Non-oil exports rise 7.8%

MUSCAT, SEPT 13

Omani merchandise exports fell 7.3 per cent to RO 23.228 billion, while imports rose 2.8 per cent to RO 17.313 billion, according to the Central Bank of Oman's newly released Annual Report 2025.

The merchandise trade surplus narrowed by 27.9 per cent to RO 5.914 billion, a decline of RO 2.286 billion on the year. On a balance of payments basis, the goods surplus fell 22.4 per cent to RO 7.733 billion, the Sultanate of Oman’s apex bank stated.

Crude oil exports declined 15.2 per cent to RO 8.403 billion; refinery exports fell 12.6 per cent to RO 4.089 billion and LNG exports dropped 20.2 per cent to RO 2.017 billion. Crude export volumes were broadly unchanged at 306.7 million barrels, confirming that the fall was price-driven.

Non-hydrocarbon exports of Omani origin rose 7.8 per cent to RO 6.715 billion, lifted by machinery and mechanical appliances, which more than doubled with growth of 108.9 per cent to RO 567.6 million, chemical products, up 12.9 per cent, and base metals, up 9.4 per cent. The non-oil export price index rose 1.2 per cent over the year.

Re-exports grew 17.2 per cent to RO 2.002 billion, which the central bank attributed to Oman's expanding role in facilitating regional trade flows and the spillover benefits generated for transport, warehousing and customs services.

The UAE, Saudi Arabia and India remained the principal destinations for non-oil exports, taking 19.5 per cent, 15.9 per cent and 10.4 per cent respectively. Re-export activity stayed concentrated in the UAE at 36.1 per cent, followed by Iran at 18.2 per cent and Saudi Arabia at 9.5 per cent. The UAE was also Oman's largest source of imports at 24.1 per cent, ahead of China at 11.3 per cent and Kuwait at 7.7 per cent.

Recorded imports increased 2.5 per cent to RO 17.124 billion, driven by vehicles, aircraft and vessels, up 25.6 per cent, machinery, up 5.2 per cent, and vegetable products, up 5.8 per cent. Mineral product imports fell 9.1 per cent. The central bank said the composition of import growth suggested purchases were increasingly linked to expanding productive capacity rather than current consumption.

Trade openness, measured as exports plus imports relative to GDP, edged down to 96.2 per cent from 101.7 per cent in 2024.

The services deficit narrowed 1.2 per cent to RO 2.718 billion as receipts rose 3.5 per cent to RO 2.244 billion on stronger telecommunications, travel and insurance earnings, while payments increased 0.9 per cent to RO 4,962.1 million. The travel deficit widened 46.6 per cent to RO 37.6 million on higher outbound spending.

The primary income deficit narrowed 19.3 per cent, with investment income receipts rising 63.5 per cent to RO 564.1 million on stronger returns from direct and portfolio assets, while investment income payments fell 8.2 per cent. Secondary income outflows, mainly workers' remittances, rose 2.7 per cent to RO 3.665.5 billion; personal transfers by expatriate workers increased 3.1 per cent.

The financial account recorded a net inflow of RO 679.4 million, against a net outflow of RO 1.548.2 billion in 2024. Direct investment remained the largest source of financing, with net inflows of RO 2.651 billion, down from RO 3.601.4 billion. Portfolio investment posted a net outflow of RO 1.594 billion, while other investments swung to a net inflow of RO 32.8 million from an outflow of RO 3.301 billion a year earlier.

Reserve assets held by the CBO together with liquid foreign assets held by the Oman Investment Authority rose by RO 409.8 million during the year. The stock of CBO reserve assets reached RO 7.475 billion at end-2025, providing gross import cover of 5.2 months.

The stock of inward foreign direct investment reached approximately RO 31.4 billion by end-2025, according to National Centre for Statistics and Information data cited in the report, with oil and gas exploration accounting for 81 per cent. The United Kingdom remained the largest investor at RO 16.5 billion, or about 52 per cent of the total, followed by the United States at RO 8.4 billion and Kuwait at RO 1.4 billion.

Oman's net international investment liability position improved to RO 10.122.9 billion, or 24 per cent of GDP, from 26 per cent a year earlier, as foreign assets grew 9.4 per cent to RO 48.115 billion.