Muscat: Under the wise leadership of His Majesty Sultan Haitham bin Tarik, the Sultanate’s economic and financial policies have taken bold steps towards achieving the goals of Oman Vision 2040, according to His Excellency Dr. Nasser bin Rashid Al Maawali, Undersecretary of the Ministry of Economy.

In comments summarizing the nation’s economic performance, His Excellency emphasized that the government’s policies have strengthened Oman’s standing as an attractive and open investment hub. Key initiatives have accelerated the implementation of development projects, advanced non-oil activities, and raised the volume of both local and foreign investments as part of the Tenth Five-Year Plan (2021–2025).

His Excellency Dr. Al Maawali highlighted that the Sultanate stands on solid economic ground, with development project funding climbing from RO 6.4 billion at the start of the Tenth Plan to RO 9.7 billion by the end of October 2024—an increase of 51.5%. Foreign direct investments (FDI) have also been on the rise, nearing 10.9% of GDP, the plan’s target. The cumulative total of FDI surpassed RO 26 billion by mid-2024, showcasing investor confidence in Oman’s growth prospects, political stability, and expanding strategic partnerships.

New laws and ongoing legislative reforms—such as the Bank Deposits Protection Law issued in 2024, and upcoming laws on individual income tax, finance, electronic transactions, and special and free economic zones—are key to bolstering the Sultanate’s investment landscape. His Excellency noted that these reforms unify incentives for investors, enhance Oman’s business environment, and drive the economic diversification outlined in Oman Vision 2040.

Several landmark projects inaugurated in 2024 underscore the Sultanate’s strong momentum:

Duqm Refinery, a strategic partnership with the State of Kuwait.

Fishing Port in the Special Economic Zone in Duqm, to localize fisheries industries.

Asyad Container Terminal, boosting logistics and port operations.

Food and Pharmaceutical Projects, contributing to local market needs and non-oil exports.

Health Facilities, including the Medical City Hospital for military and security services and Al Mazyouna Hospital.

Looking ahead, major projects underway include Sultan Haitham City—an exemplar for sustainable future cities, a railway link between Oman and the UAE, an integrated economic zone in Al Dhahirah in partnership with Saudi Arabia, and continued expansions of existing industrial cities.

According to Dr. Al Maawali, the Tenth Five-Year Plan is close to meeting its targets as it enters its final year. About 93% of the strategic programs have been implemented, covering priorities across the four axes of Oman Vision 2040. Efforts to diversify the economy continue to show results:

The average GDP growth at constant prices hit 3.9% for 2021–2023, above the 3.5% target.

GDP (constant prices) reached RO 28.2 billion by September 2024, a 1.9% growth over the same period in 2023.

Non-oil activities grew 4.2%, contributing about 72.7% to GDP.

Meanwhile, inflation remains tamed at an average of 1.7% over 2021–2023, dipping to 0.6% for January–November 2024.

As part of the drive for diversification and modernity, the government launched the National Policy for Local Content, began work under the Oman Future Fund, and inaugurated the National Program for Artificial Intelligence and Digital Technologies. Additionally, the Ministry of Economy allocated RO 10 million in 2024—and RO 15 million in 2025—to integrate AI applications into development projects, highlighting the Sultanate’s push into cutting-edge technology.

A key milestone in 2024 was restoring Oman’s credit rating to investment-worthy status with a stable outlook by Standard & Poor’s, while Fitch revised its outlook from stable to positive. Public debt dropped to about RO 14.4 billion in 2024 (34% of GDP), down from RO 19.8 billion in 2020, showcasing effective fiscal management and improved economic resilience.

His Excellency noted that the trade balance recorded a surplus exceeding RO 6 billion between January and September 2024, with non-oil exports reaching RO 4.5 billion. These strong external balances contributed to current account surpluses and further solidified Oman’s financial stance.

Looking to 2025, Dr. Al Maawali predicted that economic growth would climb to around 3.1%, in line with IMF projections. He affirmed the government’s resolve to continue building on this momentum, guided by the framework of Oman Vision 2040.