Oman’s economy ended the 2025-26 financial year on a steady note, as the real GDP stood at RO 39.30 billion, reflecting an overall expansion of 2.4% at constant prices by the end of Q4. For the Sultanate, its non-oil sectors emerged as the principal driver of growth, a strong verdict for the Gulf nation’s diversification agenda.
According to a monthly bulletin by the Ministry of Economy, Oman’s non-oil GDP rose to RO 28.70 billion, marking a robust increase of 3.1%, compared with petroleum activities, which grew at a slower pace of 1.1% to reach RO 12.02 billion. Sustained activity expansion occurred across sectors like manufacturing, logistics, tourism and services. Inflation, on the other hand, remained contained at an average of 1.69% during January-February 2025/2026, indicating stable price levels that supported household consumption and business planning.
Foreign direct investment (FDI) stocks (total accumulated value of cross-border investments) increased to RO 31.38 billion by the end of Q4 2025, up 8.1%, reflecting continued investor confidence in the Sultanate’s long-term economic outlook. However, FDI inflows declined sharply by 33.7% to RO 2.36 billion, suggesting short-term caution amidst global economic uncertainty and tighter financial conditions due to volatile geopolitics.
Oil market trends, on the other hand, weighed on the broader outlook, with the average crude price falling by 13.1% to USD 63.3 per barrel by the end of February 2026, reflecting softer global demand and increased supply. However, with the Middle East conflict at its peak, which has also resulted in crude oil prices exceeding USD 100 per barrel, the impact on Oman’s economy in the coming days remains to be seen.
Discussing trade metrics, while the overall trade balance recorded a surplus of RO 255.9 million at the end of January 2026, there was a significant contraction of 51.5% compared to the same period in 2025. Imports increased by 10.9% to RO 1.58 billion, driven by higher domestic demand and ongoing project activity, while non-oil exports rose by 15.3% to RO 613 million, underscoring improving export diversification.