Non-oil growth trails petroleum as GDP rises 2.6% in Q1

MUSCAT: Oman's economy expanded by 2.6 per cent in real terms in the first quarter of 2026, with petroleum activities growing at nearly twice the pace of the non-oil sector, according to the Ministry of Economy's latest Economics Brief.
Gross domestic product at constant prices totalled RO 9.69 billion at the end of Q1 2026, the ministry said in the August edition of its key economic indicators bulletin.
Petroleum activities accounted for RO 3.04 billion, a year-on-year increase of 4.6 per cent, while non-petroleum activities reached RO 7.04 billion, up 2.4 per cent over the same period.
The bulletin also pointed to a sharp divergence in foreign direct investment. The total FDI position stood at RO 32.20 billion at the end of the first quarter, an increase of 8.7 per cent year on year. Flows of foreign direct investment, however, fell 35.7 per cent to RO 2.57 billion — the only indicator in the brief to register a decline.
Consumer price inflation averaged 2.85 per cent over the January-July period, the ministry said.
The average oil price reached $83.9 a barrel by end-July 2026, up 15.7 per cent from a year earlier.
On the trade front, Oman recorded a trade balance of RO 4.68 billion at the end of June 2026, an increase of 51 per cent year on year — the steepest rise among the indicators published.
Non-oil Omani exports grew 11.4 per cent to RO 3.64 billion over the same period, while recorded merchandise imports rose 2.1 per cent to RO 8.57 billion.
The Economics Brief is issued periodically by the Ministry of Economy and published through its official channels.