MUSCAT : The report, covering achievements from 2021 to 2025 and key developments in 2026, outlines major economic, legislative and institutional reforms that have strengthened the Sultanate’s financial position, expanded investment opportunities and accelerated development across the governorates.

According to the report, Oman’s real GDP growth recovered from a contraction of 3.4 percent in 2020 to an expansion of 2.4 percent in 2025, recording average annual growth of approximately 3.2 percent between 2021 and 2025.

GDP at constant prices increased from RO 34.48 billion in 2021 to RO 39.29 billion in 2025, representing growth of 13.9 percent.

One of the most significant achievements was the reduction in public debt, with the debt-to-GDP ratio falling from 67.9 percent in 2020 to 34.6 percent in 2025. The improvement was supported by fiscal reforms, better debt management and greater spending efficiency.

Oman also regained its investment-grade credit rating, with Fitch upgrading the country from BB- to BBB-, reflecting improved fiscal stability and creditworthiness.

The report highlighted growing private sector participation, with private investment increasing from 15.7 percent of GDP in 2020 to 16.8 percent in 2025, reaching approximately OMR 7.07 billion.

The ratio of net foreign direct investment flows to GDP rose from 2.9 percent to 4.5 percent during the same period.

Meanwhile, the stock of foreign direct investment reached RO 32.197 billion by the end of the first quarter of 2026, marking a 6.4 percent increase compared to the corresponding period in 2025.

Initiatives such as the Invest in Oman platform, investor residency programme, Oman Future Fund and public-private partnerships helped strengthen the investment environment.

Economic diversification also gathered pace through major investments in renewable energy, green hydrogen, manufacturing, logistics, tourism, mining and food production.

Major projects included the 500-megawatt Ibri 2 solar power plant, which began operations in 2021, and the Manah 1 and Manah 2 solar plants, which added a combined 1,000 megawatts in 2025.

The Liwa Plastics Industries Complex, Sanvira carbon plant, Murooj dairy project, Sohar grain silos and pharmaceutical manufacturing facilities also contributed to expanding domestic production and strengthening supply security.

The Development Bank’s capital was increased from RO 100 million to RO 500 million in 2023, while its financing ceiling for individual projects rose from RO 1 million to RO 5 million, with provisions to reach RO 7.5 million for qualifying projects.

Beyond economic growth, the report recorded improvements in public services and human capital development.

A total of 49 school buildings were completed by the end of 2025, while 68 healthcare facilities were opened across the governorates during the first five years.

In vocational training, 11 units received licences and 822 professions were classified as eligible for professional accreditation.

The restructuring of pension and social protection systems also expanded coverage, with programmes and benefits reaching more than 3.3 million beneficiaries, including children, elderly citizens, people with disabilities, orphans, widows and families requiring income support.

Oman climbed from 84th place in the Global Innovation Index in 2020 to 69th globally in 2026, reflecting progress in its transition towards a knowledge-based economy.

The country’s emerging space industry also witnessed substantial growth, with the number of companies increasing from 11 in 2023 to 26 by the end of 2025. Private sector investment in the industry rose by 270 percent during the period.

The Duqm Spaceport conducted the Duqm-1 mission in 2024 and Duqm-2 in 2025, while the Aman-1 and OL-1 satellite launches marked further developments in the sector.

The Omani Genome Project, launched in 2024, also aims to strengthen medical research through genetic databases, specialised laboratories and a national biobank.

In environmental sustainability, renewable energy’s share of total energy consumption increased from approximately zero in 2020 to 9 percent in 2025.

The report revealed that 10 Oman Vision 2040 indicators have already reached their 2030 targets.

These include economic freedom, healthy life expectancy, youth development, public spending, budget balance, current account balance, public debt, economic leadership, decentralisation and the implementation of the population settlement hierarchy.

Other indicators, including university rankings, labour productivity and environmental performance, have moved closer to their targets.

However, the report acknowledged that certain indicators require faster progress, particularly in areas linked to innovation, competitiveness, governance and economic diversification.

The report also highlighted the growing importance of decentralisation, with governorates assuming greater responsibility for identifying development priorities, preparing projects and improving local services.

Supported by legislative reforms introduced between 2020 and 2022, local administrations and municipal councils have gained stronger roles in planning, budgeting and monitoring development projects.

The approach focuses on the economic strengths of individual governorates, including fisheries, agriculture, mining, renewable energy, logistics and tourism, to encourage more balanced development across Oman.

The report is structured around four chapters covering major transformations, governorate-level development, performance indicators and future opportunities and risks.

As Oman Vision 2040 enters its second phase under the Eleventh Five-Year Development Plan (2026–2030), the report identifies maintaining fiscal stability, accelerating economic diversification, expanding private sector participation and improving public services as key priorities.

It also stresses the need to prepare for global developments in artificial intelligence, energy, critical minerals, supply chains and climate change.

Strengthening national skills, advancing local manufacturing, improving resource efficiency and connecting scientific research with industry will be essential to sustaining progress.

The report concludes that the achievements of the first five years have established a foundation for the next phase of Oman Vision 2040, with greater emphasis on competitiveness, sustainability and balanced economic growth.

For all the latest news from Oman and GCC, follow us on Twitter, Instagram and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.