Oman Economic Outlook
An oil-dependent economy with reform ambitions:
Oman’s economy is heavily reliant on oil and gas, which account for over 70% of government revenue. However, compared to its Gulf neighbors, Oman has lower oil reserves, making economic diversification a pressing priority. The country has launched the Vision 2040 initiative to reduce dependence on hydrocarbons and develop industries such as tourism, logistics, and manufacturing.
Fiscal challenges and debt concerns:Oman has faced rising public debt in recent years due to lower oil revenues and high government spending. To address fiscal imbalances, the government has introduced measures such as value-added tax (VAT) and subsidy reductions. While these steps have helped improve finances, they have also led to higher living costs, prompting public discontent.
Investment in tourism and infrastructure:The government has been promoting tourism as a key growth driver, leveraging Oman’s cultural heritage, scenic coastline, and ecotourism potential. Infrastructure projects, including new ports and industrial zones, aim to position Oman as a logistics hub linking Asia, Africa, and the Middle East. However, competition from regional economic powerhouses like the UAE and Saudi Arabia poses challenges.
Oman’s economic outlook:Growth prospects for Oman remain moderate. Managing public debt, improving job creation for Omani citizens, and enhancing the private sector’s role will be critical to ensuring sustainable economic development. Continued structural reforms will determine whether Oman can successfully transition to a more diversified economy.
Oman's Macroeconomic Analysis:
Nominal GDP of USD 105.8 billion in 2023.
Nominal GDP of USD 105.8 billion in 2023.
Nominal GDP of USD 105.8 billion in 2023.
GDP per capita of USD 20,472 compared to the global average of USD 10,589.
GDP per capita of USD 20,472 compared to the global average of USD 10,589.
GDP per capita of USD 20,472 compared to the global average of USD 10,589.
Average real GDP growth of 2.3% over the last decade.
Average real GDP growth of 2.3% over the last decade.
Average real GDP growth of 2.3% over the last decade.
Sector Analysis
In 2022, services accounted for 44.5% of overall GDP, manufacturing 10.5%, other industrial activity 43.2%, and agriculture 1.8%. Looking at GDP by expenditure, private consumption accounted for 44.3% of GDP in 2021, government consumption 22.1%, fixed investment 22.4%, and net exports 11.2%.International trade
In 2022, manufactured products made up 16.4% of total merchandise exports, mineral fuels 74.0%, food 3.0%, ores and metals 6.5% and agricultural raw materials 0.0%, with other categories accounting for 0.1% of the total. In the same period, manufactured products made up 51.3% of total merchandise imports, mineral fuels 24.2%, food 14.6%, ores and metals 7.3% and agricultural raw materials 0.5%, with other goods accounting for 2.1% of the total. Total exports were worth USD 59 billion in 2023, while total imports were USD 35.20 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 2.3% in the decade to 2023. To read more about GDP growth in Oman, go to our dedicated page.
Fiscal policy
Oman's fiscal deficit averaged 7.2% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 2.8% in the decade to 2023. For more information on Oman's unemployment click here.
Inflation
Inflation averaged 1.0% in the decade to 2024. Go to our Oman inflation page for extra insight.
Monetary Policy
Oman's monetary policy rate ended 2024 at 5.00%, up from 1.00% a decade earlier. See our Oman monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the rial stayed on the same level vs the U.S. dollar. For more info on the rial, click here.
Economic situation in Oman
The economy grew 2.5% in annual terms in Q1, above last year’s reading and the 10-year average. The decline in oil production slowed to a crawl due to a more favorable base of comparison, while gas production jumped 10%. Moreover, the non-energy sector saw rapid growth, despite refinery activity losing steam now that the Duqm plant is fully online. Within the non-energy sector, mining, manufacturing, construction, finance and hospitality were particularly strong performers. In the second quarter, the unwinding of OPEC+ production cuts will have boosted oil production, while government diversification efforts will have continued to stoke non-oil activity. In other news, a Chinese firm recently announced plans for a USD 1.1 billion battery plant in Oman. The move is the latest in a string of Chinese investments in clean energy and bodes well for economic diversification.Oman Economic Forecasts
Projections out to 2034.46 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 19 expert analysts.
Want to get insight on the economic outlook for Oman in the coming years? FocusEconomics collects projections out to 2034 on 46 economic indicators for Oman from a panel of 19 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Oman economy. To download a sample report on the Oman's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.