{"id":7744,"date":"2026-01-03T16:49:00","date_gmt":"2026-01-03T12:49:00","guid":{"rendered":"https:\/\/omanet.om\/en\/news\/economy\/oman-2026-borrowing-plan-explained\/"},"modified":"2026-01-04T07:28:20","modified_gmt":"2026-01-04T03:28:20","slug":"oman-2026-borrowing-plan-explained","status":"publish","type":"post","link":"https:\/\/omanet.om\/en\/news\/economy\/oman-2026-borrowing-plan-explained\/","title":{"rendered":"Oman&#8217;s 2026 Borrowing Plan Surpasses RO 530m Budget Deficit: What It Means for Investors and Business Growth"},"content":{"rendered":"<style>\r\n@keyframes hitv3sog-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitv3sog-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitv3sog-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes hitv3sog-badge{from{opacity:0;transform:scale(0.8)}to{opacity:1;transform:scale(1)}}\r\n<\/style><style>\r\n.hitv3sogw{container-type:inline-size;width:100%;max-width:970px;margin:0 auto;box-sizing:border-box}\r\n.hitv3soga{display:flex;flex-direction:row;align-items:center;justify-content:space-between;width:100%;box-sizing:border-box;text-decoration:none;color:#fff;font-family:-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,system-ui,sans-serif;position:relative;overflow:hidden;cursor:pointer;background:linear-gradient(135deg,#111118 0%,#080808 100%);border:1.5px solid rgba(255,255,255,0.08);border-radius:14px;gap:20px;padding:20px 40px;transition:border-color .2s}\r\n.hitv3soga:hover{border-color:#dc262688}\r\n.hitv3sogg1{position:absolute;inset:0;background:radial-gradient(ellipse at 50% 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.hitv3sogbl{display:flex;align-self:center;text-align:left}\r\n  .hitv3sogbtn{width:100%;justify-content:center;padding:12px 20px}\r\n}\r\n\/* \u2500\u2500 Wide: >= 600px (leaderboard style) \u2500\u2500 *\/\r\n@container (min-width:600px){\r\n  .hitv3soga{min-height:90px}\r\n}\r\n<\/style><!-- HiT Land Banner \u2014 Container Query Responsive -->\r\n<div class=\"hitv3sogw\">\r\n<a class=\"hitv3soga\" href=\"https:\/\/hit.land\/services\/web-app-development\" target=\"_blank\" rel=\"noopener nofollow\" style=\"animation:hitv3sog-fadein 0.7s ease both;animation-delay:0s;\">\r\n  <div class=\"hitv3sogg1\" style=\"animation:hitv3sog-glow 3s ease-in-out infinite;\"><\/div>\r\n  <div class=\"hitv3sogg2\"><\/div>\r\n  <div class=\"hitv3soggl\" style=\"animation:hitv3sog-shimmer 3s ease-in-out infinite;\"><\/div>\r\n  \r\n  <div class=\"hitv3sogc\">\r\n    \r\n    <div style=\"display:inline-flex;align-self:flex-start;align-items:center;gap:6px;background:rgba(255,255,255,0.08);border:1px solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitv3sog-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OMAN OFFER<\/span><\/div>\r\n    <div class=\"hitv3sogh\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.15s;\">Websites For <span style=\"color:#dc2626;\">Omani Businesses.<\/span><\/div>\r\n    <div class=\"hitv3sogs\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.3s;\">Empower your brand with custom digital solutions designed for high conversion and market dominance.<\/div>\r\n    <div class=\"hitv3sogbl\"><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Responsive designs built for growth<\/span><\/div><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Fast loading with smart automation<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitv3sogct\">\r\n    <button class=\"hitv3sogbtn\" style=\"animation:hitv3sog-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Build Your Free Website <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitv3sogbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div>\n<p>MUSCAT: Dr. Saeed bin Mubarak al Muharami, Professor of Finance at Sultan Qaboos University, clarified the distinction between net income and net cashflows in relation to Oman\u2019s state budget. He explained that the figures typically presented during the budget announcement are derived from the income statement, which records revenues and expenses, including interest payments on debt as part of debt service costs.<\/p>\n<p>Dr. Al Muharami highlighted that accounting involves multiple financial statements, but two are crucial for understanding the budget: the income statement and the cashflow statement. The income statement records revenues and expenses, while the cashflow statement tracks actual cash inflows and outflows, such as debt principal repayments, which are not reflected in the income statement. He emphasized the difference between interest due on debt and the principal installment payments that must be made.<\/p>\n<p>Addressing a common question about Oman\u2019s projected 2026 budget deficit of RO 530 million, Dr. Al Muharami explained why the government plans to borrow more than this amount. The RO 530 million figure appears on the income statement; however, the cashflow statement \u2014 reflecting actual cash movements \u2014 shows a much larger deficit of RO 2.292 billion. This is due to RO 1.762 billion in debt principal repayments falling due in 2026.<\/p>\n<p>To manage these obligations, the government intends to raise approximately RO 990 million through external borrowing and RO 902 million via domestic borrowing, covering both the RO 1.762 billion in principal repayments and the RO 530 million budget deficit. Additionally, around RO 400 million will be drawn from state reserves to finance the remaining shortfall.<\/p>\n<p>Dr. Al Muharami described these measures as a proactive financial strategy based on typically conservative, worst-case scenario forecasts, expressing optimism that actual results will be more favorable.<\/p>\n<p><style>\r\n@keyframes hitl8gak-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitl8gak-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitl8gak-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes hitl8gak-badge{from{opacity:0;transform:scale(0.8)}to{opacity:1;transform:scale(1)}}\r\n<\/style><style>\r\n.hitl8gakw{container-type:inline-size;width:100%;max-width:970px;margin:0 auto;box-sizing:border-box}\r\n.hitl8gaka{display:flex;flex-direction:row;align-items:center;justify-content:space-between;width:100%;box-sizing:border-box;text-decoration:none;color:#fff;font-family:-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,system-ui,sans-serif;position:relative;overflow:hidden;cursor:pointer;background:linear-gradient(135deg,#111118 0%,#080808 100%);border:1.5px solid rgba(255,255,255,0.08);border-radius:14px;gap:20px;padding:20px 40px;transition:border-color .2s}\r\n.hitl8gaka:hover{border-color:#dc262688}\r\n.hitl8gakg1{position:absolute;inset:0;background:radial-gradient(ellipse at 50% 0%,rgba(220,38,38,0.35),transparent 65%);pointer-events:none;z-index:0}\r\n.hitl8gakg2{position:absolute;bottom:0;left:0;right:0;height:45%;background:radial-gradient(ellipse at 50% 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitl8gak-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OFFER<\/span><\/div>\r\n    <div class=\"hitl8gakh\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.15s;\">Your Website <span style=\"color:#dc2626;\">Should Sell.<\/span><\/div>\r\n    <div class=\"hitl8gaks\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.3s;\">Custom-built websites with smart automation & AI-powered features.<\/div>\r\n    <div class=\"hitl8gakbl\"><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>SEO-optimized & lightning fast<\/span><\/div><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Smart features built for your business<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitl8gakct\">\r\n    <button class=\"hitl8gakbtn\" style=\"animation:hitl8gak-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Get Free Consultation <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitl8gakbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div><br \/>\n<\/p>\n<p>Special Analysis by Omanet | Navigate Oman&#8217;s Market<\/p>\n<p>The distinction between <strong>net income and net cashflows<\/strong> in Oman&#8217;s 2026 budget reveals that businesses must carefully track cash movements, not just accounting profits, to gauge economic health. The government&#8217;s plan to borrow substantially to cover both deficits and debt repayments highlights <strong>increased fiscal pressure<\/strong>, which could signal tighter liquidity conditions ahead. <strong>Smart investors and entrepreneurs should consider the potential impact of elevated borrowing on interest rates and public spending, positioning themselves to navigate a possibly constrained financial environment.<\/strong><\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dr Saeed bin Mubarak al Muharami from Sultan Qaboos University explains the difference between net income and net cashflows in Oman&#8217;s 2026 budget. The expected RO 530 million deficit on the income statement contrasts with a RO 2.292 billion net cashflow deficit due to debt principal repayments. The government plans external and domestic borrowing plus drawing from reserves to cover these needs.<\/p>\n","protected":false},"author":11,"featured_media":7745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[482],"tags":[3329,171,161],"class_list":["post-7744","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-budget","tag-finance","tag-oman"],"jetpack_featured_media_url":"https:\/\/omanet.om\/wp-content\/uploads\/2026\/01\/3245362.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/7744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/comments?post=7744"}],"version-history":[{"count":1,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/7744\/revisions"}],"predecessor-version":[{"id":7746,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/7744\/revisions\/7746"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media\/7745"}],"wp:attachment":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media?parent=7744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/categories?post=7744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/tags?post=7744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}