MUSCAT: Oman’s economy expanded in the first half of 2025 as non-oil activity strengthened and natural gas output surged, while inflation stayed low and the country maintained a healthy trade surplus, according to the Ministry of Economy’s latest Economic Performance Bulletin (September 2025).
GDP at current prices rose 2.44% to RO 20.66 billion from RO 20.17 billion a year earlier. In real terms, output increased 2.27%, driven by a 4.14% rise in non-oil activities. Within this, agriculture, forestry and fishing grew 11.72%, services 4.39% and industrial activities 2.50%. Oil value added edged down 0.48% in line with a 0.61% dip in average crude output, while natural gas activities jumped 56.52%.
Prices remained contained. Average inflation was 0.82% in January–June 2025, compared with 0.36% in the same period of 2024 and remains within the authorities’ “safe” range.
Public finances softened as net oil and gas receipts fell, pulling total state revenue down 5.78% in the first half. External trade eased on weaker hydrocarbon exports but stayed in surplus. Total merchandise exports were RO 11.50 billion, down 9.5% year-on-year, as oil exports fell 16.08%.
Non-oil exports rose 9.1%.
Imports increased 5.1% to RO 8.41 billion, leaving a trade surplus of RO 3.09 billion. Foreign direct investment strengthened. By end-June, the FDI stock reached RO 30.28 billion, up 12.8% from a year earlier. Oil and gas extraction accounted for 80.7% of FDI, followed by manufacturing at 8.9% and financial intermediation at 4.5%.
By source country, the United Kingdom led with 51.9%, followed by the United States at 26.7% and Kuwait at 4.5%. Credit quality held firm during the period. Standard & Poor’s maintained Oman’s sovereign rating at BBB- with a stable outlook, citing the economy’s ability to preserve financial stability and meet obligations. The first-half profile points to steady, broad-based growth outside oil, low price pressures for households and continued investor confidence — key pillars of Oman Vision 2040.
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