Muscat: A string of financial and development indicators now point to a more diversified, investment-ready economy aligned with the ambitions of Oman Vision 2040.

The launch of the Eleventh Five-Year Development Plan (2026–2030) at the start of this year signals a transition from recovery to expansion, underpinned by clearer legislation and integrated regulatory frameworks. It builds on gains made during the Tenth Plan (2021–2025), which helped stabilise public finances, strengthen non-oil sectors and restore investor confidence.

Non-oil activities continue to drive growth, lifting their contribution to GDP at constant prices to 73.3 per cent by the end of the third quarter of 2025, up from 72.5 per cent a year earlier. GDP at constant prices grew by 2.2 per cent to RO 28.69 billion, supported by a 3.4 per cent rise in non-oil value added, while oil activities recorded marginal growth. At current prices, GDP reached RO 31.07 billion, reflecting resilient domestic demand despite lower oil value added.

Oman also retained its 58th global ranking in the 2025 Index of Economic Freedom, while inflation remained contained at an average of about 0.9 per cent until November 2025—well below regional averages. The trade balance posted a surplus of RO 4.69 billion by end-October, supported by merchandise exports of RO 19.36 billion. Foreign direct investment rose 12.8 per cent by the second quarter of 2025 to around RO 30.28 billion, underscoring renewed international interest.

Capital markets mirrored this momentum. The Muscat Stock Exchange saw market capitalisation climb to over RO 32.2 billion, around 60 per cent higher than in 2020, while trading value surged more than tenfold, aided by reforms such as the Capital Market Development Programme and the Promising Companies Market.

Creditworthiness also improved markedly. In 2025, all three major agencies, Standard & Poor’s, Moody’s and Fitch, raised Oman’s sovereign rating to investment grade, citing stronger fiscal discipline, lower public debt and a more robust policy framework.

Beyond traditional sectors, Oman has accelerated its push into technology and sustainability. Pilot artificial intelligence projects are under way across health, justice, cybersecurity, education and public services, aligned with the National Programme for Artificial Intelligence and Advanced Technologies. The digital economy’s contribution to GDP is nearing 3 per cent and is targeted to reach 10 per cent by 2040. The country has also advanced in global digital indices, ranking first worldwide in cybersecurity readiness.

Government investment vehicles have played a central role. The Oman Investment Authority grew assets to about RO 21 billion by end-2025, while the Oman Future Fund approved 164 projects worth RO 462 million, including significant support for SMEs. Cumulative investments in special economic zones, free zones and industrial cities reached about RO 22 billion by mid-2025, spanning manufacturing, logistics, energy and minerals.

Logistics and ports remain key pillars of diversification. ASYAD Group reported revenues of RO 493 million and profits of RO 52.8 million in 2024, alongside strategic international expansion and major port upgrades at Salalah, Suwaiq and Duqm. Parallel investments in renewable energy, such as wind and solar projects in Dhofar, Ibri and Manah, have lifted renewables’ share of electricity generation to 11.5 per cent, with a 30 per cent target by 2030.

Tourism, industry and mining also recorded solid gains in 2025, supported by higher investments, growing visitor numbers and new concession areas. Industrial output rose 7 per cent, while tourism revenues and arrivals continued to recover, contributing 2.7 per cent to GDP.

Commenting on these developments, the Undersecretary of the Ministry of Economy said the past six years have strengthened Oman’s economic and social stability, with the Tenth Plan achieving about 97 per cent implementation. The Eleventh Plan, he added, is designed to accelerate growth, enhance sustainability and deepen private-sector participation, targeting average GDP growth of around 4 per cent while keeping inflation below 2 per cent.