Public Debt Drops to RO 14.1 Billion by Q2 2025: What This Means for Oman’s Investment Climate and Business Growth
MUSCAT — The Sultanate of Oman saw a reduction in public debt by the end of the second quarter of 2025, with total debt reaching RO 14.1 billion, down from RO 14.4 billion at the same time in 2024.
By the end of Q2 2025, the Ministry of Finance had disbursed over RO 749 million to the private sector through the financial system, supported by full documentation. This underscores the ministry’s commitment to settling private sector dues within an average timeframe of five working days.
Public revenue for Q2 2025 amounted to RO 5,839 million, representing a 6% decline from RO 6,197 million in Q2 2024. This decrease is mainly attributed to a reduction in hydrocarbon revenues.
Net oil revenue stood at RO 3,018 million by the end of Q2 2025, reflecting a 10% drop from RO 3,362 million in the same quarter the previous year, due to lower average oil prices and production levels. Similarly, net gas revenue decreased by 6%, reaching RO 884 million compared to RO 943 million in Q2 2024.
Current revenue, however, experienced a slight increase of 2%, totaling RO 1,928 million compared to RO 1,882 million in the corresponding period of 2024.
Public expenditure reached RO 6,098 million by the end of Q2 2025, marking a 5% increase or RO 292 million more than the RO 5,806 million recorded in Q2 2024. This rise is mainly driven by higher development spending.
Current expenditure slightly declined by 1%, totaling RO 4,118 million compared to RO 4,065 million in the same period last year.
Development expenditure by ministries and government units reached RO 688 million by the end of Q2 2025, accounting for 76% of the total RO 900 million allocated for development projects in 2025. This increase is attributed to the accelerated progress of ongoing development initiatives.
Contributions and other expenses amounted to RO 1,161 million, a 7% increase or RO 73 million more than the RO 1,088 million recorded in Q2 2024. Subsidies included RO 339 million for the electricity sector, RO 289 million for social protection, and RO 44 million for oil products.
Additionally, RO 200 million was allocated to the future debt obligations budget item.
— ONA
تحلیل ویژه از عمانت | بازار عمان را کشف کنید
عمان reduction in public debt alongside the Ministry of Finance’s prompt payments to the private sector signal stronger fiscal management and improved liquidity for businesses. However, the decline in hydrocarbon revenues presents ongoing challenges, emphasizing the need for diversification and investment in non-oil sectors. Smart investors should closely monitor government development projects, as increased development expenditure offers growth opportunities in infrastructure and public services.
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