Oman

February 2007 | Ratings Update

Although our overall view of Oman remains one of lasting stability, we have some concerns that the country's decision to withdraw from the proposed currency union could cause some dislocation from the other five members. With the most meagre oil and gas reserves in the region, Oman will not be able to compete with a unified bloc sharing a joint regulatory system, as well as tax and monetary policies, and it could also lose out on political benefits arising from the union. Moreover, intra-regional communications could break down as Oman is left out of meetings relating to the monetary union.

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