Oman is set to raise RO850 million in 2026 through the issuance of local government bonds and sovereign sukuk as part of its broader fiscal and financing strategy for the year. The move reflects a continued focus on structured debt management and strengthening domestic capital markets.

The planned fundraising will take place within the local market and will include multiple tranches of government development bonds alongside sovereign sukuk offerings. By combining conventional bonds with Sharia compliant instruments, the government aims to cater to a wide spectrum of investors, including banks, institutions, and individual participants.

This domestic borrowing forms part of Oman’s overall financing needs for 2026, which are expected to cover budgetary requirements as well as debt servicing obligations. Rather than relying solely on external borrowing, the government is balancing its funding mix by tapping into local liquidity and maintaining control over financing costs.

Issuing bonds and sukuk locally also serves a strategic purpose beyond funding. It supports the development and depth of Oman’s domestic financial markets, encourages investor participation, and strengthens confidence in sovereign instruments. For local investors, these issuances provide relatively stable investment opportunities tied directly to government backing.

The approach aligns with Oman’s broader fiscal reform agenda, which emphasizes sustainability, discipline, and reduced exposure to external financial shocks. By managing borrowing through a diversified mix of instruments and markets, the government continues to refine its long term debt strategy.

In practical terms, the RO850 million plan signals continuity rather than crisis. It shows a government using established financial tools to meet obligations responsibly while keeping domestic markets active and engaged. This is not headline grabbing finance. It is controlled, deliberate, and exactly how public borrowing is supposed to look.