As per Oman’s Ministry of Finance’s final accounts report on the actual performance of the 2025 state budget, the Sultanate recorded public revenues of OMR 12.122 billion (USD 31.5 billion) in the fiscal year ending 2025, with total expenditures reaching OMR 12.583 billion (USD 32.7 billion), which in turn resulted in a budget deficit of OMR 461 million (around USD 1.2 billion).
The ministry further said the deficit was 26% lower than the budgeted deficit of OMR 620 million (USD 1.61 billion), attributing the improvement primarily to higher oil and gas revenues.
Total revenues, on the energy front, amounted to OMR 8.481 billion (approximately USD 22 billion), including net oil revenues of OMR 6.640 billion (USD 17.26 billion). The average realized oil price stood at USD 72 per barrel, compared with the budget assumption of USD 60 per barrel.
“Average oil and condensate production reached 999,000 barrels per day, slightly below the budgeted level of 1.001 million barrels per day, reflecting Oman’s commitment to the voluntary production cuts agreed under the OPEC+ framework,” the Finance Ministry report stated.
Net gas revenues, on the other hand, totalled OMR 1.841 billion (USD 4.78 billion), supported by an increase in the average liquefied natural gas (LNG) selling price from the estimated USD 5.41 to USD 7.49 per unit.
“Non-oil revenues reached OMR 3.641 billion (USD 9.46 billion) by the end of 2025,” according to the report.
“Total public debt stood at OMR 14.6 billion (USD 36.41 billion) at the end of 2025, down by OMR 15 million (USD 39 million) from 2024, while all financing requirements were met and liability management operations were carried out without increasing the overall debt level,” it added further.
Talking about the Oman economy, the Gulf nation fared better compared to its regional peers in terms of showing resilience against the volatilities emerging from the US-Iran war, as the location of its major ports outside the Strait of Hormuz bottleneck, along with continued policy reforms, helped Muscat stay afloat.
As per the International Monetary Fund (IMF), favourable oil prices and continued commitment to fiscal discipline will generate sizable fiscal and external surpluses for the nation in the coming days.
An IMF team, led by Abdullah AlHassan (mission chief for Oman & Afghanistan), was in Muscat during June 7-15, 2026, to discuss economic and financial developments, the outlook, and the country’s policy priorities.
AlHassan told the Times of Oman, “Oman’s oil and natural gas infrastructure has remained largely unaffected, enabling Oman to increase oil production and exports amid regional supply disruptions. The banking sector remains well-capitalized and liquid, benefiting from strong buffers heading into the regional conflict and prudent oversight by the Central Bank of Oman (CBO).”
“The strong growth momentum continues. Real gross domestic product (GDP) growth accelerated in 2025 to 2.4% (from 1.6% in 2024), supported by both the hydrocarbon and non-hydrocarbon activities. Growth is projected at around 3.7% in 2026, driven by increased oil production, and 3% in 2027,” the senior official further added.
However, as per the IMF, a worrying point for Muscat will be the non-hydrocarbon sector, whose growth is expected to ease to 2.5% in 2026, reflecting the impact of the Iran war on tourism and construction.
However, the global monetary body sees the blip as a temporary one, as the growth in 2027 will again accelerate to 3.2% on the back of a broad-based recovery. Average inflation remained contained at 1% in 2025 before rising to 2.8% (year-on-year) during January-May 2026, driven by higher food and transportation prices.
In his final remarks, Al Hassan said, “Oman’s fiscal and external positions are set to strengthen, supported by higher oil revenues and continued fiscal discipline. After narrowing to 0.6% of GDP in 2025, reflecting lower oil prices and increased capital spending, the fiscal surplus is projected to widen to 4.5% of GDP in 2026 and 4.2% in 2027. Central government debt continues its downward trajectory, reaching 34.7% of GDP at 2025 end.”