In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
The Sultanate of Oman has experienced remarkable economic growth since 2004, primarily driven by the exploitation of its oil reserves. Despite a contraction due to the pandemic, Oman's economic recovery continued in 2022 (+4.3% of GDP) and 2023 (+1.2%), supported by favourable hydrocarbon revenues. According to official governmental figures, Oman’s GDP at constant prices rose 1.6% year-on-year in 2024 to OMR 37.7 billion (USD 98.1 billion), while GDP at current prices dropped 3.0% to OMR 40.7 billion, driven by weaker oil activity. Non-oil sectors grew 3.7%, led by manufacturing (+8.5%), wholesale and retail trade (+7.1%), and financial services (+3.5%). Oil-related activities declined 3.6% in real terms due to lower crude output and prices. According to the IMF, real GDP growth is expected to rebound to 2.6% in 2025, driven by recovering hydrocarbon output (+1.0%) as OPEC+ cuts ease, and stronger non-hydrocarbon growth (+3.4%) supported by construction, manufacturing, and services. Over the medium term, non-hydrocarbon activity is set to rise to 4.2% as major private investments are rolled out.
Oman has made significant progress in strengthening its fiscal and external positions while advancing the implementation of Oman Vision 2040. The Medium-Term Fiscal Plan (MTFP), initiated in 2020, has played a crucial role in achieving fiscal sustainability by diversifying revenue streams, controlling expenditures, and prudently managing hydrocarbon windfall savings. The overall budget recorded a surplus of OMR 520 million, compared to OMR 830 million in the same period of 2023. Government revenues rose 4% to OMR 10.2 billion by October 2024, driven by oil revenues (+11%), goods and services taxes (+18%), and stable non-oil receipts. Public spending increased 8% to OMR 9.68 billion, including higher allocations for development projects and sectoral subsidies. The 2025 budget aims to maintain fiscal discipline, further reducing the non-hydrocarbon primary deficit, while keeping spending on social safety nets largely unchanged compared to 2024. Government net financial assets are projected to turn positive in 2025 for the first time since 2017, rising to 6.8% of GDP by 2029, driven by asset accumulation and modest deleveraging as debt approaches 30% of GDP. Oman is assessed to be at low risk of sovereign debt stress, supported by strong financial buffers that mitigate liquidity and solvency risks. Meanwhile, inflation is estimated to have remained low at 0.8% in 2024, gradually converging to 2% over the medium term, according to the IMF.
The National Centre for Statistics and Information (NCSI) reported a continued decline in Oman’s unemployment rate, which fell to 3.6% by November 2024. The rate is much higher for women than for men (at 10.3% and 1.9%, respectively) and is not expected to see significant changes in 2025. In recent years, the government introduced initiatives to address the high share of expatriate workers, including bans on foreign worker visas, to promote the employment of Omani citizens. In 2024, the number of foreign workers declined by around 1% compared to 2023, while Omani workers increased by approximately 0.5%. Additionally, the authorities have implemented a new labour law focused on modernizing regulations and enhancing working conditions and flexibility in the labour market. Several initiatives have been launched to bolster the employment of nationals in the private sector, including the Wage Protection System and providing wage support to private sector employers for hiring nationals.
Main Indicators | 2023 (E) | 2024 (E) | 2025 (E) | 2026 (E) | 2027 (E) |
---|---|---|---|---|---|
GDP (billions USD) | 108.81 | 109.99 | 111.31 | 116.19 | 121.29 |
GDP (Constant Prices, Annual % Change) | 1.3 | 1.0 | 3.1 | 4.4 | 4.0 |
GDP per Capita (USD) | 21,063 | 20,631 | 20,230 | 20,462 | 20,699 |
General Government Gross Debt (in % of GDP) | 36.5 | 34.1 | 33.6 | 31.7 | 30.4 |
Inflation Rate (%) | 0.9 | 1.3 | 1.5 | 2.0 | 2.0 |
Current Account (billions USD) | 2.64 | 2.53 | 1.60 | 1.80 | 2.25 |
Current Account (in % of GDP) | 2.4 | 2.3 | 1.4 | 1.5 | 1.9 |
Source: IMF – World Economic Outlook Database , Latest available data
Note: (e) Estimated Data
Oman has a workforce of 2.69 million out of its 5 million population, of whom about 43% are expatriates. The share of expatriate workers has declined in recent years as Oman implemented a visa ban to boost the hiring of Omani citizens. Prior to the discovery of oil fields, Oman was virtually a subsistence economy that was entirely based on agriculture and fisheries. Nowadays, the latter contributes only marginally to GDP (2.3%) and employs 6.1% of the workforce (World Bank, latest data available). Agricultural production is mainly composed of dates, limes, and bananas, and owing to the lack of fertile land the country needs to import from international markets. In the agricultural season of 2022/2023, wheat production in the Sultanate of Oman saw a remarkable surge of 229%, totalling 7,119 tonnes. Additionally, the number of farmers increased by 22%, and the area dedicated to wheat cultivation expanded by 160% year-on-year to 6,359 acres, according to data from the Ministry of Agriculture. Moreover, the government has recently implemented various initiatives to support the sector, including the provision of fortified wheat seeds and modern harvesting equipment.
The industrial sector accounts for 54.3% of GDP and employs 40.2% of the workforce (World Bank). Its share has increased considerably in the last two decades (employment in industries was as low as 11% in 2000) as Oman increasingly uses enhanced oil recovery techniques and supports mining and manufacturing. The manufacturing sector alone is estimated to contribute to 9% of GDP (World Bank). However, the country is heavily dependent on oil and gas resources, which generate between 70% and 85% of government revenue on average, depending on fluctuations in commodity prices. According to the National Centre for Statistics and Information, Oman’s manufacturing sector grew over 10% in H1 2024 year-on-year, with output at fixed prices reaching OMR 1.868 billion, driven largely by oil refining, petrochemicals, and basic chemicals. The Public Authority for Special Economic Zones and Free Zones (OPAZ) has launched new industrial cities to expand industrial establishments, attract local investment, and boost the sector’s GDP contribution. By the end of 2024, industrial licences in special economic and free zones rose to 183, with industrial cities accounting for 125, or 68% of the total.
The services sector accounts for 46.4% of GDP and 53.7% of the workforce (down from 82.4% in 2000). Oil-related activities comprise a significant share of the services sector; however, logistics (maritime transport in particular) and financial activities are growing steadily. Tourism is one of the sectors being developed in order for the Sultanate to build a sustainable non-oil future, and the number of tourists has more than doubled in the last decade (3.5 million in 2019, according to the National Centre for Statistics and Information) and just over 3.5 million in the first eleven months of 2024. Banking activity in the region is predominantly controlled by six domestic banks and two Islamic banks. Additionally, there are nine foreign banks, although they typically operate only one branch each. The sector exhibits moderate concentration, with the largest bank, currently the sole domestically systemically important bank (DSIB), holding approximately 40% of total banking assets, as reported by the IMF.Overall, the banking sector remains robust, with profitability returning to pre-pandemic levels. Capital and liquidity buffers are strong, and asset quality remains solid. Banks' net foreign assets became positive by the end of 2023, marking the first time since 2014. In 2024, wholesale and retail trade grew by 7.1%, while financial services expanded by 3.5% (data NCSI).
Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
---|---|---|---|
Employment By Sector (in % of Total Employment) | 6.1 | 40.2 | 53.7 |
Value Added (in % of GDP) | 2.3 | 54.3 | 46.4 |
Value Added (Annual % Change) | 6.9 | 0.1 | 3.5 |
Source: World Bank - Latest available data.
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Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
Omani Rial (OMR) - Average Annual Exchange Rate For 1 MUR | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
Source: World Bank - Latest available data.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
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Oman's economy is highly open, with trade constituting approximately 101% of the country’s GDP, according to the World Bank. The Sultanate primarily exports hydrocarbons and petrochemicals but has been striving to diversify its economy in recent years, with an increasing share of industrial products in total exports. In 2023, exports of oil accounted for 57.6% of total exports, while liquefied natural gas recorded a share of 11.6%. Other exports included iron ores (2.9%) and fertilisers (2%). On the other hand, imports were led by petroleum oils (22.4%), motor cars (5.7%), iron ores and concentrates (3.6%), and telephone sets (2.3% - data Comtrade).
In 2023, the United Arab Emirates was the main export partner (6.4% of total exports), followed by Saudi Arabia (5.0%), India (3.8%), South Africa (2.4%), the United States (2.3%), and Egypt (1.7%); whereas imports came chiefly from the United Arab Emirates (26.3%), Saudi Arabia (12.4%), China (7.3%), India (7.2%), and Qatar (5.6% - data Comtrade). Oman benefits from high-quality port facilities that facilitate trade; however, slow procedures and rigid labour laws remain significant obstacles. Customs duties are relatively low, and there are few trade barriers in the country, with goods produced in Gulf Cooperation Council (GCC) member countries being duty-free if accompanied by a certificate of origin. The country has more than 105 agreements with countries around the world.
According to WTO data, Oman's goods exports totalled USD 62.7 billion in 2023, marking a 5% decrease from the previous year due to higher hydrocarbon prices, while imports declined at a faster pace (-5.6%), to USD 36.3 billion. Despite being a net service importer, the country maintains a structural trade surplus, although it is highly sensitive to fluctuations in hydrocarbon prices. According to preliminary data from the National Centre for Statistics and Information, merchandise exports grew 6.8% to OMR 24.2 billion in 2024, driven by an 18.4% rise in oil and gas exports to OMR 16.3 billion. However, non-oil exports fell 16.3%, with declines in minerals, chemicals, and live animals. Imports increased 12.1% to OMR 16.7 billion, led by higher demand for electrical machinery, mineral products, and transport equipment.
Foreign Trade Indicators | 2019 | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 23,507 | 28,507 | 30,995 | 38,573 | 36,382 |
Exports of Goods (million USD) | 38,724 | 33,479 | 44,591 | 66,063 | 62,736 |
Imports of Services (million USD) | 12,112 | 8,177 | 8,453 | 10,607 | n/a |
Exports of Services (million USD) | 4,898 | 2,237 | 1,733 | 2,787 | n/a |
Imports of Goods and Services (Annual % Change) | -3.4 | -8.9 | 13.3 | 19.6 | n/a |
Exports of Goods and Services (Annual % Change) | 1.9 | -14.6 | 12.2 | 16.5 | n/a |
Imports of Goods and Services (in % of GDP) | 37.0 | 44.8 | 42.6 | 41.4 | n/a |
Exports of Goods and Services (in % of GDP) | 49.5 | 47.1 | 49.4 | 59.2 | n/a |
Trade Balance (million USD) | 18,192 | 8,084 | 16,316 | 31,317 | 23,845 |
Trade Balance (Including Service) (million USD) | 10,978 | 1,864 | 9,357 | 22,801 | 17,337 |
Foreign Trade (in % of GDP) | 86.5 | 91.9 | 92.0 | 100.6 | n/a |
Source: WTO – World Trade Organisation ; World Bank , Latest Available Data
Main Customers (% of Exports) |
2023 |
---|---|
United Arab Emirates | 6.4% |
Saudi Arabia | 5.0% |
India | 3.8% |
South Africa | 2.4% |
United States | 2.3% |
See More Countries | 80.2% |
Main Suppliers (% of Imports) |
2023 |
---|---|
United Arab Emirates | 26.3% |
Saudi Arabia | 12.4% |
China | 7.3% |
India | 7.2% |
Qatar | 5.6% |
See More Countries | 41.3% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
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1.7 bn USD of services exported in 2021 | |
---|---|
35.86% | |
22.89% | |
20.88% | |
Personal travelPersonal travel | 15.66% |
OtherOther | 43.25% |
Business travelBusiness travel | 5.22% |
13.89% | |
3.35% | |
2.13% | |
1.00% |
8.5 bn USD of services imported in 2021 | |
---|---|
44.71% | |
15.21% | |
13.56% | |
10.92% | |
Personal travelPersonal travel | 9.60% |
OtherOther | 44.36% |
Business travelBusiness travel | 1.32% |
5.80% | |
5.57% | |
4.23% |
Source: United Nations Statistics Division, Latest Available Data
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House
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Latest Update: May 2025