MUSCAT, MARCH 30
Oman’s economy posted steady gains at the end of 2025, with non-oil sectors emerging as the principal driver of growth, reinforcing the Sultanate of Oman’s diversification agenda despite softer oil prices and mixed external indicators.
Real gross domestic product (GDP) stood at RO 39.30 billion, reflecting an overall expansion of 2.4 per cent at constant prices by the end of the fourth quarter of 2025. The performance was largely underpinned by stronger activity outside the hydrocarbons sector.
According to a monthly bulletin by the Ministry of Economy, non-petroleum activities continued to outpace oil-driven growth, highlighting structural progress in broadening the economic base.
Non-oil GDP rose to RO 28.70 billion, marking a robust increase of 3.1 per cent, compared with petroleum activities, which grew at a slower pace of 1.1 per cent to reach RO 12.02 billion. The data reflects sustained expansion across sectors such as manufacturing, logistics, tourism and services.
Inflation remained contained at an average of 1.69 per cent during January–February 2025/2026, indicating stable price levels and supporting household consumption and business planning.
Foreign direct investment (FDI) stocks increased to RO 31.38 billion by the end of Q4 2025, up 8.1 per cent year-on-year, signalling continued investor confidence in Oman’s long-term economic trajectory.
However, FDI inflows declined sharply by 33.7 per cent to RO 2.36 billion, suggesting short-term caution amidst global economic uncertainty and tighter financial conditions.
Oil market trends weighed on the broader outlook, with the average crude price falling by 13.1 per cent to $63.3 per barrel by the end of February 2026, reflecting softer global demand and increased supply.
Foreign trade indicators presented a mixed picture. The trade balance recorded a surplus of RO 255.9 million at the end of January 2026, although this marked a significant contraction of 51.5 per cent compared to the same period last year.
Imports rose by 10.9 per cent to RO 1.58 billion, driven by higher domestic demand and ongoing project activity, while non-oil Omani exports increased by 15.3 per cent to RO 613 million, underscoring improving export diversification.
Overall, the data points to a resilient economic trajectory led by non-oil growth, although external pressures — including weaker oil prices and reduced investment inflows — continue to pose challenges. Sustaining momentum in non-oil sectors will remain central to Oman’s medium-term growth outlook.
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