MUSCAT, NOV 1
Oman’s economy maintained its growth momentum in 2026, with real gross domestic product (GDP) expanding by 3.8 per cent to RO 19.54 billion at the end of the second quarter, supported by growth in both oil and non-oil activities, according to the Ministry of Economy’s October 2026 Economics Brief.
The latest indicators highlight continued progress in economic diversification, alongside stronger foreign investment and export performance, reflecting the Sultanate’s efforts to broaden its productive base and strengthen its competitiveness in regional and international markets.
Oil activities recorded growth of 9.7 per cent, reaching RO 6.45 billion, while non-oil activities increased by 1.3 per cent to RO 13.92 billion, demonstrating the continued contribution of non-oil sectors to the national economy.
Foreign direct investment (FDI) stock rose by 6.4 per cent to RO 32.21 billion by the end of the second quarter of 2026. However, FDI inflows during the quarter amounted to RO 1.93 billion, declining by 43.7 per cent compared with the corresponding period.
On the domestic front, average inflation stood at 2.95 per cent during the January-September period, indicating the importance of maintaining price stability amid changing global economic conditions.
Oil prices also supported economic activity, with the average price of Omani crude reaching $82.6 per barrel by the end of September, representing a 14.7 per cent increase.
Oman’s external trade performance recorded notable improvement, with the trade balance increasing by 64.1 per cent by the end of August 2026.
Non-oil exports rose by 10.5 per cent to RO 4.88 billion, reflecting continued efforts to expand the country's export base and strengthen the international presence of Omani products. Meanwhile, merchandise imports increased by 4.4 per cent to RO 11.86 billion.
The export performance highlights the growing importance of manufacturing and non-oil productive activities in supporting economic diversification and reducing reliance on hydrocarbon revenues.
The October indicators underline the importance of sustaining growth in non-oil sectors, attracting quality investments and strengthening the competitiveness of Omani industries.
Expanding industrial production, developing logistics infrastructure, promoting exports and improving the investment environment will remain essential to translating economic growth into sustainable opportunities.
The figures also reinforce the importance of advancing the objectives of Oman Vision 2040, particularly economic diversification, private-sector development and increased foreign investment.
Overall, the latest indicators point to continued economic expansion, supported by oil-sector performance, investment growth and improving trade activity. Sustaining this momentum will depend on strengthening non-oil sector productivity, broadening export markets and attracting investment into productive and high-value-added industries.
Oman Observer is now on the WhatsApp channel. Click here
