Oman's 2025 revenue rises 8% as deficit narrows

MUSCAT: Oman’s public revenues rose 8 per cent in 2025, helping narrow the fiscal deficit by more than a quarter, as stronger oil and gas earnings offset higher spending on subsidies, development projects and social programmes, according to final budget figures released by the Ministry of Finance.
Actual public revenues reached RO 12.122 billion in 2025, exceeding the budgeted estimate of RO 11.18 billion. Public expenditure also increased, rising 7 per cent to RO 12.583 billion from the approved budget estimate of RO 11.8 billion.
As a result, the fiscal deficit narrowed to RO 461 million, compared with the budgeted deficit of RO 620 million, representing a decline of 26 per cent.
The improvement was largely driven by higher hydrocarbon revenues. Total oil and gas revenues reached RO 8.481 billion, an increase of 11 per cent over budget estimates.
Net oil revenues amounted to RO 6.640 billion, up 14 per cent from the budgeted RO 5.830 billion. The increase was supported by higher crude prices, with the average realised oil price reaching about $72 per barrel compared with the budget assumption of $60 per barrel.
Average oil and condensate production stood at approximately 999,000 barrels per day, slightly below the budget estimate of 1.001 million barrels per day, reflecting Oman’s commitment to OPEC+ production agreements.
Net gas revenues reached RO 1.841 billion, exceeding budget estimates by 4 per cent. The increase was attributed to stronger liquefied natural gas prices, with the average selling price rising to $7.49 from the budget assumption of $5.41.

Non-oil revenues totalled RO 3.641 billion, including RO 3.602 billion in current revenues and RO 39 million in capital revenues and recoveries.
On the spending side, current expenditure rose 2 per cent to RO 8.726 billion. Defence and security spending reached RO 3.066 billion, while expenditure by civilian ministries amounted to RO 4.780 billion. Public debt servicing costs totalled RO 880 million.
Development expenditure recorded the strongest increase, rising 38 per cent to RO 1.577 billion. The increase reflected higher allocations to ministries and governorates to accelerate projects under the Tenth Five-Year Development Plan (2021-2025).
Infrastructure projects accounted for 43 per cent of total development spending, followed by social infrastructure at 40 per cent, services at 12 per cent and productive sectors at 5 per cent.
Other contributions and expenditure rose 8 per cent to RO 2.28 billion. Fuel subsidies reached RO 124 million, significantly higher than the budgeted RO 35 million, while electricity subsidies increased to RO 606 million, up RO 86 million from the approved allocation, reflecting government measures to stabilise energy prices.
Public debt stood at RO 14.6 billion at the end of 2025, down by approximately RO 15 million from a year earlier.
Zaher bin Marhoon al Abri, Director-General of Treasury and Accounts at the Ministry of Finance, said the final budget results were broadly in line with approved estimates, reflecting prudent financial planning and effective public finance management.
He said the ministry would continue efforts to improve spending efficiency and diversify revenue sources in support of Oman Vision 2040 and long-term fiscal sustainability. — ONA