{"id":7805,"date":"2026-01-05T13:27:00","date_gmt":"2026-01-05T09:27:00","guid":{"rendered":"https:\/\/omanet.om\/en\/news\/business\/surge-in-omans-non-hydrocarbon-income\/"},"modified":"2026-01-05T19:18:37","modified_gmt":"2026-01-05T15:18:37","slug":"surge-in-omans-non-hydrocarbon-income","status":"publish","type":"post","link":"https:\/\/omanet.om\/en\/news\/business\/surge-in-omans-non-hydrocarbon-income\/","title":{"rendered":"Surge in Oman\u2019s Non-Hydrocarbon Revenues: Key Opportunities for Investors and Entrepreneurs"},"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 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0;white-space:nowrap;overflow:hidden;text-overflow:ellipsis}\r\n.hitv3sogs{font-size:13px;color:rgba(255,255,255,.6);line-height:1.4;margin-top:3px;white-space:nowrap;overflow:hidden;text-overflow:ellipsis}\r\n.hitv3sogbl{display:none;flex-direction:column;gap:5px;margin-top:9px;align-self:flex-start}\r\n.hitv3sogbi{display:flex;align-items:center;font-size:11px;color:rgba(255,255,255,.55);font-weight:500}\r\n.hitv3sogct{position:relative;z-index:1;flex-shrink:0;display:flex;flex-direction:column;align-items:center}\r\n.hitv3sogbtn{display:inline-flex;align-items:center;gap:6px;padding:10px 24px;background:#dc2626;background-image:linear-gradient(180deg,rgba(255,255,255,.12) 0%,transparent 100%);color:#fff;font-size:14px;font-weight:700;border-radius:8px;white-space:nowrap;box-shadow:0 0 20px #dc262666;border:none;cursor:pointer;font-family:inherit;transition:filter .15s,transform .15s}\r\n.hitv3sogbtn:hover{filter:brightness(1.15);transform:scale(1.04)}\r\n.hitv3sogbr{font-size:9px;color:rgba(255,255,255,.18);text-align:center;margin-top:5px;letter-spacing:.1em;text-transform:uppercase}\r\n\/* \u2500\u2500 Compact horizontal: 380\u2013599px (like 320\u00d7100) \u2500\u2500 *\/\r\n@container (min-width:380px) and (max-width:599px){\r\n  .hitv3soga{padding:12px 22px;gap:12px;min-height:100px}\r\n  .hitv3sogh{font-size:16px}\r\n  .hitv3sogs{display:none}\r\n  .hitv3sogbtn{padding:7px 16px;font-size:11px}\r\n}\r\n\/* \u2500\u2500 Mobile\/card: < 380px (like 300\u00d7250) \u2500\u2500 *\/\r\n@container (max-width:379px){\r\n  .hitv3soga{flex-direction:column;align-items:center;justify-content:space-between;min-height:260px;padding:22px 22px;gap:10px}\r\n  .hitv3sogc{align-items:center;text-align:center}\r\n  .hitv3sogh{font-size:22px;white-space:normal}\r\n  .hitv3sogs{font-size:11px;white-space:normal}\r\n  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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: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><\/p>\n<p><strong>MUSCAT, JAN 5<\/strong> \u2013 Non-hydrocarbon revenues in Oman\u2014comprising taxes, levies, fees, and other income sources\u2014are showing a continued upward trend. This growth reflects the government&#8217;s ongoing efforts to decrease reliance on hydrocarbon revenue.<\/p>\n<p>The increase is particularly evident in anticipated collections from Value Added Tax (VAT) and excise taxes, which are projected to reach <strong>RO 735 million<\/strong> in 2026, marking an <strong>8%<\/strong> rise from the RO 680 million estimated for 2025. Similarly, corporate income tax revenues are set to rise to RO 684 million, a <strong>4.3%<\/strong> increase from the RO 656 million projected for 2025.<\/p>\n<p>Additionally, dividends amounting to <strong>RO 800 million<\/strong> from the Oman Investment Authority (OIA) remain a critical component of non-oil revenues, unchanged from the previous budget.<\/p>\n<p>Looking ahead, the introduction of Oman\u2019s Personal Income Tax (PIT) in 2028 is expected to provide a modest boost to revenue. As the first such tax in the Gulf Cooperation Council (GCC), PIT will target high-income earners at a flat rate of <strong>5%<\/strong> on annual incomes exceeding RO 42,000 (approximately $109,000). S&amp;P Global Ratings estimates that PIT could generate around <strong>RO 80 million<\/strong> in its first year, contributing roughly <strong>0.1%<\/strong> to GDP and supplementing existing tax revenues, which currently constitute about <strong>14%<\/strong> of total government income.<\/p>\n<p>Fiscal diversification remains essential to Oman\u2019s economic sustainability strategy, evidenced by a robust growth in non-hydrocarbon revenues over the past five years. Revenues have surged from approximately <strong>RO 2.7 billion<\/strong> in 2020 to <strong>RO 3.507 billion<\/strong> in 2024\u2014a near <strong>30%<\/strong> increase\u2014largely driven by higher VAT and excise tax collections, corporate taxes, and non-tax income from dividends and service charges.<\/p>\n<p>For the fiscal year 2025, non-hydrocarbon revenues are estimated at approximately <strong>RO 3.573 billion<\/strong>. This includes RO 680 million from VAT and excise taxes, RO 656 million from corporate income tax, RO 800 million in OIA-related dividends, and around RO 1.4 billion from various government fees.<\/p>\n<p>Despite these advancements, hydrocarbon revenues continue to dominate Oman\u2019s fiscal landscape. For FY 2026, oil and gas revenues are projected to comprise <strong>67%<\/strong> of total government revenues, which are budgeted at <strong>RO 7.7 billion<\/strong>, reflecting a <strong>1.4%<\/strong> increase from the RO 7.6 billion budgeted for 2025.<\/p>\n<p>According to KPMG, the projected hydrocarbon revenues of <strong>RO 7.7 billion<\/strong> for 2026 represent a <strong>5.8%<\/strong> decline from the preliminary figure of <strong>RO 8.2 billion<\/strong> in 2025, attributed to lower realized oil prices and production costs associated with Energy Development Oman and other producers. Oil revenues are expected to reach <strong>RO 5.7 billion<\/strong>, marking a <strong>10.2%<\/strong> decline from the previous year&#8217;s preliminary figure of <strong>RO 6.4 billion<\/strong>, based on a more conservative average oil price assumption of <strong>$60<\/strong> per barrel, down from <strong>$70<\/strong> in 2025.<\/p>\n<p>Conversely, gas revenues are budgeted at <strong>RO 1.9 billion<\/strong>, a <strong>10.4%<\/strong> increase over the previous year&#8217;s estimate of <strong>RO 1.7 billion<\/strong>, fueled by the signing of <strong>17 new<\/strong> gas sales agreements and annual price increases. Compared to the prior year\u2019s preliminary total of <strong>RO 1.8 billion<\/strong>, gas revenues are projected toincrease by approximately <strong>10%<\/strong>.<\/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% 100%,rgba(220,38,38,0.15),transparent 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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><strong>Special Analysis by Omanet | Navigate Oman&#8217;s Market<\/strong><\/p>\n<p>Oman&#8217;s continued <strong>diversification of non-hydrocarbon revenues<\/strong> presents significant opportunities for businesses, particularly in sectors benefiting from increased VAT and excise taxes, alongside a rising corporate income tax base. However, the reliance on oil revenues\u2014projected to remain at <strong>67%<\/strong> of total revenues\u2014poses a risk, especially as global prices fluctuate. <strong>Smart investors<\/strong> should consider strategizing towards sectors like renewable energy and digital services that align with the government&#8217;s fiscal sustainability goals while staying agile to adapt to potential regulatory changes with the introduction of a <strong>Personal Income Tax<\/strong>.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Non-hydrocarbon revenues in Oman are on the rise, reflecting efforts to diversify from oil dependence. For 2026, VAT and excise tax collections are projected at RO 735 million, an 8% increase from 2025. Personal Income Tax, starting in 2028, is expected to generate RO 80 million in its first year.<\/p>\n","protected":false},"author":5,"featured_media":7806,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[114],"tags":[3350,3351,161],"class_list":["post-7805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-diversification","tag-non-oil-revenues","tag-oman"],"jetpack_featured_media_url":"https:\/\/omanet.om\/wp-content\/uploads\/2026\/01\/3247555.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/7805","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\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/comments?post=7805"}],"version-history":[{"count":1,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/7805\/revisions"}],"predecessor-version":[{"id":7807,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/7805\/revisions\/7807"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media\/7806"}],"wp:attachment":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media?parent=7805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/categories?post=7805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/tags?post=7805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}