Oman’s economy demonstrated steady growth in 2024, primarily fueled by a robust performance in non-oil activities, according to the Ministry of Economy’s latest Economics Brief. Despite a decline in oil sector revenues and foreign direct investment (FDI) flows, the country’s gross domestic product (GDP) at constant prices reached RO 28.15 billion by the end of the third quarter of 2024, marking a growth rate of 1.86 percent.

The non-oil sector grew by 4.17 percent, contributing RO 20.53 billion to the economy, while petroleum activities contracted by 2.76 percent, totaling RO 8.88 billion. This trend highlights the ongoing volatility within the oil sector. Additionally, the inflation rate remained stable, averaging 1.0 percent between January 2024 and January 2025, signaling steady consumer prices.

In terms of foreign direct investment, Oman’s FDI stock reached RO 26.68 billion, reflecting a 16.18 percent increase by the end of Q3 2024. However, FDI inflows fell by 22.94 percent, amounting to RO 3.72 billion, which indicates a decline in investor sentiment. Furthermore, Oman’s average oil price decreased by 12.8 percent to $72.5 per barrel as of January 2025, putting additional pressure on government revenues.

Trade data presented a mixed scenario; the trade balance decreased by 3.38 percent to RO 7.52 billion by the end of 2024. Merchandise imports surged by 12.09 percent to RO 16.71 billion, while non-oil Omani exports fell by 16.26 percent to RO 6.23 billion. These figures underscore Oman’s efforts to diversify its economy, with non-petroleum activities emerging as a significant growth driver. However, the decline in FDI inflows and non-oil exports indicates a pressing need to attract more foreign investment and strengthen trade relations.

Oman is pursuing its Vision 2040 strategy, which emphasizes the importance of investments in logistics, manufacturing, and tourism to ensure long-term economic stability.