Oman Posts Positive Growth

Performance of Oman’s national economy in 2017 has been positive in a number of economic indicators. The sultanate managed to achieve the targeted public revenues for the first half this year as gross revenues grew to a little bit more than OMR 4 billion ($10.39 billion). The state budget seeks to achieve OMR 8.7 billion public revenues this year.

The registered revenues in the first half this year reflected the government efforts to diversify sources of income and reduce reliance on oil. The non-oil and non-tax revenues grew to OMR 748.2 million compared to OMR 532.7 million in the first half of last year, registering a growth by 40.5%, ONA reported.

The oil revenues (oil and gas) witnessed a remarkable growth to hit OMR 2.8 billion compared to OMR 2.1 billion at the corresponding period last year. The tax revenues (custom and corporate income tax) declined from OMR 473 million to OMR 394.8 million.

Since the oil price drop in mid-2014, the sultanate has taken a number of measures to support public finance, continue economic growth and diversify sources of national economy. These measures have reflected on the public expenditure, which declined to OMR 6.4 billion or by OMR 172.2 million compared to the same period last year. The state budget estimates the public expenditure for this year at OMR 11.7 billion.

As for the GDP, the national economy witnessed good growth. GDP grew by 12.9% at current prices to hit OMR 6.4 billion compared to OMR 5.7 billion at the same period last year. The GDP for oil activities grew by 30.6% to cross OMR 2 billion compared to OMR 1.5 billion at the first quarter last year.

Non-oil activities grew by 5.3% to stay at OMR 4.6 billion; a growth by OMR 231 million compared to the first quarter last year. Commodity exports in the first quarter this year grew by 3.10% to hit OMR 2.8 billion compared to OMR 2.5 billion during the same period last year benefiting from the growth of oil activities by 28.4%, which stood at OMR 1.7 billion. Non-oil exports also grew by 14% to hit OMR 751.8 million.