Oman’s RO 11.9bn 2026 State Budget: What Increased Public Spending Means for Investors and Businesses
Muscat: The State’s General Budget for the fiscal year 2026 is set at RO 11.977 billion, underscoring the government’s ongoing dedication to maintaining public services, ensuring economic stability, and promoting development priorities.
Within the budget, total current expenditure is projected at RO 8.771 billion. Of this, RO 3.16 billion is allocated to defence and security, while spending by ministries and government units totals RO 4.7 billion. Public debt servicing is estimated at RO 911 million.
Development expenditure is planned at RO 1.3 billion for 2026, with RO 900 million designated for civil ministries and government units. Additionally, RO 400 million will fund economic transformation projects focused on diversification and fostering long-term growth.
Contributions and other expenses amount to RO 1.906 billion, accounting for 16 percent of total public spending. Key allocations include RO 614 million for the Social Protection System, RO 509 million for electricity sector subsidies, and RO 300 million reserved for future debt obligations.
Further budget provisions include RO 170 million for water and sewage sector subsidies, RO 82 million for transport sector subsidies, RO 75 million to support development and housing loan interest subsidies, and RO 71 million for waste sector subsidies. Subsidies for oil products are set at RO 35 million, with an equal amount allocated for contributions to domestic, regional, and international institutions. Food item subsidies stand at RO 15 million.
The 2026 budget framework strikes a balance between fiscal discipline, fulfilling social commitments, and advancing economic transformation in alignment with Oman Vision 2040.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s 2026 budget underscores a strategic balance between fiscal discipline and economic transformation, with substantial allocations for defence, social protection, and key subsidies ensuring stability. The prioritization of RO 400 million towards economic diversification projects signals strong government commitment to long-term growth beyond oil dependency, presenting smart investors and entrepreneurs with emerging opportunities in non-oil sectors aligned with Oman Vision 2040. However, careful attention to public debt and subsidy management remains critical to mitigate financial risks.
