Saturday 11 / April / 2026
Muscat: The quarterly bulletin on the performance of Oman’s economy, issued by the Ministry of Economy, highlighted improving global economic outlooks and the continued resilience of domestic economic indicators, despite challenges related to international trade and energy market fluctuations.
The International Monetary Fund raised its global growth forecast in January 2026 to 3.3 percent, up from 3.1 percent projected in October 2025, citing the strength and resilience of global economic activity despite trade disruptions during 2025. This improvement is attributed to a decline in tariff pressures and sustained strong investment momentum in artificial intelligence.
The IMF maintained its global growth estimate at 3.3 percent for 2025, while noting potential risks that could lead to a reassessment of these projections, particularly developments in the technology sector and rising geopolitical tensions.
Global trade growth is expected to slow to 2.6 percent in 2026, compared to 4.1 percent in 2025, alongside a projected decline in global inflation to 3.8 percent.
In the same context, global debt reached a record high of $348 trillion by the end of 2025, driven by increased government borrowing in major economies.
Based on the 2025 financial results, Oman’s state budget recorded a deficit of OMR 480 million in 2025, compared to a surplus of OMR 540 million in 2024. This was mainly due to lower oil and gas revenues, which led to a 7.99 percent decline in total public revenues, while public spending remained largely unchanged during the year.
On the other hand, Oman saw improvements in its credit ratings. Fitch upgraded the Sultanate’s rating in 2025 to investment grade (BBB) with a stable outlook, while Standard & Poor’s affirmed its rating at BBB with a stable outlook. Moody’s also upgraded Oman’s rating to Baa3 with a stable outlook, reflecting the strength of the country’s financial position and its ability to meet obligations.
Total merchandise exports declined by 7.14 percent to OMR 23.26 billion in 2025, due to a 15.21 percent drop in oil exports, while non-oil exports grew by 7.48 percent.
Imports increased by 2.72 percent to OMR 17.17 billion, resulting in a trade surplus of OMR 6.10 billion.
Gross domestic product (GDP) at current prices grew by 2.30 percent to reach OMR 42.14 billion in 2025, driven by strong growth in natural gas activity (56.94 percent) and a 3.71 percent increase in non-oil activities.
At constant prices, GDP growth reached 2.40 percent, primarily supported by a 3.11 percent rise in non-oil activities, reflecting improved performance in agriculture, industry, and services. The value added of oil activities also increased by 1.09 percent.
Inflation recorded a slight increase to 0.99 percent in 2025, compared to 0.60 percent in 2024, remaining within safe levels.
Foreign direct investment (FDI) reached approximately OMR 31.38 billion by the end of 2025, marking a growth of 8.13 percent. The oil and gas extraction sector accounted for the largest share, followed by manufacturing and financial intermediation.
By country, the United Kingdom ranked as the top investor, followed by the United States and Kuwait.
The Ministry of Economy affirmed that these indicators reflect the continued improvement of Oman’s economic performance, supported by the growth of non-oil activities, enhanced fiscal stability, and an attractive investment environment.
