MUSCAT: Oman’s non-oil exports declined by 16 per cent in 2024, even as refined oil shipments surged, underscoring the economy’s continued dependence on hydrocarbons, according to a new report by Enjaz Consultancy.
The May 2025 edition of Enjaz’s Economic Analysis Series, authored by well-known Omani business personality Dr Mahmood Sakhi al Balushi, reveals that crude oil still accounts for 45 per cent of total exports. Refined oil exports, fuelled by the Duqm refinery, doubled to reach 17 per cent of export volume, partially offsetting a sharp downturn in non-oil sectors.
“Excluding crude, Oman’s trade balance continues to register deficits despite oil price gains,” said Dr Al Balushi.
Non-oil exports declined for a second consecutive year—down 1.1 per cent in 2023 and 16.3 per cent in 2024—while overall imports rose by 12 per cent, adding pressure to the current account.
The UAE remained Oman’s largest trading partner, with both exports and re-exports rising over 10 per cent in 2024. Imports from the UAE also topped RO 4 billion, according to the report.
Trade with Kuwait strengthened, reflecting increased demand for minerals and equipment linked to Duqm’s industrial expansion. Imports and re-exports surged, making Kuwait one of Oman’s fastest-growing trade routes.
Meanwhile, trade with Saudi Arabia weakened, with exports and imports down 19 per cent and 30 per cent respectively. New coastal infrastructure, including Al Suwaiq Port, helped boost re-export activity with Iran.
Despite spikes in energy-linked exports, Oman’s trade deficit (excluding oil and gas) has remained consistent over the past decade. The report shows non-oil exports now account for just 28 per cent of total export value—highlighting a key vulnerability as the country implements Vision 2040 economic reforms.
Imports surpassed RO 6.5 billion last year, with the top sources being the UAE, China, and a wide “Others” category that includes emerging markets.
The report calls for intensified export diversification to address structural imbalances. Analysts say Duqm’s refining and logistics capacity could anchor future non-oil growth if matched by industrial policy and foreign investment.
“Refining gains are clear, but sustainable trade surpluses require broader value-added exports,” Dr Al Balushi noted.
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