MUSCAT: The Sultanate of Oman welcomes the anniversary of January 11, marking the day His Majesty Sultan Haitham bin Tarik assumed power in the country, while achieving financial and economic accomplishments that reflect the resolve and sublime vision to establish Oman as an attractive investment environment supported by clear and favorable legislation, through plans, programs, and efforts from all parties to realise these achievements.
Furthermore, the launch of the Eleventh Five-Year Development Plan (2026-2030) at the beginning of this year, representing a bridge for transitioning from the recovery phase to the stage of economic growth and expansion, supported by a clear vision and integrated legislative and regulatory foundations, confirms that the Sultanate of Oman is on a promising path towards a prosperous and sustainable economic future under the leadership of His Majesty the Sultan.
Non-oil sectors in the Sultanate of Oman continue to enhance their role in supporting economic growth and achieving financial sustainability, registering a gradual increase in their contribution to the Gross Domestic Product, reflecting the effectiveness of economic diversification policies and progress towards the targets of "Oman Vision 2040." The contribution of non-oil sectors to the Gross Domestic Product at constant prices rose to 73.3% by the end of the third quarter of 2025, compared to 72.5% in 2024.
The Sultanate of Oman also maintained the 58th position globally in the 2025 Economic Freedom Index, thanks to reforms that enhanced the business environment and elevated regulatory efficiency.
The Gross Domestic Product of Oman at constant prices recorded a growth of 2.2% by the end of the third quarter of 2025, reaching approximately RO 28.693 billion compared to the end of the corresponding quarter of 2024. This is primarily attributed to a 3.4% increase in the value-added of non-oil activities, recording around RO 21.45 billion. Meanwhile, the value-added of oil activities recorded a slight growth of 0.3%, amounting to RO 8.946 billion.
Furthermore, the Gross Domestic Product at current prices increased by 1.5% by the end of the third quarter of 2025, recording RO 31.071 billion compared to the end of the corresponding quarter of 2024. This is mainly due to a 3.5% increase in the value-added of non-oil activities, recording around RO 21.409 billion, versus a 2.2% decrease in the value-added of oil activities, recording approximately RO 10.645 billion.
The trade balance of Oman recorded a surplus of RO 4.690 billion by the end of October 2025. The total value of merchandise exports reached RO 19.359 billion, while the total recorded merchandise imports amounted to RO 14.669 billion.
Meanwhile, the volume of foreign direct investment in the Sultanate of Oman by the end of the second quarter of 2025 recorded a growth rate of 12.8%, reaching approximately RO 30.279 billion.
The inflation rate in Oman stabilized at a moderate and significantly low level compared to the actual economic growth rate achieved during the Tenth Five-Year Development Plan (2021-2025). The average inflation rate reached about 0.9% until November 2025, which is a significant achievement demonstrating the Omani economy's ability to continue growing and overcoming challenges while implementing the targets of "Oman Vision 2040" and the economic diversification strategy to elevate growth rates and support the performance of various economic sectors.
Muscat Stock Exchange witnessed distinguished performance during 2025, reflecting the strength of the national economy and the success of government programs aimed at enhancing market efficiency and investment attractiveness. The market value increased by about 60% from its 2020 indicators to exceed RO 32.2 billion, while the trading value during 2025 increased by 1013% compared to 2020, surpassing RO 5 billion, driven by initiatives that contributed to enhancing liquidity and confidence among local and international investors. These included launching the Capital Market Development Program, inaugurating the Alternative Investment Market, and improving the legislative environment to accommodate more companies and provide diverse opportunities for investors.
Standard & Poor's classified Oman's credit rating at investment grade (BBB-) with a "stable" outlook, according to two reports it issued in April and September 2025.
Meanwhile, Moody's elevated Oman's credit rating in July 2025 from (Ba1) to investment grade (Baa3) with a "stable" outlook. Similarly, Fitch elevated Oman's credit rating in December 2025 from "BB+" to investment grade (BBB-) with a "stable" outlook.
In the field of artificial intelligence, several government entities and private institutions implemented a package of pilot projects related to AI applications in a number of vital sectors, including health, judiciary, tenders, cybersecurity, open data, and education, within the targets of the National Programme for Artificial Intelligence and Advanced Technologies. These projects embody Oman's commitment to adopting artificial intelligence as a strategic tool to improve service quality, enhance government performance efficiency, and strengthen partnerships with the private sector, supporting the achievement of "Oman Vision 2040" targets and consolidating Oman's position as an attractive environment for innovation and advanced technologies.
The tourism sector in Oman witnessed noticeable growth during 2025, supported by increased investments and international promotion efforts. Investments in the sector amounted to approximately RO 2.59 billion as part of the Tenth Five-Year Plan (2021-2025). The total revenues of hotel establishments reached RO 293.4 million by the end of September 2025.
The direct value-added of the tourism sector reached RO 873 million, and the total tourism output reached RO 1.99 billion by the end of September 2025, representing 2.7% of Oman's Gross Domestic Product. The total number of visitors arriving in Oman reached 2.83 million by the end of the third quarter of 2025, reflecting the growing activity of domestic and seasonal tourism thanks to local events and festivals.
As for the mining sector, it witnessed positive developments and growth features during 2025, represented by offering new investment opportunities in 4 concession mining areas with promising potential for metallic and non-metallic minerals, and signing new exploration and mining agreements as part of a comprehensive strategy to develop the sector and increase its contribution to the Gross Domestic Product.
In recent years, Oman has witnessed notable growth in increasing reliance on renewable energy through the inauguration of a number of projects in the fields of solar and wind energy, including: Dhofar 1 Wind Power Plant, Ibri 2 Solar Power Plant, and Manah 1 and Manah 2 Solar Power Plants. This aims to support national energy transition plans and raise the contribution of renewable energy to electricity production, with the share of renewable energy in electricity production reaching 11.5%.
Renewable energy projects contribute to supporting economic diversification plans and enhancing sustainable energy, which Oman adopts by diversifying its sources, preserving the environment, and reducing harmful emissions. There is an emphasis on developing renewable energy projects across various governorates and enhancing their contributions to 30% of energy production by 2030.
Under the wise leadership and sound vision of His Majesty, Oman steadily advances towards achieving ambitions, overcoming challenges, and charting a promising path for sustainable development, turning aspirations into tangible achievements. The harvest of implementing the Tenth Five-Year Development Plan (2021-2025) was fruitful in achieving the national priorities included in the plan, linked to the pillars of "Oman Vision 2040" and sustainability and diversification targets. - ONA
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