RO 50M Royal Allocation: Boosting Investment, Job Creation, and Fiscal Sustainability in Oman
Muscat: A generous allocation of RO 50 million, in line with Royal Directives commemorating the sixth anniversary of His Majesty Sultan Haitham bin Tarik’s accession, will bolster economic and investment-oriented projects aimed at creating employment opportunities for citizens and enhancing the financial sustainability of the Sultanate of Oman.
This funding for economic and investment initiatives stems from an increase in the budget for the governorates’ development program under the Eleventh Five-Year Development Plan (2026–2030), which has risen from RO 220 million to RO 270 million.
Oman’s 2026 budget marks a strategic transition of the national economy from a phase of financial stability to controlled growth. The current strategy emphasizes developmental and investment spending while maintaining fiscal discipline, thus supporting the sustainability of public finances and fortifying the economy’s resilience to external shocks.
Preliminary results for the 2025 budget indicate a 23% reduction in the annual deficit, decreasing from RO 620 million to RO 480 million. Public spending rose by approximately RO 1 million to accommodate social and economic needs, resulting in total public spending reaching about RO 12.240 billion by the end of 2025, a 4% increase compared to initial budget allocations. Moreover, Oman has received upgrades in sovereign ratings to investment grade from all agencies, reflecting improvements in public finance indicators and the nation’s external financial standing.
In recent comments, Dr. Nasser bin Rashid al Maawali, Under-Secretary of the Ministry of Economy, stated that Oman has fortified its social, economic, and financial stability over the past six years while continuing to pursue sustainable development under the Eleventh Five-Year Plan. He emphasized that current economic conditions allow for enhanced flexibility in planning.
The State Budget Guide for the current fiscal year outlines that Oman’s policy framework focuses on fiscal sustainability, economic diversification, and sustainable social development. The financial structure of the Eleventh Five-Year Development Plan serves as a foundation for the government’s commitment to keeping public debt within safe limits, diversifying non-oil revenues, improving public spending efficiency, and financing key development projects. This includes maintaining subsidies for essential goods and services and strengthening the social protection system to ensure social and economic stability.
The financial framework aims to balance fiscal sustainability with economic growth, intending to increase the share of non-oil revenues to approximately 37.4% of total public revenues. Current expenditures are projected to average RO 8.985 billion annually throughout the Plan period, with about RO 1.3 billion allocated each year for development spending and economic transformation initiatives. Additionally, average annual allocations for the social protection system are anticipated to be around RO 668 million.
Special Analysis by Omanet | Navigate Oman’s Market
The RO 50 million allocation for economic and investment projects marks a pivotal shift toward sustainable growth, emphasizing job creation and financial resilience in Oman. For businesses, this opens new avenues for investment and development, particularly in sectors that support economic diversification and public finance stability. Smart investors should focus on industries aligning with government priorities outlined in the Eleventh Five-Year Development Plan, capitalizing on the strengthened economic landscape while remaining mindful of the balancing act between fiscal discipline and growth.
