As the Sultanate of Oman commemorates January 11th, the anniversary of His Majesty Sultan Haitham bin Tarik’s accession, the nation stands as a testament to ambitious economic reform and a clear vision for the future. The focus remains firmly on building a competitive Omani economy, one that is sustainable, investment-friendly, and underpinned by robust legislation and forward-looking policies. This commitment is powerfully demonstrated by the recent launch of the Eleventh Five-Year Development Plan (2026–2030), signaling a significant shift from economic recovery to a period of substantial growth and expansion.
Strong Economic Performance and Diversification
Oman’s economic trajectory has been demonstrably positive, with a strong emphasis on diversifying away from oil dependence. Non-oil sectors are now the primary drivers of growth and financial stability, a direct result of the successful implementation of policies aligned with Oman Vision 2040. By the third quarter of 2025, these sectors contributed an impressive 73.3% to the nation’s GDP at constant prices, a notable increase from 72.5% in the previous year. This shift highlights the effectiveness of the Sultanate’s long-term strategy.
Key Economic Indicators
The nation’s commitment to economic freedom has also been recognized internationally. Oman maintained a solid 58th global ranking in the 2025 Index of Economic Freedom, bolstered by reforms designed to improve the business environment and enhance regulatory efficiency. GDP at constant prices experienced a growth of 2.2%, reaching OMR 28.69 billion, with non-oil activities contributing a substantial 3.4% to this increase, while oil activities saw modest growth of 0.3%. Furthermore, GDP at current prices reached OMR 31.07 billion, with non-oil activities increasing by 3.5%.
Positive trade balances and increased foreign investment further underscore the strength of the Omani economy. A surplus of OMR 4.69 billion was recorded in the trade balance by the end of October 2025, and foreign direct investment (FDI) grew by a significant 12.8%, reaching OMR 30.28 billion by the second quarter of 2025. Crucially, inflation has been kept in check, averaging just 0.9% until November 2025, reflecting prudent economic management and price stability.
Financial Markets and Credit Rating Upgrades
The Muscat Stock Exchange (MSX) has experienced a period of remarkable growth, demonstrating increased investor confidence. In 2025, the market capitalization exceeded OMR 32.2 billion, a substantial 60% increase compared to 2020. Trading value also saw an extraordinary surge, increasing by over 1,000% to surpass OMR 5 billion, driven by market reforms and the introduction of innovative investment platforms.
Oman’s dedication to financial discipline has been rewarded with upgrades from all three major credit rating agencies to investment-grade status. These upgrades are a testament to the Sultanate’s improved economic outlook and responsible fiscal policies:
- Standard & Poor’s: BBB- (Stable)
- Moody’s: Baa3 (Stable)
- Fitch: BBB- (Stable)
Embracing Innovation and the Digital Economy
Recognizing the importance of technological advancement, Oman is actively investing in artificial intelligence (AI) and digital transformation. Pilot projects are underway in key sectors including healthcare, the judiciary, cybersecurity, education, and public services. This commitment to innovation is fostering a vibrant startup ecosystem, with 205 innovative Omani startups now operating, collectively valued at USD 395 million and providing 549 jobs for Omani youth.
Oman’s progress in the digital realm is further evidenced by its international rankings: 1st globally in Cybersecurity Readiness, 41st in E-Government Development, and 45th in Government AI Readiness. The digital economy is already making a significant contribution to GDP, expected to approach 3% by the end of 2025, with an ambitious target of 10% by 2040. This focus on economic diversification is crucial for long-term sustainability.
Investment and Sectoral Growth
The Oman Investment Authority (OIA) has seen its assets grow to OMR 21 billion, contributing over OMR 4.4 billion to the state budget during the Tenth Plan. The Oman Future Fund has also approved investments in 164 projects, totaling OMR 462 million. Development approvals for the country’s governorates reached OMR 983 million by the end of 2025, a significant increase from OMR 285 million in 2021, demonstrating a commitment to balanced regional development.
Cumulative investments in special economic zones, free zones, and industrial cities have exceeded OMR 22 billion. The ports and logistics sector is experiencing particularly strong growth, led by ASYAD Group, which has expanded its international presence and attracted OMR 2.41 billion in FDI. Specific sectors are flourishing, including:
- Industry: 7% annual growth; exports nearing OMR 7 billion
- Tourism: 2.83 million visitors; OMR 1.99 billion total output
- Mining: New concession areas and agreements boosting sector potential
- Renewable Energy: Contribution reached 11.5%, targeting 30% by 2030
The Eleventh Five-Year Plan: A Roadmap for the Future
Dr. Nasser bin Rashid Al Maawali, Undersecretary of the Ministry of Economy, highlighted the transformative shift in Oman’s economic and financial performance during the Tenth Five-Year Plan, noting a 14% GDP growth since 2021 and a reduction in public debt to safe levels. The Eleventh Five-Year Plan builds on this momentum, aiming for:
- Average GDP growth of 4%
- Inflation below 2%
- Private sector contribution of 56%
- Investment-to-GDP ratio of 28%
- Non-oil growth of 4%
The plan prioritizes key sectors like manufacturing, tourism, and the digital economy, while also emphasizing economic decentralization, sustainability, good governance, and job creation for Omani citizens. This strategic approach to Oman’s economic future is designed to ensure long-term prosperity and resilience.
Under the wise leadership of His Majesty Sultan Haitham bin Tarik, the Sultanate of Oman is successfully translating its vision into tangible achievements, establishing a strong foundation for a diversified, resilient, and prosperous future for generations to come. The ongoing reforms and strategic investments position Oman as an increasingly attractive destination for foreign investment and a key player in the regional economy.
