Muscat – This figure has been released in the Central Bank of Oman’s 2024 Macroeconomic Stability Report, which provides a detailed analysis of the country’s economic performance and stability, considering global risks and vulnerabilities.

Despite fluctuations in oil prices and global economic pressures, the report highlights continued growth in real GDP and improvements in economic activity. “Real GDP grew by approximately 1.9 percent during the first half of 2024 compared to the same period last year. This growth is largely attributed to a 3.6 percent increase in non-oil activities. The contribution of oil-related activities remains significant, accounting for about 32.5 percent of total real GDP in the first half of 2024. This indicates the high level of vulnerability of the Omani economy to external shocks, particularly fluctuations in energy prices and global oil supply and demand dynamics.” states the report, which has been described as a key communication tool alongside other reports the bank regularly publishes.

The Central Bank of Oman’s report also provides a medium-term optimistic outlook, forecasting continued recovery and growth aligned with national priorities and emerging economic opportunities. Public finance remains a key focus, with the government’s ongoing fiscal reforms, including efforts to rationalize expenditure, reduce public debt, and diversify revenue sources. These reforms, coupled with the introduction of the Social Protection Program, have helped ensure fiscal sustainability while addressing social care needs.

Despite a drop in the average price of Omani crude oil in 2024 compared to the previous year, Oman’s diversification initiatives have helped mitigate the risks linked to volatile oil prices. This is further reinforced by credit rating agencies, which have improved Oman’s sovereign credit rating, recognizing the country’s proactive fiscal policies and economic reforms.

On the monetary stability front, the report highlights those total foreign reserves held by the Central Bank of Oman remained stable, amounting to approximately RO 7.5 billion. This reserve level is sufficient to cover about 6.6 months of merchandise imports as of September 2024 as compared to the international benchmark of 3 months. The report emphasizes the continued importance of maintaining adequate foreign currency reserves to ensure the stability of the exchange rate system.