Muscat – Oman’s non-oil sectors have continued to strengthen their role in supporting economic growth and fiscal sustainability, increasing their contribution to gross domestic product (GDP) during the 10th Five-Year Plan (2021–2025), official data showed.
The Ministry of Economy said the contribution of non-oil sectors to GDP at constant prices rose to 73.3% by the end of the third quarter of 2025, up from 72.5% in 2024. The value added by non-oil activities reached approximately RO21bn, compared to RO20.4bn in the same period last year.
Real growth in non-oil activities stood at 3.4% at the end of the third quarter of 2025, easing from 4.2% recorded in 2024.
Dr Salem bin Abdullah al Sheikh, official spokesperson for the Ministry of Economy, said economic diversification remains a central pillar of financial and economic sustainability in the sultanate, supported by steady growth in non-oil revenues and a gradual recovery in economic activity.
He noted that non-oil revenues increased from around RO2.7bn in 2020 to RO3.507bn in 2024. Non-oil revenues approved in the 2025 state budget are estimated at approximately RO3.573bn, representing a 1.5% increase compared to the 2024 budget.
According to the ministry, these revenues include RO680mn from value-added and excise tax, RO656mn from corporate income tax, RO800mn from dividends of companies affiliated with Oman Investment Authority, and about RO1.4bn from various government fees.
Sheikh said Oman continues to enhance fiscal sustainability by improving public finance efficiency, strengthening the tax system, expanding the non-oil revenue base, diversifying financing sources and attracting higher value-added investments.
He added that foreign direct investment (FDI) has recorded steady growth in recent years, supported by improved economic prospects, diversification efforts and increased investor confidence following upgrades to Oman’s credit rating.
The cumulative stock of FDI rose 18% in 2024 compared to the previous year and exceeded RO30.3bn by the end of the first half of 2025, marking a growth of 12.8% compared to the same period last year.
The ministry said the strong performance of non-oil sectors has underpinned overall economic growth in line with the targets of the 10th Five-Year Plan and Vision 2040, which seeks to reduce reliance on oil.
During the same period, the contribution of the oil sector to GDP declined, with growth easing from 8.6% in 2022 to 0.1% in 2023, contracting by 2.7% in 2024, before recording marginal growth of 0.3% by the end of the third quarter of 2025 compared with a year earlier.
Average GDP growth reached 3.4% during the first four years of the current development plan, close to the targeted average of 3.5%. Forecasts by the Ministry of Economy, the International Monetary Fund and the World Bank indicate growth of between 2.2% and 3% by the end of this year, with further improvement expected over the medium term under the next development plan.
Sheikh stated that the first phase of Vision 2040 implementation under the 10th Five-Year Plan (2021–2025) has succeeded in delivering a positive transformation in both the macroeconomic and business environments. This progress has reinforced the foundations of fiscal sustainability by strengthening the state’s financial position, improving the sultanate’s credit rating, enhancing the efficiency of public spending, rationalising expenditure and reducing public debt to safe levels.
He affirmed that the prospects for economic diversification under the 11th Five-Year Plan (2026–2030) remain robust and supportive of achieving fiscal and economic sustainability targets. He noted that this phase will build on existing gains by continuing to meet national objectives, while strengthening international cooperation and strategic partnerships with friendly countries.
