Oman’s Budget 2026 Forecasts RO 530m Deficit Amid RO 11.4bn Revenues: What Investors and Business Owners Need to Know
Muscat: On Thursday, the Ministry of Finance (MoF) announced the details of Oman’s 11th Five-Year Development Plan, representing a significant step forward in achieving the goals set out in Oman Vision 2040.
The plan emphasizes a strategy of financial sustainability, aiming to keep public debt within safe limits while broadening the sources of non-oil revenue. It also prioritizes social development, environmental sustainability, improved governance and institutional efficiency, economic decentralization across the governorates, and the enhancement of labor market efficiency and employment opportunities.
Implementation will follow a flexible framework consisting of three phases: the first covering 2026-2027, the second spanning 2028-2029, and a complementary phase in 2030.
The Eleventh Five-Year Development Plan aims for economic growth of approximately 4 percent at constant prices over its duration.
For the year 2026, the State’s General Budget revenues are projected at around RO 11.447 billion, assuming an average oil price of $60 per barrel. This figure marks a 2.4 percent increase compared to the 2025 approved revenues. Public expenditure is estimated at roughly RO 11.977 billion, a 1.5 percent rise from the 2025 budget.
The budget deficit for 2026 is forecasted to decrease by 14.5 percent, reaching about RO 530 million. This deficit constitutes 4.6 percent of total revenues and 1.3 percent of the gross domestic product.
Additionally, the Minister of Finance highlighted that during the Tenth Five-Year Plan (2021–2025), the State’s General Budget benefited from additional revenues amounting to RO 11.291 billion, driven by improved oil prices. The total approved funding for all governorates by the end of 2025 is set at RO 983 million.
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Oman’s 11th Five-Year Development Plan signals a strategic shift toward financial sustainability and economic diversification, reducing reliance on oil revenues while promoting social and environmental goals. For businesses and investors, this creates opportunities in non-oil sectors and regional markets, but also demands adaptability to new governance and labor market reforms. Smart entrepreneurs should align with government priorities on decentralized growth and innovation to capitalize on emerging sectors.
