Oman’s Economy Grows 2.3% in First Half of 2025, IMF Says

Oman’s Economy Grows 2.3% in First Half of 2025, IMF Says

Oman’s economy grew by 2.3% in the first half of 2025 compared to the same period last year, according to the International Monetary Fund (IMF). This is an improvement from the 1.6% growth recorded in 2024. The IMF said the main reason for this growth was strong performance in non-oil sectors.

Sectors such as construction, agriculture, fishing, tourism, and logistics showed solid expansion. These areas helped support the economy at a time when oil production remained limited due to ongoing OPEC+ output cuts.

Even though oil output was affected by production limits, Oman’s non-oil economy grew by a strong 3.5% in the first half of 2025. The IMF said this growth reflects strong local demand and positive effects from economic reforms introduced by the government.

Inflation in Oman remained low and well under control. Prices increased slightly to 0.9% between January and October 2025, compared to 0.6% in 2024. Most consumer prices stayed stable, helping protect household purchasing power.

The IMF also praised Oman’s careful management of public finances. Despite lower oil prices, the country managed to keep its budget in surplus. The overall fiscal surplus is estimated at 0.7% of GDP in 2025. The non-oil budget deficit also improved, falling by 2% of non-oil GDP. This was mainly due to better tax collection and controlled government spending.

Government debt stood at 36.1% of GDP in September 2025, which the IMF considers manageable. Oman’s current account recorded a small deficit of 1.1%, mainly because of weaker oil revenues.

Looking ahead, the IMF said Oman’s medium-term outlook remains positive. However, it warned of possible risks. These include global trade tensions, lower oil prices, slower global growth, or renewed regional political tensions. Such risks could affect economic growth, tourism, investment, and government finances.

In terms of financial stability, the IMF said Oman’s banking sector is strong. Banks are well-capitalized, liquid, profitable, and able to handle economic shocks. The IMF encouraged Oman to continue reforms in banking supervision, capital markets, financing for small businesses, and crisis management systems.

Oman’s Vision 2040 reform plan continues to support economic diversification. Key progress has been made in improving the business environment, strengthening tax systems, expanding digital and artificial intelligence projects, and increasing participation in the labor market.

The IMF also praised Oman’s consistent economic policies, including its fixed exchange rate, better public investment management, improved stabilization funds, and stronger debt management practices.

Earlier this month, Oman announced its 2026 budget. Total government spending is planned at $31.15 billion, while revenues are expected to reach $29.77 billion. This will result in a budget deficit of $1.38 billion, equal to about 1.3% of GDP. The planned deficit is 14.5% lower than last year.

The 2026 budget assumes an average oil price of $60 per barrel. Oman continues to rely heavily on oil revenues but is steadily working to reduce this dependence by developing non-oil sectors and strengthening its economy.

Published: 16th January 2026

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