Oman Sees 13 Percent Increase in Public Revenues to $17.2 Billion in H1 2026

Oman's rising public revenues reflect a broader trend of fiscal strengthening in the GCC, which may influence investment flows and economic resilience across the region.

• Public revenues in Oman rose 13% to 6.60 billion Omani rials ($17.2 billion) in H1 2026, driven by higher oil and gas receipts.
• Net oil revenues increased by 10% to 3.33 billion rials, supported by an average oil price of $74 per barrel and production of 1.07 million barrels per day.
• Total public expenditure grew by 9% to 6.62 billion rials, reflecting ongoing investments in economic diversification.

• Economic diversification is a priority for Oman, aimed at reducing reliance on oil amid fluctuating global prices.
• The 11th Five-Year Development Plan (2026-2030) is central to Oman's strategy, focusing on higher-value sectors and job creation.
• The International Monetary Fund (IMF) has noted Oman’s progress in diversification, albeit at a slower pace compared to other GCC countries.

Oman's public revenue growth in H1 2026 is a significant indicator of the country's economic health, primarily driven by its oil and gas sectors. The Ministry of Finance reported a 13% increase in revenues compared to the same period in the previous year, totaling 6.60 billion Omani rials ($17.2 billion). This growth is largely attributed to a 10% rise in net oil revenues, which reached 3.33 billion rials, and a remarkable 32% surge in net gas revenues, climbing to 1.16 billion rials. The average realized oil price stood at $74 per barrel, with daily production hitting 1.07 million barrels.

This increase in revenues comes at a time when Oman is actively pursuing economic diversification to mitigate the risks associated with oil price volatility. The government has been investing in various sectors as part of its 11th Five-Year Development Plan, which aims to enhance economic resilience through the development of higher-value industries and increased exports. Total public expenditure also rose by 9% to 6.62 billion rials, indicating a commitment to ongoing development projects and current spending.

Despite the revenue increase, public debt remained stable at 14.16 billion rials, reflecting a cautious approach to fiscal management. The development expenditure included significant allocations for economic transformation projects, with a disbursement rate of 61%. This suggests that while Oman is benefiting from higher oil and gas revenues, it is also strategically investing in its future economic landscape.

The overall fiscal performance indicates a narrowing of the fiscal deficit compared to the previous year, which is a positive sign for investors and stakeholders in the region. However, the IMF has pointed out that Oman’s pace of diversification is slower than that of its GCC counterparts, highlighting the need for continued focus on non-oil sectors to ensure long-term sustainability.

• Investors: Increased revenues may attract more foreign investment into Oman's emerging sectors.
• Energy Sector Workers: Higher oil and gas revenues could lead to job stability and growth in these industries.
• Government Contractors: Increased public expenditure may result in more contracts for development projects.
• Local Businesses: Economic diversification efforts could create new opportunities in various sectors.

• Oil Prices: Continued fluctuations in global oil prices will directly impact Oman's revenue streams and fiscal health.
• Diversification Progress: Monitoring the implementation of the 11th Five-Year Development Plan will reveal how effectively Oman is reducing its oil dependency.
• Regional Economic Trends: Changes in fiscal policies across the GCC may influence investment flows and economic stability in Oman.