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Oman economy posts budget surplus, non-oil growth in 2024

MUSCAT: Oman recorded a fiscal surplus and moderate economic growth in 2024, driven by higher oil revenues and an expansion in non-oil activities, official data from the National Centre for Statistics and Information (NCSI) showed.

The Sultanate’s gross domestic product (GDP) at constant prices grew by 1.6 per cent year-on-year to RO 37.7 billion ($98.1 billion), while GDP at current prices fell by 3.0 per cent to RO 40.7 billion, largely due to lower oil activity.

Non-oil activities expanded by 3.7 per cent, led by a strong performance in manufacturing (+8.5 per cent), wholesale and retail trade (+7.1 per cent), and financial services (+3.5 per cent). Oil-related activities declined 3.6 per cent on a real basis, as crude output and prices softened.

Manufacturing value added rose on the back of refined petroleum products and basic chemicals, while the construction sector showed modest gains.

Average daily crude production in January and February 2025 stood at 987,000 barrels, down 1.4 per cent from the same period in 2024. However, the average price of Omani crude rose 1.0 per cent to $72.8 per barrel in February.

Natural gas production, including imports, rose 3.0 per cent in the first two months of 2025, driven by increased use in oil fields (+24.2 per cent).

Government revenues rose 4 per cent to RO 10.2 billion by end-October 2024, supported by oil revenues (+11 per cent), goods and services taxes (+18 per cent), and relatively stable non-oil receipts.

Public spending increased 8 per cent to RO 9.68 billion, including higher allocations for development projects and sectoral subsidies. The overall budget recorded a surplus of RO 520 million, compared to RO 830 million in the same period of 2023.

Merchandise exports rose 6.8 per cent to RO 24.2 billion in 2024, with oil and gas exports up 18.4 per cent to RO 16.3 billion. However, non-oil exports fell sharply by 16.3 per cent, with declines across minerals, chemicals, and live animals.

Imports climbed 12.1 per cent to RO 16.7 billion, reflecting higher demand for electrical machinery, mineral products, and transport equipment.

Foreign direct investment (FDI) reached RO 30.04 billion by the end of 2024, up 18 per cent from the previous year. The United Kingdom remained the top investor, contributing RO 15.3 billion (+22.9 per cent), followed by the United States (RO 7.67 billion) and China (RO 1.29 billion).

Broad money supply (M2) rose 8.1 per cent year-on-year to RO 24.9 billion in December 2024. Total banking credit increased 6.7 per cent to RO 32.5 billion, while the average interest rate on loans stood at 5.64 per cent. Private sector deposits grew 8.5 per cent, and the central bank’s foreign reserves increased by 5.0 per cent.

The inflation rate in February 2025 stood at 0.97 per cent, with the transport category posting the highest annual increase at 3.36 per cent. Food and non-alcoholic beverages registered a marginal decline.

The MSX 30 index dropped 2.6 per cent year-on-year to 4,435.9 points in February 2025. However, the total value of traded securities jumped 40.9 per cent to RO 309.9 million.

Omani investors were net buyers, while GCC and foreign investors recorded net outflows.