Muscat: Honorable Dr. Dhafer bin Awadh Al Shanfari, Chairman of the Economic and Financial Committee at the State Council, emphasized the budget’s positive aspects, which include social support for oil products, electricity, water, and the social protection system. He noted progress in reducing the cost of public debt through restructuring less expensive loans. Dr. Al Shanfari also pointed to the government’s commitment to increasing investment spending, particularly in sectors such as industry, tourism, fisheries, and logistics, which are expected to boost Oman’s GDP and future revenues.
The 2025 budget allocates funds to job creation in the private sector and training programs for Omanis. Harnessing financial surpluses to stimulate the non-oil economy and address job-seeker challenges will be crucial, he added, expressing optimism about oil prices averaging above $70 per barrel, potentially eliminating the projected deficit based on $60 per barrel.
Honorable Dr. Mohammed bin Hamid Al Wardi of the State Council highlighted the budget’s alignment with the tenth five-year plan and financial sustainability goals amid global economic tensions. Spending for 2025 is set at RO 11.8 billion, a 1.3% increase from 2024. The budget aims for 2.7% economic growth, fueled by RO 4.4 billion in government investments. Notably, public debt servicing costs have dropped to RO 915 million, the lowest in years, with public debt standing at RO 14.4 billion by the end of 2024.
Dr. Khalid bin Saeed Al Amri, Chairman of the Omani Economic Association, noted the budget’s reliance on oil and gas revenues, which constitute over 70% of total revenues, estimated at RO 11.18 billion. He praised the allocation of RO 5 billion for social services, covering education, healthcare, and infrastructure projects such as 22 new government schools and multiple health institutions.
Despite an estimated deficit of RO 620 million, or 5.5% of total revenues, Dr. Al Amri expressed confidence in Oman’s improved credit rating, which reached positive investment grades in 2024. He pointed out that the government’s efforts in economic diversification must continue to leverage Oman’s strengths in geography, mineral resources, and tourism.
Echoing similar sentiments, Dr. Yousef bin Ali Al Balushi, an economic expert, commended the focus on social protection, infrastructure, and reducing public debt. He called for greater emphasis on private sector involvement, automation, and technology to align spending with global trends.
