BUSINESS REPORTER
MUSCAT, NOV 11
Oman recorded a fiscal surplus of RO 107 million in the third quarter of 2026, despite an 11 per cent decline in government revenues from the preceding quarter, as a sharper reduction in expenditure helped strengthen the budget balance.
An analysis of Ministry of Finance figures shows that the quarterly surplus rose from RO 8 million in April–June to RO 107 million in July–September, lifting the cumulative fiscal balance to a surplus of RO 90 million for the first nine months of the year. Government revenues fell to RO 3.226 billion in the third quarter, compared with RO 3.617 billion in the second, while expenditure declined from RO 3.609 billion to RO 3.119 billion.
The figures were calculated by subtracting the ministry’s cumulative first-half results from its latest nine-month data. The improvement came alongside a sharp increase in gas revenues, which rose nearly 62 per cent quarter-on-quarter to RO 924 million, compared with RO 571 million in the preceding three months.
The stronger fiscal performance also coincided with a decline in public debt to approximately RO 14.1 billion at the end of September, from RO 14.7 billion a year earlier.
For the first nine months of 2026, total government revenues increased by 16 per cent to RO 9.828 billion, compared with RO 8.481 billion during the corresponding period of 2025. Public expenditure rose by 9 per cent to RO 9.738 billion, up from RO 8.914 billion a year earlier. The resulting RO 90 million surplus marked a RO 523 million improvement from the RO 433 million deficit recorded during the first nine months of 2025.
Net gas revenues were a major contributor to the improvement, increasing by 61 per cent year-on-year to RO 2.088 billion, from RO 1.296 billion. Net oil revenues rose by 7 per cent to RO 5.046 billion, compared with RO 4.710 billion a year earlier. The average realised oil price stood at $81 per barrel, while average daily production reached 1.102 million barrels. Combined oil and gas revenues amounted to RO 7.134 billion, accounting for nearly 73 per cent of total government income during the nine-month period.
Current revenues also increased by 7 per cent to RO 2.614 billion, compared with RO 2.449 billion in the corresponding period of 2025. On the expenditure side, current spending rose by RO 394 million to RO 6.621 billion, while development expenditure reached RO 1.224 billion, representing 94 per cent of the RO 1.3 billion allocated for the year.
Contributions and other expenditure increased by 9 per cent to RO 1.723 billion, including RO 486 million for social protection, RO 441 million for electricity subsidies and RO 280 million for petroleum product subsidies. The government also transferred RO 225 million to a provision for debt repayment, while expenditure pending settlement stood at RO 170 million. Payments to private-sector companies exceeded RO 1.434 billion during the first nine months.
The Ministry of Finance said it remained committed to settling fully documented claims within an average of five working days. The quarterly figures indicate that the improvement in Oman’s fiscal balance was driven by expenditure falling faster than overall revenue, alongside stronger gas receipts.
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