middle East as ‘homeland for innovation’
- In an interview on the sidelines of Davos, Stella Li highlighted the region’s openness to new technologies and opportunities for growth
DAVOS: BYD Americas CEO Stella Li described the Middle East as a “homeland for innovation” during an interview with Arab News on the sidelines of the World Economic Forum.
The executive of the Chinese electric vehicle giant highlighted the region’s openness to new technologies and opportunities for growth.
“The people (are) very open. And then from the government, from everybody there, they are open to enjoy the technology,” she said.
BYD has accelerated its expansion of battery electric vehicles and plug-in hybrids across the Middle East and North Africa region, with a strong focus on Gulf Cooperation Council countries like the UAE and Saudi Arabia.
GCC EV markets, led by the UAE and Saudi Arabia, rank among the world’s fastest-growing. Saudi Arabia’s Public Investment Fund has been aggressively investing in the EV sector, backing Lucid Motors, launching its brand Ceer, and supporting charging infrastructure development.
However, EVs still account for just over 1 percent of total car sales, as high costs, limited charging infrastructure, and extreme weather remain challenges.
In summer 2025, BYD announced it was aiming to triple its Saudi footprint following Tesla’s entry, targeting 5,000 EV sales and 10 showrooms by late 2026.
“We commit a lot of investment there (in the region),” Li noted, adding that the company is building a robust dealer network and introducing cutting-edge technology.
Discussing growth plans, she envisioned Saudi Arabia and the wider Middle East as a potential “dreamland” for innovation — what she described as a regional “Silicon Valley.”
Talking about the EV ambitions of the Saudi government, she said: “If they set up (a) target, they will make (it) happen. Then they need a technology company like us to support their … 2030 Vision.”
