Two informed sources said the government of the Sultanate of Oman is working on an environmental and social framework for governance that could allow the Gulf state to expand its funding base.
The move comes as Oman is working with the International Monetary Fund to develop a debt strategy after the state treasury was hit by low oil prices and the Covid-19 pandemic last year.
One of the sources claimed that the development of the framework it is still in its early stages.
A second source said it was not linked to specific plans to initiate a debt deal, but it would help attract investors who would focus on tale framework in future fundraising operations.
The Ministry of Finance did not immediately respond to a request for comment.
Since the collapse of the oil price in 2014, the debt-to-GDP ratio has risen from 15% in 2015 to around 80% last year.
But last year the Sultanate took a number of steps to reform its financial situation, including the introduction of a value-added tax.
This has contributed to its access to global debt markets and raising billions of dollars, both in loans that in bonds, questyear, despite the growing budget deficit.
The development of the sustainable framework takes place in amid a growing awareness among international investors of the environmental and social risks associated with governance and the efforts of the oil-producing Gulf region to attract capital for low-carbon and environmentally sustainable investments.
Oman stated in its economic development plan of questyear, “Vision 2040”, which aims to rank among the top 20 countries in the global environmental performance index by 2040.
Oman currently ranks 110th out of 180 countries.
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