Oman faces sizeable and persistent twin de cits and the prospect of a meagre growth outlook, while succession risk hangs over the sultanate.

• Economic risk (HIGH): Higher prices following cuts in Opec production quotes may help reduce the scal and current account de cits. The Government is on track to beat its budget de cit target.

• Political risk (MEDIUM): Oman has opened a new shipping trade route with Iran and hosted a ‘Made in Qatar’ exhibition, risking the ire of GCC states by building trade links with the emirate. Fears of a succession problem still exists.

• Financial risk (LOW): Maintaining robust banking sector regulation and supervision will be important to bolster nancial sector resilience in support of sustained economic growth in the wake of ratings downgrades of the banking sector.

• Commercial risk (MEDIUM): Investors still face a number of obstacles to set up a business in Oman. It is envisaged that 100% foreign shareholding will be permitted in some sectors, such as industry and tourism under the Foreign Capital Investment Law.