Muscat, the capital of Oman, saw continued growth in the Sultanate’s GDP in the first quarter of this year, driven largely by non-oil activities. The Ministry of Economy reported that non-oil activities contributed significantly to the GDP, with agriculture, forestry, fishing, industrial activities, and service activities all showing growth compared to the same period in 2023. These non-oil sectors represented a substantial portion of the GDP at both constant and current prices.
The transportation and storage sector continued its positive trajectory with a real growth of 7.8 percent during the first quarter, contributing 6.4 percent to the GDP. The construction sector also showed signs of recovery, recording a growth of 2.7 percent after a decline in the previous year. Additionally, the wholesale and retail trade sector, as well as financial and insurance activities, saw growth and increased their contribution to the GDP.
However, oil activities witnessed a decline of 2.4 percent during the first quarter, partly due to a decrease in oil production and crude oil activity. Despite this, the Ministry of Economy highlighted the good performance of non-oil sectors, which achieved a real growth of 4.5 percent compared to the previous year, balancing the effects of the decline in oil activities and contributing to an overall GDP growth rate of 1.7 percent.
Looking ahead, the Tenth Five-Year Plan aims to further boost the contribution of key sectors such as transport and logistics, tourism, fisheries, agriculture, mining, and education and scientific research. The plan sets targets for each sector to contribute a specific percentage to the overall GDP by 2025. The Ministry of Economy is optimistic about the prospects for economic growth, forecasting a continued rise in the GDP growth rate supported by the momentum in non-oil sectors and the expected recovery of oil activities in the coming period.
Overall, the first quarter economic growth data reflects the positive performance of non-oil sectors in the Sultanate of Oman, contributing to a balanced GDP growth rate despite challenges in the oil sector. The government’s focus on diversifying the economy and supporting key sectors such as transportation, construction, and wholesale and retail trade is expected to drive continued growth and economic stability in the coming years. With a strategic plan in place, Oman is well-positioned to navigate challenges and capitalize on opportunities for sustainable economic development.
