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Oman’s economy is on an upward trajectory

Oman’s economic outlook remains positive, supported by comprehensive reforms and strategic efforts toward diversification

Published: Mon 20 Jan 2025, 1:47 PM

  • By
  • Muzaffar Rizvi

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Muttrah Corniche, Muscat, Oman, City

Muttrah Corniche, Muscat, Oman, City

Oman’s geographic location, positioned at the crossroads of the Arabian Peninsula, East Africa, and South Asia, offers a unique advantage for foreign investors seeking access to regional markets. Some of the major development projects such as the Duqm free trade zone and logistics hub present substantial investment potential and can attract global investors as Oman’s political stability and neutral foreign policy further enhance its appeal.

Oman’s economic outlook remains positive, supported by comprehensive reforms and strategic efforts toward diversification. Oman’s economy is on an upward trajectory, with real GDP projected to grow at 3.1% in 2025 and 4.4% in 2026. This growth is fuelled by the Oman Vision 2040 strategy, which focuses on economic diversification, attracting robust private investment, and expanding non-hydrocarbon sectors.

Additionally, non-oil sector growth is anticipated to be slower versus neighbouring countries like Saudi Arabia and the UAE, both of which are advancing more rapidly with structural reforms and economic diversification.

Oman does not have restrictions on capital flows or foreign exchange transactions. The Omani rial has been officially pegged to the US dollar at a rate of OMR 0.39 per USD since 1986.

LONG-TERM TRENDS (%)

Sources: The IMF, World Bank and Focuseconomics
20252026202720282029
Real GDP growth3.14.44.03.63.6
Hydrocarbon growth2.45.43.92.32.2
Non-hydrocarbon growth3.43.94.04.24.2
Inflation1.52.02.02.02.0
Population growth3.23.23.23.23.2

Numbers Matter

$21,482: Projected GDP per Capita for 2025

$21.3 Billion: Estimated central bank reserves in 2025

Strengths

> Fast-growing tourism sector

> Significant hydrocarbon reserves

Sectors to Watch

• Energy

• Tourism

• Infrastructure



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