Oman’s public revenue at the end of August 2024 amounted to OMR8,106 million, with an increase of OMR183 million compared to the same period in 2023. This increase is mainly due to a rise in net oil revenue, totaling OMR4,649 million and up by 12% from 2023. The average realized oil price was USD 83 per barrel, with an average production of 1,001,000 barrels per day. The Energy Development Oman (EDO) contributed to the efficient collection of oil revenue and cash flow management. Net gas revenue decreased to OMR1,213 million at the end of August 2024 due to changes in revenue collection methodology.
Current revenue at the end of August 2024 reached OMR2,230 million, down by OMR104 million from 2023. Public spending amounted to OMR7,659 million, increasing by OMR509 million from 2023. Current expenditure of civil ministries decreased slightly to OMR5,434 million. Development expenditure of ministries and government units totaled OMR735 million, representing 82% of the allocated OMR900 million for 2024. Contributions and other expenses rose by 58% to OMR1,440 million in 2024 due to the implementation of the social protection system.
The OECD’s Economic Outlook report projected global growth to stabilize at 3.2% in both 2024 and 2025, with monetary policy easing supporting interest-rate-sensitive expenditures in 2025. The Brent crude oil spot price is expected to average USD 83 per barrel in 2024 and USD 84 per barrel in 2025, according to the U.S. EIA’s Short-Term Energy Outlook. Standard & Poor’s Global Ratings upgraded Oman’s credit rating to “BBB-” with a stable outlook in September 2024, attributing the improvement to financial reforms and reduced public debt levels.
Oman’s measures to improve public finances through economic reforms have led to financial surpluses and a restored balance between revenues and spending. The government’s focus on reducing public debt and improving governance of state-owned enterprises has also contributed to positive outcomes. S&P expects Oman’s general budget to generate financial surpluses of 1.9% during 2024-2027, with an average annual GDP growth of 2%. The current account is projected to record financial surpluses averaging 1.2% of GDP during the same period.
