Oman emerges as first GCC state to issue integrated sustainable financing framework

Business Wednesday 10/January/2024 17:41 PM
Oman emerges as first GCC state to issue integrated sustainable financing framework

Muscat: Moody's Investors Services today assigned a ‘Very Good’ rating to the Sultanate of Oman’s “integrated framework for sovereign sustainable financing”, which was evaluated within the parameters of the global Sustainability Quality Score (SQS2). Oman emerged as the first GCC state to issue this type of framework.

The Ministry of Finance plays a key role in backing the government’s efforts to achieve the goals of Oman Vision 2040, which cover the targets of zero carbon neutrality (cutting down greenhouse gas emissions) by 2050. This is realized by aligning Oman’s financing strategy with sustainability efforts undertaken by the government.
The sovereign sustainable financing framework constitutes an important instrument in achieving national strategies for all financial, economic, environmental and social aspects of sustainability.

It also achieves the United Nations Sustainable Development Goals (UN-SDGs), which are compatible with the international standards and principles of frameworks issued by the International Capital Markets Association (ICMA). In turn, it enables the Sultanate of Oman to meet its financial needs through sustainable financing methods.
The sovereign sustainable financing framework also seeks to establish a flexible structure that provides for the issuance of various sustainable financing debt instruments—in the form of loan agreements, bonds and instruments. This will help attract new specialized sustainable financing investors who contribute to projects that achieve environmental and social dimensions.

It is worth noting that the team operating within the Public Debt Management Unit at the Ministry of Finance took the lead in drafting the sovereign sustainable financing framework. The team joined hands with ministries and government departments to provide the required technical and general data needed for the realisation of environmental and social goals.