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 has set out plans to cut its budget de cit.

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. Iran and Oman are aiming for $1bn of trade in 2019.

Financial risk (LOW): Maintaining robust banking sector regulation and supervision will be important to bolster nancial sector resilience. The stock market is into a third year of declining values.

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.