World Bank sees stronger Oman economy on fiscal, non-oil gains

MUSCAT: Oman’s economy is positioned for stronger growth in the coming years, supported by lower public debt, expanding non-oil activity and continued reforms under Oman Vision 2040, the World Bank Group said in Muscat.

The assessment came during a session reviewing the World Bank’s Gulf Economic Update, attended by senior officials and economic specialists.

In opening remarks, Abdullah bin Salem Al Harthy, Under-Secretary of the Ministry of Finance, said Oman is pressing ahead with a broad economic strategy focused on diversification, fiscal sustainability and digital transformation.

He said these priorities are central to strengthening economic resilience, supporting sustainable development and improving Oman’s regional and international competitiveness.

Al Harthy said the report comes at an important time, as geopolitical developments and changing global conditions are pushing Gulf economies to accelerate reforms and build more diversified growth models.

He said Oman’s cooperation with international financial institutions, including the World Bank Group, helps support national economic policies through research, technical expertise and global best practices.

The Oman chapter of the report, he said, highlights the country’s progress in fiscal discipline and sustainability, reflecting the government’s efforts to improve public financial management and strengthen the resilience of the national economy.

Al Harthy said the government is seeking to balance growth needs with long-term fiscal stability through prudent financial policies, more efficient public spending and higher non-oil revenues.

Speaking to the Oman Observer, Wendy Werner, Country Manager for the World Bank Group for Oman, said the report places Oman’s performance within wider Gulf and global economic trends.

“Today’s report covers Oman, but puts it in the context of the region and global economic trends,” Werner said.

She said the World Bank’s work in Oman focuses on supporting macroeconomic and policy analysis, while helping the Sultanate advance the goals of Oman Vision 2040.

“The objective of the World Bank Group here in Oman is to support the execution and deliberation of Vision 2040 and to help Oman’s growth, particularly in the areas of diversification and sustainable growth,” she said.

Werner said the World Bank’s growth projections for Oman are positive, with acceleration expected over the next few years.

She cited the sustained reduction in public debt, recognised by international credit rating agencies, and stronger growth in non-oil sectors as key signs of improvement.

“These are very positive indicators for resilient, credible and sustained higher growth,” Werner said.