Oman's GDP Grows 5.1% as Petroleum Output Lifts Quarterly Expansion
Preliminary data put second-quarter GDP at about $25.8bn, with petroleum activities up 14.7% while industrial output slipped.
Tariq Benali Tariq Benali covers business and corporate news across the UAE and MENA for Anecdoted, tracking the deals, leadership moves and regulatory shifts behind the region's companies. tariq@anecdoted.com
Oman's gross domestic product at constant prices reached about $25.8bn (OMR 9.9bn) in the three months to June, according to preliminary figures from the National Centre for Statistics and Information. The same period a year earlier came in at $24.5bn (OMR 9.4bn). The 5.1% increase was carried almost entirely by hydrocarbons.
Petroleum activities climbed 14.7%, to roughly $8.9bn (OMR 3.4bn) from $7.8bn (OMR 3bn). Strip that out and the picture changes.
Non-petroleum activities edged up 0.7%, to about OMR 700m ($1.8bn) from $1.7bn. Among the categories the agency reports separately, services — the largest non-oil block — expanded 1.5% to approximately $11.9bn (OMR 4.6bn). Agriculture and fishing grew 2.3% to $846.6m (OMR 325m), from $827.8m (OMR 317.8m). Industrial activities moved the other way, contracting 1.5% to around $4.9bn (OMR 1.9bn).
Rating affirmed as forecasts shift
S&P Global Ratings held Oman's long-term sovereign rating at BBB- and its short-term rating at A-3, both with a stable outlook. The agency lifted its projection for real GDP growth in 2026 to 3.5%, up from 1.6%. It cited improved fiscal and external positions and a stronger economic outlook. Sustained higher oil prices and a planned increase in hydrocarbon supply, set against geopolitical uncertainty in the Middle East, underpin the revision. Oman has held investment grade since S&P moved it to BBB- from BB+ in September 2024.
Public finances
S&P expects a fiscal surplus of about 4.8% of GDP in 2026, easing to roughly 2.2% in 2027. Government debt is projected to reach 30.2% of GDP by the end of 2026. A positive net government asset position should persist over the medium term.
On the external side, a current-account surplus of about 3.5% of GDP is forecast for 2026, narrowing to around 1.8% by 2029. Foreign-exchange reserves stood at roughly $19.5bn at the end of June 2026.
Non-oil activity grew about 1.3% in the first half of 2026. Trade, information technology and financial services are supporting diversification, and logistics has been expanding: cargo volumes at the ports of Salalah and Sohar rose 15% and 52% respectively during the half.
Reserve levels have moved lower since. The central bank's statistical bulletin put foreign reserves at $18.9bn (OMR 7.29bn) at the end of July 2026, a 2.5% decline from $19.5bn (OMR 7.5bn) a month earlier.
