Oman weighs costs of bailout from Gulf neighbors
Gulf countries might step up to keep Oman’s public finances afloat, but experts warn strings may be attached.
The erosion of Oman’s fiscal balance was discussed during high-level political meetings attended by Gulf officials, Bloomberg revealed. "Nothing has been decided," but the sultanate could seek financial assistance from its neighbors, the June 11 report mentioned.
Analysts warn such support could come with a price with regard to Oman's trademark independence in handling regional affairs. In recent years, the country stayed out of a Saudi-led military intervention in Yemen and an ongoing embargo imposed on Qatar by Saudi Arabia and the United Arab Emirates (UAE).
Zahabia Saleem Gupta, associate director at S&P Global Ratings, told Al-Monitor the two main reasons for support from Gulf Cooperation Council (GCC) countries are “to prevent contagion to their own financial markets and promote their foreign policy interests."
Given intra‐Gulf disputes, GCC foreign ministers are unlikely to speak with one voice as they did at the height of the 2011 Arab Spring protests to announce a $20 billion fund for Oman and Bahrain. GCC representatives did not respond to Al-Monitor's request for comment.
