Oman’s Public Debt Drops to $36.7B Despite Lower Oil and Gas Income

Aug 18, 2025 at 7:05 AM

Oman’s Public Debt Drops to $36.7B Despite Lower Oil and Gas Income

Oman lowered its public debt to $36.7 billion (OMR 14.1 billion) by the end of the second quarter of 2025, compared to $37.5 billion (OMR 14.4 billion) a year earlier, even though oil and gas revenues declined, government data showed on Sunday.

Government Revenue

Total government revenue fell 6% to $15 billion (OMR 5.8 billion) in Q2 2025, down from $16.1 billion (OMR 6.2 billion) a year ago.
Oil income dropped 10% to $7.8 billion (OMR 3 billion) due to lower prices and weaker production.
Gas revenue slipped 6% to $2.3 billion (OMR 884 million).
Non-oil revenue slightly increased to $4.9 billion (OMR 1.9 billion).

Government Spending

Total spending rose 5% to $15.6 billion (OMR 6 billion) by June 2025, mainly from higher development costs.
Current spending grew to $10.7 billion (OMR 4.1 billion).
Development spending by ministries and civil units reached $1.8 billion (OMR 688 million), equal to 76% of the year’s budget.
The government paid $2 billion (OMR 749 million) in dues to the private sector and allocated $520 million (OMR 200 million) for debt payments.
Spending on education, health, housing, and welfare totaled $8.1 billion (OMR 3.1 billion), with education taking the largest share (52%).

Economic Growth

The IMF recently raised its forecast for Oman’s growth to 2.4% in 2025 and 3.7% in 2026, expecting oil recovery once OPEC+ lifts production cuts and steady growth in non-oil sectors.
Oman’s economy grew 2.5% year-on-year in Q1 2025, reaching $24.5 billion (OMR 9.4 billion), up from $24 billion (OMR 9.2 billion) in Q1 2024.
Growth was 1.7% in 2024, compared to 1.2% in 2023, despite OPEC+ limits on oil output.