Oman’s Non-Oil GDP to Reach RO 28.7 Billion in 2025: Key Growth Insights for Investors and Entrepreneurs
MUSCAT, MARCH 30 — Oman’s economy demonstrated steady growth at the close of 2025, with the non-oil sectors emerging as the key drivers of expansion. This performance underscores the Sultanate’s ongoing commitment to economic diversification, despite facing softer oil prices and mixed external economic signals.
The real gross domestic product (GDP) reached RO 39.30 billion, reflecting a 2.4 percent increase at constant prices by the end of the fourth quarter of 2025. This growth was predominantly fueled by heightened activity outside the hydrocarbons sector.
According to a monthly bulletin from the Ministry of Economy, non-petroleum sectors continued to outperform oil-related activities, highlighting significant structural strides in diversifying Oman’s economic base.
Non-oil GDP rose robustly by 3.1 percent to RO 28.70 billion, while petroleum-related activities grew at a slower rate of 1.1 percent, reaching RO 12.02 billion. The expansion was supported by strong performances in manufacturing, logistics, tourism, and services.
Inflation remained low and stable, averaging 1.69 percent during January and February 2025/2026, thereby sustaining household consumption and facilitating business planning.
Foreign direct investment (FDI) stocks increased by 8.1 percent year-on-year to RO 31.38 billion by the end of the fourth quarter of 2025, reflecting sustained investor confidence in Oman’s long-term economic outlook. However, FDI inflows saw a sharp decline of 33.7 percent, dropping to RO 2.36 billion, signaling short-term caution amid global economic uncertainties and tighter financial conditions.
The oil market experienced downward pressure, with the average crude price falling by 13.1 percent to $63.3 per barrel by the end of February 2026, driven by softer global demand and increased supply.
Foreign trade data painted a mixed picture. While the trade balance recorded a surplus of RO 255.9 million at the end of January 2026, this represented a notable 51.5 percent contraction compared to the same period in the previous year. Imports rose by 10.9 percent to RO 1.58 billion, fueled by higher domestic demand and ongoing project activities. Meanwhile, non-oil exports grew by 15.3 percent to RO 613 million, highlighting progress in export diversification.
Overall, Oman’s economic data points to a resilient growth trajectory led by non-oil sectors, even as external challenges such as weaker oil prices and reduced investment inflows persist. Maintaining this momentum in non-oil industries will be crucial for the Sultanate’s medium-term economic outlook.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s steady GDP growth driven by a 3.1% rise in non-oil sectors signals bold strides in economic diversification, presenting smart investors with fertile opportunities in manufacturing, logistics, tourism, and services. However, the sharp drop in FDI inflows and softer oil prices highlight short-term risks from global uncertainties, urging businesses to prioritize resilient, innovation-led strategies that capitalize on domestic demand and export diversification trends.
