Muscat: The World Bank’s 2024 Gulf Economic Update has commended the Sultanate of Oman for achieving noteworthy fiscal and economic progress, despite prevailing regional and global challenges.
The report highlights that Oman’s strong economic performance is a direct outcome of its sound fiscal and economic policies, implemented in line with the strategic objectives of “Oman Vision 2040,” which focuses on economic diversification and financial sustainability.
According to the World Bank, Oman has posted fiscal surpluses in recent years, driven by government efforts to enhance financial performance. The country also achieved a current account surplus, primarily due to a rise in non-oil exports and service exports, which has helped strengthen Oman’s external financial position.
One of the report’s key acknowledgments is Oman’s success in reducing public debt from 68% to 35% of GDP, reflecting its strong commitment to fiscal discipline. This achievement was further underscored by S&P’s 2024 upgrade of Oman’s credit rating to investment grade (BBB-).
The World Bank also noted Oman’s ability to maintain low inflation, registering just 0.6% in 2024, well below the GCC average of 2%. Looking ahead, the report forecasts continued current account surpluses and growth in non-oil exports, supported by sustained fiscal discipline and diversification initiatives.
For the broader GCC region, the report projects economic growth of 3.2% in 2025 and 4.5% in 2026. The oil sector is expected to expand by 5.7%, while the non-oil sector could grow by 4.9% over the medium term, with inflation levels remaining relatively low across the region.
