Oman Plans $1.4 Billion Deficit in 2026 Budget
Oman is planning a budget deficit of about $1.4 billion for the year 2026, according to a recent report. The government expects total spending to reach $31.15 billion, while revenues are projected at $29.77 billion. This difference will result in a deficit of around $1.38 billion.
The government’s planned spending for 2026 is 1.5% higher than last year. At the same time, expected revenues are 2.4% higher compared to the 2025 budget. Reuters reported this information, citing Oman’s state-run news agency, ONA. The deficit is equal to around 1.3% of Oman’s gross domestic product (GDP). It also shows a 14.5% improvement compared to last year, meaning the deficit has reduced.
Oman officially approved the 2026 budget through a Royal Decree issued on Thursday.
The country depends heavily on oil income to fund government spending. For the 2026 budget, Oman based its estimates on an average oil price of $60 per barrel. Oman is a member of OPEC+ and is one of the smaller oil producers in the region.
To reduce its reliance on oil, Oman is continuing efforts to diversify its economy. In recent years, the government has increased investments in tourism and hospitality projects. These sectors are seen as key sources of income that do not depend on oil and gas.
Public debt is expected to rise to about $38.02 billion by the end of 2026. This would be equal to 36% of GDP, according to ONA.
Job Creation Plans
Along with the budget, Oman has announced strong plans to create jobs. Under its 11th five-year development plan (2026–2030), the country aims to create 300,000 jobs over five years. This means an average of 60,000 jobs per year.
This target is higher than the previous plan. During the 10th five-year plan, which ended in 2025, Oman created 175,000 jobs.
In 2025 alone, Oman created 51,482 jobs, which is a 114% increase compared to the year before. This number was also much higher than the annual target of 45,000 jobs.
The strong performance was credited to joint efforts between government bodies and the private sector. These efforts included replacing foreign workers with local workers, offering training linked to jobs, and improving skills for job seekers.
The Ministry of Labour said its programs focused on workforce replacement, job-related training, and skill development. The ministry also worked closely with private companies to create long-term and sustainable jobs.
In 2025, the government sector provided 11,206 jobs, exceeding its target of 10,000. Meanwhile, the private sector created 25,207 jobs, beating its target of 24,000.
These results show Oman’s continued focus on economic reform, job creation, and reducing dependence on oil revenues.
Published: 2nd January 2026
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