Oman this week became the latest government in the Gulf to tap international bond markets, taking the region’s issuance so far in 2020 to an annual record. In Oman's case, while this will help to finance large twin budget and current account deficits, it will push the public debt-to-GDP ratio even higher and add to our concerns about weak public finances. We think that Oman, along with Bahrain, will ultimately have to rely on financing from their Gulf neighbours to keep dollar pegs intact.
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