MUSCAT : The report highlighted a positive shift in global economic sentiment, with the International Monetary Fund revising its global growth forecast for 2026 upward to 3.3 percent, compared to 3.1 percent projected in October 2025. This reflects the global economy’s ability to withstand trade disruptions, aided by easing tariffs and sustained investments in artificial intelligence.

The IMF maintained a similar 3.3 percent growth outlook for 2025 but cautioned that risks remain, particularly from geopolitical tensions and rapid developments in the technology sector. Meanwhile, global trade growth is expected to slow to 2.6 percent in 2026 from 4.1 percent in 2025, while inflation is projected to ease to 3.8 percent. Global debt also reached a record US$348 trillion by the end of 2025, driven by increased borrowing in major economies.

Locally, Oman’s fiscal position saw a shift, with the 2025 budget recording a deficit of RO 480 million, compared to a surplus of RO 540 million in 2024. This was largely due to a 7.99 percent decline in public revenues, attributed to lower oil and gas income, while public spending remained largely unchanged.

Despite this, Oman’s financial standing strengthened on the global stage. Fitch Ratings upgraded the Sultanate to BBB- with a stable outlook, while Standard & Poor’s reaffirmed the same rating. Moody’s also raised Oman’s rating to Baa3 with a stable outlook, reflecting improved fiscal stability and the country’s ability to meet its financial obligations.

Trade performance showed mixed trends. Total merchandise exports declined by 7.14 percent to RO 23.26 billion in 2025, driven by a 15.21 percent drop in oil exports. However, non-oil exports grew by 7.48 percent, highlighting ongoing diversification efforts. Imports rose by 2.72 percent to RO 17.17 billion, resulting in a trade surplus of RO 6.10 billion.

Oman’s GDP at current prices grew by 2.30 percent to reach RO 42.14 billion in 2025, supported by a sharp 56.94 percent increase in natural gas activity and a 3.71 percent rise in non-oil sectors. At constant prices, GDP growth stood at 2.40 percent, driven mainly by a 3.11 percent expansion in non-oil activities, including agriculture, industry, and services. Oil sector value added also saw a modest increase of 1.09 percent.

Inflation remained under control, rising slightly to 0.99 percent in 2025 from 0.60 percent in 2024, staying within safe levels.

Foreign direct investment (FDI) continued to grow, reaching RO 31.38 billion by the end of 2025, marking an 8.13 percent increase. The oil and gas extraction sector attracted the largest share of investments, followed by manufacturing and financial services. The United Kingdom emerged as the top investor, followed by the United States and the Kuwait.

The Ministry of Economy noted that these indicators reflect the Sultanate’s improving economic performance, driven by non-oil sector expansion, strengthened financial stability, and a more attractive investment climate.

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