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Oman’s economic recovery is gaining traction, supported by a revival of the hydrocarbon sector and the relaxation of Covid-19 restrictions. The Gulf country’s fiscal reforms and higher oil prices are expected to boost economic growth and generate a budget surplus in the medium term stated the IMF.
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Oman’s economy remains primarily reliant on revenue from hydrocarbons despite plans to diversify into sectors such as tourism, logistics, and renewables. The government has also undertaken structural reforms as part of an economic development plan. Still, progress on job creation has remained slow and there has been limited success in attracting foreign investment from beyond the immediate region.
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Gross domestic product growth rebounded to 3% last year, following a 3.2% contraction in 2020, helped by strong vaccination efforts and the relaxation of Covid-19 restrictions. At the same time, the economy is set to expand by 4.3% in 2022.
07 Oct 2022
Oman’s Economic Recovery
It's gains traction with expectations to grow at 4.3%
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Why it matters
Global rating agency Moody’s said Oman and Qatar are two GCC countries that are likely to see the most significant improvements in their fiscal and economic strength due to the current oil price boost. Oman recorded a budget surplus of 784 million Rials ($2B) in the first half of this year, as revenue grew on the back of higher oil and gas prices, according to government data released in August. The country also expects to bring in more than 9B rials a year from tourism by 2040 as it bids to diversify its economy away from oil.