Oman’s Q1 Revenues Fall 7% Amid Lower Oil Income, Despite Boost in Development Spending

Muscat : Oman’s total public revenues dropped to RO 2.635 billion in the first quarter of 2025, reflecting a 7% decline from RO 2.826 billion recorded during the same period last year. The dip is primarily due to a 13% fall in net oil revenues, which decreased to RO 1.468 billion from RO 1.688 billion in Q1 2024. Net gas revenues also declined slightly by 2%, totaling RO 436 million compared to RO 444 million last year.

However, the report from the Ministry of Finance noted an encouraging rise in non-oil revenues. Current revenues increased by RO 34 million, reaching RO 725 million by the end of Q1 2025, up from RO 691 million in the previous year.

Despite the revenue shortfall, government spending grew by 4% to RO 2.771 billion, up from RO 2.664 billion in Q1 2024. The increase was driven by a rise in development expenditures, which stood at RO 254 million—representing 28% of the total RO 900 million development budget for the year.

Current expenditures slightly decreased by RO 11 million to RO 1.967 billion, while contributions and other expenses rose modestly by RO 4 million, totaling RO 490 million.

Key social support allocations included RO 144 million for the social protection system and RO 27 million for petroleum product subsidies. The government also allocated RO 100 million towards debt repayment obligations.

Spending on essential sectors such as health, education, and social services amounted to approximately RO 1.668 billion. In a move to support the private sector, the Ministry of Finance disbursed over RO 304 million in receivables within an average of five working days.

A notable highlight in the report was the improvement in Oman’s public debt position, which dropped to RO 14.3 billion by the end of Q1 2025, down from RO 15.1 billion in the same period last year—demonstrating continued fiscal discipline and strategic debt management.