Oil market recovery and budget reforms front-loaded in 2020 have set the GCC countries’ fiscal balance on a more sustainable path. The issuance of the Medium-Term Fiscal Plan (Tawazun) in Oman (Ba3 neg./B+st./BB- neg.) has been seen positively by market participants but execution risks remain. We expect a potential reassessment of the country outlook by Moody’s and Fitch to stable by 2022 on better fiscal position. The current fundamental situation makes us comfortable with the country, which still offers inexpensive valuation versus their rating category, despite the recent rally, and even better than domestic corporates.