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Oman's Budget Records Surplus of Almost $1Bn

Oman's state budget recorded a surplus of $928 million at the end of the first quarter of 2022. (Asharq Al-Awsat)
Oman's state budget recorded a surplus of $928 million at the end of the first quarter of 2022. (Asharq Al-Awsat)
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Oman's Budget Records Surplus of Almost $1Bn

Oman's state budget recorded a surplus of $928 million at the end of the first quarter of 2022. (Asharq Al-Awsat)
Oman's state budget recorded a surplus of $928 million at the end of the first quarter of 2022. (Asharq Al-Awsat)

Oman's state budget recorded a surplus of $928 million at the end of the first quarter of 2022.

The Finance Ministry announced the surplus would be used to accelerate economic recovery, enhance development expenditure, and reduce the risks of the country's public debt portfolio.

As of the end-first quarter of 2022, public revenue amounted to OMR3.025 billion, up by 66.3 percent compared to the same quarter in 2021, according to the monthly bulletin of the Ministry of Finance.

The monthly bulletin issued by the Ministry of Finance indicated that, until the end of the first quarter of 2022, the state's public revenues increased by 66.3 percent, to a record $8.45 billion compared to $4.3 billion revenues collected in the same period in 2021.

The ministry said net oil revenue was $4 billion at the end of the first quarter, up by 70.2 percent from the same period a year earlier.

The increased oil revenues were driven by a hike in average oil prices, which rose to $78 a barrel, as well as increased oil production at the rate of 1.025 million barrels a day, compared to the average oil price of $45 a barrel for the same period in 2021.

The data showed that Oman also recorded a more than doubling of gas revenue in the first quarter.

Gas revenues rose 124.4 percent, compared to the same period in 2021, due to the rise in gas prices and production increases.

Current revenues increased by 23.7 percent, compared to the same period in 2021, due to the inflows from the value-added tax, excise tax, and improved collection of government revenues.

Total public spending until the end of the first quarter of 2022 amounted to about $6.7 billion, recording a 3.8 percent increase over actual expenditures for the same period in 2021.

The development expenditure of civil ministries and allied organizations rose 130.8 percent during the first quarter of 2022 to reach $390 million, compared to the same period in 2021. This amount represents 13.6 percent of the development budget of $2.86 billion allocated in 2022.

Contributions and other expenses accounted for another $465 million, including $130 million for public debt service.

By the end of the first quarter of 2022, the Ministry of Finance paid the private sector $380 million, reflecting the payment vouchers received through the e-financial system, those that have completed the documentary cycle.

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Economists Warn of Global Trade Risks from Israel-Iran Conflict

Rescue workers at site hit by Israeli airstrikes in Tehran (Reuters)
Rescue workers at site hit by Israeli airstrikes in Tehran (Reuters)
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Economists Warn of Global Trade Risks from Israel-Iran Conflict

Rescue workers at site hit by Israeli airstrikes in Tehran (Reuters)
Rescue workers at site hit by Israeli airstrikes in Tehran (Reuters)

Economic experts have warned that a protracted conflict between Israel and Iran could have far-reaching repercussions on the global economy, driving up energy prices and disrupting key sectors including aviation, insurance, trade, and maritime navigation.

 

Speaking to Asharq Al-Awsat, Saudi Shura Council member Fadl Al-Buainain said the ongoing military confrontation is already impacting global energy markets, with oil prices spiking to multi-month highs in the immediate aftermath of the outbreak.

 

He warned that continued Iranian threats to close the strategic Strait of Hormuz could further fuel the surge in energy prices. “Such an act would be hostile, not only to Gulf nations but also to global consumers, compounding the challenges already facing the world economy”, Al-Buainain said.

 

He stressed that the energy sector is particularly vulnerable to military escalations. “Any disruption to oil production or exports from major producers could send oil and gas prices skyrocketing, with direct consequences for global economic stability”, he said.

 

While current military actions have had limited impact on output and exports, Al-Buainain cautioned that any direct strikes on energy infrastructure could push oil prices above $100 per barrel, depending on how badly global supply chains are hit.

 

The conflict has already disrupted international flight routes and increased operational costs for airlines, he said, while surging risk premiums have driven up insurance costs across the region. Maritime trade and shipping lanes are also at risk of direct disruption.

 

Al-Buainain noted that the fallout will vary across the region. He pointed out that Saudi Arabia, thanks to its strategic location and Red Sea ports, is better positioned to maintain the flow of trade. The kingdom also benefits from pipelines that transport oil from the east to the west, partially shielding its exports from Gulf disruptions.

 

He described energy as the “real engine” of the global economy and said it, along with foreign trade, will bear the brunt of the economic impact. "But the human cost and developmental setbacks caused by war are far worse”, he added.

 

Al-Buainain warned that prospects for a swift diplomatic resolution are diminishing. “Starting wars is easier than ending them,” he said, adding that an Iranian move to shut down Hormuz, while difficult in practice, could spark a direct confrontation with global powers, particularly the United States. “If American interests are attacked, Washington could be drawn into the conflict, which risks expanding beyond control”.

 

Khaled Ramadan, head of the Cairo-based International Center for Strategic Studies, said Israel’s strikes on Iranian energy infrastructure, including the Abadan refinery, which has a capacity of 700,000 barrels per day, could severely reduce oil and gas supplies if the conflict drags on.

 

He told Asharq Al-Awsat that Brent crude had already risen 8–13% following the escalation, crossing $78 per barrel. “Should the Strait of Hormuz be closed, we could see oil prices surge to record levels”, he warned.

 

Ramadan said the conflict could also disrupt global supply chains, especially through Hormuz, affecting non-oil goods such as electronics and food. Shipping and insurance costs would rise, leading to higher consumer prices and a slowdown in global trade.

 

Food staples such as wheat and corn, along with petrochemicals, garments, electronics, auto parts, and pharmaceuticals are all likely to see price increases, he said, citing higher energy and transport costs as well as declining market confidence.

 

Ramadan added that the economic fallout includes rising inflation, weakening currencies, and a drop in investment — particularly in tourism and tech.

 

“The Iranian rial and Israeli shekel have already hit their lowest levels this year,” he noted, adding that the war could reshape global energy alliances, with Europe increasingly seeking alternative suppliers.