MUSCAT: Oman’s economy is expected to grow by 3.5% in both 2026 and 2027, supported by resilient non-oil activity and a positive contribution from hydrocarbon production, Standard Chartered said on Wednesday.

The bank said non-oil growth was expected to remain robust, driven by logistics, manufacturing and continued public investment linked to Oman Vision 2040.

Standard Chartered also sharply raised its forecasts for Oman’s fiscal surplus, projecting it at 4.6% of gross domestic product in 2026 and 3.6% in 2027. Its previous forecasts were 0.5% and 1.0%, respectively.

Public debt is expected to fall to around 33% of GDP by the end of 2026 and 31% by the end of 2027, the bank said.

Oman’s current-account surplus is meanwhile forecast at 5.0% of GDP in 2026 and 3.4% in 2027, significantly higher than the bank’s earlier projections of 1.0% and 1.5%.

Hussain Al Yafai, Chief Executive Officer and Head of Coverage at Standard Chartered Oman, said the Sultanate was entering its next phase of development from a stronger economic position.

“Sustained non-oil growth alongside improving fiscal and external balances provides a firmer foundation for continued investment in the sectors that will shape the Sultanate’s next phase of diversification,” Al Yafai said.

He said the focus would be on converting that resilience into broader and more durable growth as Oman advances its Vision 2040 ambitions.

Standard Chartered said shifts in regional and international supply chains could also create opportunities for Oman.

As international investors seek more secure trade routes, Oman’s geographical location, neutral diplomatic position and relatively low exposure to direct conflict spillover could strengthen the strategic importance of its ports, industrial zones and logistics infrastructure, the bank said.

It expects investment momentum to increase across logistics, manufacturing, re-export activity and energy-linked infrastructure.

“As companies rethink supply chains and trade routes, Oman’s advantage is increasingly about connectivity as well as resilience,” Al Yafai said.

He said Oman’s ports, industrial zones and logistics infrastructure provided a platform to attract greater trade and investment and deepen links with regional and global markets.

Standard Chartered said continued expansion of the non-oil economy, combined with investment in logistics, manufacturing and energy-related infrastructure, could help Oman sustain growth and capture opportunities arising from changing regional trade and investment flows.