MUSCAT : The report, approved by the IMF’s Executive Board, follows extensive consultations with over 20 government and private entities, including the Central Bank of Oman and the Ministry of Finance.

Oman’s real GDP growth reached 1.9% in the first half of 2024, up from 1.2% at the end of 2023. This growth was driven by a strong non-oil sector, which expanded by 3.8% in the first half of 2024, compared to 1.8% in 2023, reflecting significant improvements in industrial and service activities.

While oil activities experienced a decline due to OPEC+ production cuts, the IMF report projects non-oil sectors will remain the primary engine of economic growth, fueled by large-scale private sector projects.

Inflation in Oman has been effectively contained, dropping to 0.6% from 1% in 2023, thanks to lower transportation costs and stable food prices. Oman’s financial management was also lauded, with surpluses achieved in both the general finance balance and the current account balance, supported by favourable oil prices and rising non-oil exports.

Public debt declined to 35% in 2024, reinforcing the government’s commitment to fiscal discipline and boosting Oman’s sovereign credit rating to investment grade. The banking sector was commended for its resilience, with profitability returning to pre-pandemic levels, strong capital and liquidity levels, and high asset quality.

The report acknowledged Oman’s progress in economic diversification but cautioned about potential risks, including geopolitical tensions and the impact of lower oil prices from China’s economic slowdown. The IMF emphasized the need to sustain reforms and diversification efforts to maintain economic momentum.

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