Oman’s Economy Grows 2.5% in Early 2025, Thanks to Non-Oil Sector
Oman’s economy grew by 2.5% in the first three months of 2025, reaching $24.6 billion (OMR 9.43 billion). This growth was mainly due to strong performance in industries outside of oil, according to official data.
Growth Details
The non-oil sector grew by 4.4% compared to the same time last year. It reached $18 billion (OMR 6.92 billion), helping to boost the country’s overall economy.
The oil sector, however, dropped slightly by 0.4% to $7.6 billion (OMR 2.92 billion).
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Income from crude oil fell 2.2% to $6.4 billion (OMR 2.45 billion).
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Natural gas income rose by 9.5% to $1.2 billion (OMR 475.3 million).
Government income dropped by 7% to $6.8 billion (OMR 2.6 billion) due to changes in global oil markets and Oman’s plan to reduce its dependence on oil.
Government spending increased by 4% to $7.2 billion (OMR 2.8 billion), mostly due to more money being spent on development projects.
For 2025, Oman expects to earn $29 billion (OMR 11.2 billion) and spend $30.7 billion (OMR 11.8 billion), which would create a deficit of $1.6 billion (OMR 620 million).
New Tax Plan
In May, Oman announced a new 5% personal income tax starting in 2028. It will only apply to people earning more than $109,091 (OMR 42,000) a year — about 1% of the population. Oman is the first Gulf country to introduce such a tax.
Oman Vision 2040
This tax is part of Oman’s long-term plan called Vision 2040, which aims to grow the private sector and reduce the country’s reliance on oil. The goal is to increase the share of non-oil income to 15% of the economy by 2030 and 18% by 2040.
Published: 8th July 2025
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