Preliminary data from Oman’s Ministry of Finance showed that the country’s revenues in 2024 reached approximately 12.7 billion Omani rials ($33 billion), marking a 15% increase compared to initial budget forecasts.
Spending was reduced to 11.65 billion rials ($30 billion), a 4% decrease from planned expenditure. This resulted in an actual surplus of 540 million rials, instead of the anticipated deficit of 640 million rials.
The improved financial performance was largely due to a 37% rise in the average price of oil, which reached $82 per barrel, compared to the initially projected $60. However, Oman’s average daily oil production saw a slight decline, dropping to 1.001 million barrels from 1.031 million barrels.
The additional revenue of 468 million rials was allocated to social spending and economic growth initiatives. This included funding for fuel subsidies, electricity, water, sanitation, and waste management. Health and education sectors received increased budgets to support service expansion, while additional funds were provided for social security beneficiaries, low-income families, and debt forgiveness for small and medium-sized enterprises.
Oman’s public debt declined by 5.3% in 2024, falling from 15.2 billion rials at the start of the year to 14.4 billion rials. Debt now represents 34% of GDP, down from 36.5%.
In November, the International Monetary Fund (IMF) reported significant economic expansion in Oman, with growth accelerating from 1.2% in 2023 to 1.9% in the first half of 2024. This growth was driven by non-oil sectors such as construction, manufacturing, and services, despite reduced oil production. The IMF highlighted Oman’s progress in implementing Vision 2040 reforms, which included strengthening social safety nets, improving labor market flexibility, and enhancing the business environment. The country’s sovereign credit rating was upgraded to investment grade, reflecting its improved economic fundamentals.
While growth in 2024 is projected at 1.2%, further recovery is expected in 2025 as hydrocarbon production increases alongside non-oil sector expansion. Challenges such as oil price volatility and geopolitical risks remain, but Oman continues its efforts to diversify the economy and attract investments.
Sultan Haitham bin Tariq approved Oman’s 2025 budget, which anticipates a deficit of 620 million rials ($1.6 billion). Revenues are estimated at 11.18 billion rials ($29 billion), a 1.5% increase from 2024, while spending is projected at 11.8 billion rials ($30.65 billion), a 1.3% rise.
Finance Minister Sultan al-Habsi emphasized that global economic uncertainties, including trade tensions and weaker oil demand, present challenges for oil-exporting nations. The 2025 budget focuses on maintaining fiscal and social stability, allocating significant funds to education, health, housing, and social welfare. Subsidies for social protection and electricity support are also prioritized.
Development spending across provinces reached 147 million rials by the end of 2024, aligning with efforts to promote decentralized growth. Oman is also undertaking financial reforms, including periodic reviews of government service fees, simplifying administrative processes, and modernizing financial regulations to improve fiscal management.
