The Government Development Bonds are financial instruments issued by the Government of the Sultanate of Oman to provide an investment outlet for the surplus resources available in the economy and also to finance the capital expenditure of various developmental projects envisaged in the Five Year Development Plans, or/and to finance the fiscal deficit. The bonds are direct and unconditional obligations of the Government and hence they are considered as risk-free benchmarks for the system.
The bonds are long-term instruments that carry a maturity of more than one year, generally issued for maturities ranging from 3 to 10 years, and the interest is paid semi-annually. The bonds are also issued through a competitive auction process. The bidding of these bonds is opened for Residents & non- residents.
The secondary market trading of bonds can take place at the Muscat Securities Market at prices determined by the market forces of supply and demand.