Oman’s Economic Indicators Point to Continued Growth

By the Editorial Team · Monday, November 2, 2026

Oman's economy grew by 3.8 percent in the first half of 2026, driven by a 9.7 percent rise in oil activities and a 1.3 percent increase in non-oil sectors, pushing GDP to RO 19.54 billion. Despite a 43.7 percent drop in quarterly foreign direct investment inflows, the overall FDI stock rose 6.4 percent, highlighting ongoing efforts to diversify the economy and strengthen trade competitiveness.

Oman’s economy continued to demonstrate steady growth in 2026, with real gross domestic product (GDP) expanding by 3.8 percent to reach RO 19.54 billion by the end of the second quarter, according to data released by the Ministry of Economy. This growth was driven by advances in both the oil and non-oil sectors, reflecting the country’s ongoing efforts to diversify its economic base.

Oil activities recorded a robust rise of 9.7 percent, generating RO 6.45 billion, while non-oil sectors grew by 1.3 percent to RO 13.92 billion. The sustained contribution of non-oil industries underscores Oman’s strategic push to reduce dependence on hydrocarbon revenues and strengthen other areas of the economy.

Foreign direct investment (FDI) within Oman increased, with the total FDI stock rising by 6.4 percent to RO 32.21 billion by the end of June. However, FDI inflows during the second quarter dropped by 43.7 percent compared to the same period in the previous year, registering RO 1.93 billion. This decline highlights a potential area of concern for maintaining inward investment levels amid the evolving global economic landscape.

Inflation remained relatively contained, with an average rate of 2.95 percent recorded over the January to September period, indicating efforts to maintain price stability as global economic conditions fluctuate.

Oman’s oil sector benefited from an upswing in crude prices, with the average price of Omani crude oil reaching $82.60 per barrel by the end of September, a 14.7 percent increase that supported overall economic activity.

External trade also showed significant improvement, with the trade balance expanding by 64.1 percent through August 2026. This surge reflects stronger export performance and enhanced competitiveness in both regional and international markets, aligning with Oman’s broader economic diversification and growth strategy.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.