The total estimated revenues for the Sultanate of Oman’s General State Budget for 2026, calculated based on an average oil price of $60 per barrel, amounted to approximately RO 11.447 billion. This reflects an increase of 2.4 per cent over the approved revenues for 2025. The government also launched its Eleventh Five-Year Development Plan (2026-2030), the second executive road map for “Oman Vision 2040,” targeting an economic growth rate of approximately 4 per cent at constant prices.
Total public expenditure was estimated at approximately RO 11.977 billion, rising by 1.5 per cent from the approved expenditure for 2025. Meanwhile, the estimated budget deficit for 2026 stands at approximately RO 530 million, a decrease of 14.5 per cent from the deficit approved in the 2025 budget, constituting 4.6 per cent of total revenues and 1.3 per cent of the Gross Domestic Product (GDP).
This was announced during a press conference held on Thursday at the Ministry of Finance to disclose details of the financial framework for the Eleventh Five-Year Development Plan (2026-2030) and the General State Budget for the fiscal year 2026, in addition to the preliminary results of the General State Budget for the fiscal year 2025.
Sultan bin Salim al Habsi, Minister of Finance, affirmed the continued growth of Oman’s economic activity. Statistical data indicates that the projected real GDP (at constant prices) by the end of 2025 is expected to reach approximately RO 39.2 billion, compared to RO 34.5 billion at the end of 2021, achieving a growth rate of 14 per cent since the start of the (Tenth) Plan. Furthermore, inflation rates have stabilised within target ranges, with the average inflation rate until November 2025 recorded at around 0.9 per cent. This outcome is attributed to government policies supporting petroleum products, electricity and water subsidies, and support for essential commodity prices.
In his address, the minister added that, due to the facilitation of the business environment, reduction of procedures, growing confidence in the Omani economy, alongside the dedicated efforts by specialists to attract investments, data indicates a growth in Foreign Direct Investment (FDI) in the Sultanate of Oman. By the third quarter of 2025, FDI reached RO 30.3 billion, marking an increase of approximately 71 per cent compared to the same period in 2021.
The minister stated that regarding government investments, Oman Investment Authority has contributed to economic growth by restructuring government companies and managing domestic and foreign investments. The Authority’s assets grew to approximately RO 21 billion by the end of 2025. Its investment portfolio has diversified across about 50 countries, forming economic and investment alliances that yield direct and indirect benefits, including the development of specialised Omani human resources and the transfer of knowledge and technology to the Sultanate of Oman for utilisation and localisation across multiple fields. Additionally, it has contributed to the General State Budget with over RO 4.4 billion during the Tenth Five-Year Plan.
He pointed out that the Future Fund Oman has directly contributed to attracting several investments, supporting private sector institutions, and accelerating the growth pace of startups and small and medium enterprises (SMEs) locally and abroad. The total investments approved by the Fund till the end of 2025 amounted to 164 projects with a financial commitment of RO 462 million, including RO 104 million in investments for startups and SMEs.
The Minister confirmed that Oman has witnessed a tangible improvement in its social, financial, and economic indicators. This improvement is driven by the recovery in global oil prices and government policies aimed at enhancing fiscal sustainability. The fiscal breakeven oil price has decreased from over $100 before the Tenth Five-Year Plan to approximately $68 per barrel of crude oil in 2025.
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