In 2017, the Ministry of Finance (MOF) established the Debt Management Office (DMO) to manage the public debt portfolio effectively. The MOF, as the authorized entity, is responsible for borrowing on behalf of the government to meet financing needs, aiming to:
1- Finance the State’s general budget deficit.
2- Support the balance of payments.
3- Finance infrastructure projects and priority government development projects.
4- Restructure public debt.
5- Support the financial policies of the Central Bank of Oman and provide its needs relating to foreign currency reserves.
6- Fulfil the governmental obligations at the lowest cost.
7- Provide the necessary funding to manage natural disasters and emergencies declared by the government.
The Public Debt Law, which was issued in compliance with Royal Decree No. (68/2023), includes a decision in Article Three to establish a Public Debt Management Committee (DMC). This committee will determine its work system and will include representatives from the Ministry of Finance, Ministry of Economy, Central Bank of Oman, Oman Investment Authority, and two independent expert members in finance and economics as proposed by the committee.
The DMC has several responsibilities, including developing a general framework for annual and medium-term public debt management strategies and policies for presentation to the minister, who will submit the same to the Council of Ministers for their approval. The committee also reviews the annual borrowing plan to ensure the sustainability of public debt and its growth rate. Additionally, the committee develops the necessary plans for the management and use of public debt. It determines public debt instruments and mechanisms, as well as determines the means by which to avoid or mitigate financial and other risks associated with any of the public debt instruments or their trading.
