Muscat – As Oman’s reform agenda advances under Vision 2040, the sultanate’s economy has demonstrated strong resilience to heightened global uncertainty, renewed geopolitical tensions and oil price fluctuations in 2025, according to the International Monetary Fund (IMF).
Following completion of the Article IV Consultation for Oman, the IMF’s Executive Board commended the country’s economic resilience, underpinned by steady implementation of reforms under Vision 2040.
‘Oman’s economy has demonstrated strong resilience to shocks, with economic activity expanding amid low inflation, while fiscal and external positions remain strong. Despite heightened uncertainty and declining oil prices, the outlook remains favourable. Growth, as well as fiscal and external balances, is expected to remain robust over the medium term,’ the IMF’s Executive Directors said in a statement.
The IMF noted that Oman’s reform agenda continues to advance, strengthening resilience, supporting a favourable economic outlook and helping to achieve the envisioned economic transformation under Vision 2040.
‘Policies are being implemented to develop the financial sector, tackle labour market bottlenecks, enhance the business environment, improve the transparency and performance of state-owned enterprises, expand renewable energy production and scale up digital initiatives,’ it said.
Over the medium term, the IMF expects Oman’s economic growth to strengthen further as oil production gradually returns to capacity and the non-hydrocarbon economy remains robust, supported by ongoing reforms under Vision 2040 and the rollout of large-scale investment projects.
The fund noted that prudent fiscal management has helped maintain a fiscal surplus despite declining oil prices, with the overall balance estimated at 0.7% of GDP in 2025.
The IMF’s Executive Directors welcomed the Omani authorities’ continued commitment to prudent fiscal management and intergenerational equity. They stressed the need to further advance tax policy and administration reforms, phase out untargeted subsidies while protecting the most vulnerable, and rationalise non-essential spending.
The directors also welcomed progress in financial sector reforms and the findings of the Financial System Stability Assessment, which showed that the sultanate’s banking system is well capitalised and broadly resilient to shocks.
In addition, they commended the sultanate’s strong efforts to advance structural reforms and its continued commitment to transitioning towards a more sustainable and diversified economy. The directors called for additional measures to narrow the public–private sector wage gap, increase female labour force participation, and improve educational and vocational training outcomes.
