Saturday 27 / December / 2025
Muscat: The non-oil sectors in the Sultanate of Oman continue to strengthen their pivotal role in supporting economic growth and achieving financial sustainability, recording a gradual increase in their contribution to the gross domestic product during the implementation of the Tenth Five-Year Development Plan (2021-2025), reflecting the effectiveness of economic diversification policies and the progress of the objectives of the “Oman 2040” vision.
The Ministry of Economy reported that the contribution of non-oil sectors to the GDP at constant prices reached 73.3 percent by the end of the third quarter of 2025, compared to 72.5 percent in 2024.
The value added of non-oil activities also increased to about OMR21.0 billion by the end of the third quarter of 2025, compared to OMR20.4 billion during the same period in 2024.
Meanwhile, the real growth rate of these activities recorded 3.4 percent by the end of the third quarter of this year, compared to 4.2 percent in 2024.
Dr. Salem bin Abdullah Al Sheikh, the official spokesperson for the Ministry of Economy, said that economic diversification in the Sultanate of Oman continues to consolidate its position as a fundamental pillar of financial and economic sustainability, noting that non-oil revenues have witnessed remarkable growth during the past years in light of the continued recovery of economic activities.
He explained that the volume of non-oil revenues increased from about OMR2.7 billion in 2020 to OMR3.507 billion in 2024, while the approved non-oil revenues in the 2025 budget amounted to about OMR3.573 billion, an increase of 1.5 percent compared to the 2024 budget.
These revenues include OMR680 million from value-added tax and excise tax, OMR656 million from corporate income tax, OMR800 million from dividend distributions of companies affiliated with the Oman Investment Authority, in addition to OMR1.4 billion from various government fees.
He affirmed that the Sultanate of Oman continues to make progress in enhancing financial sustainability, raising the efficiency of public finances and the tax system, expanding the non-oil revenue base, in addition to diversifying project financing sources and promoting the attraction of technologies and investments with high added value to the economy.
Regarding foreign direct investment, he noted that the Sultanate of Oman has recorded continuous growth over the past years, supported by improved growth prospects, economic diversification, and a higher level of confidence following the credit rating upgrade.
The cumulative total of foreign direct investment increased by 18 percent during 2024 compared to 2023, and its cumulative total exceeded OMR30.3 billion by the end of the first half of 2025, achieving a growth rate of 12.8 percent compared to the same period in 2024.
He affirmed in a statement to the Oman News Agency that the positive performance of the non-oil sectors has maintained the continuity of the growth of the national economy in line with the targets set during the Tenth Five-Year Development Plan and the targets of the "Oman 2040" vision to reduce dependence on oil.
The national economy has gained resilience and the ability to overcome international challenges such as the slowdown in global economic growth and the exacerbation of inflation, in addition to the changes in energy markets that led to a reduction in crude oil production in accordance with the coordination between the countries of the "OPEC Plus" group, and the decline in the contribution of the oil sectors to the gross domestic product since 2023.
The contribution of these sectors turned from a positive growth of 8.6 percent in 2022 to 0.1 percent in 2023, then declined by 2.7 percent in 2024, and recorded 0.3 percent by the end of the third quarter of 2025 compared to the same period in 2024.
He added that the average GDP growth rate reached 3.4 percent during the first four years of the Tenth Five-Year Plan, approaching the targeted average growth rate of 3.5 percent, while the Ministry of Economy, the International Monetary Fund and the World Bank indicate that the GDP growth rate at the end of this year may range between 2.2 percent and 3 percent, and will continue to rise in the medium term during the next development plan.
He explained that the economic and investment policies during the Tenth Plan focused on laying strong foundations to ensure sustainable growth, enhance the productivity of the economy, and deepen its reliance on innovation and its integration with the global economy, thereby enhancing its competitiveness and ability to keep pace with technological developments and global changes and the opportunities and challenges they bring.
These policies achieved tangible progress in expanding the base of economic diversification, developing production structures, value chains, production and supply, and benefiting from local content, in addition to empowering the private sector, small and medium enterprises, and startups, and raising the contribution of private investment in high value-added economic sectors.
He pointed out that various economic activities received broad support from government support and stimulus packages, which pushed the economy towards recovery and growth, noting that boosting investment and development spending and operating many strategic projects had a multiplier effect on raising growth rates in non-oil sectors.
He explained that the national programs, projects and policies related to the priority of economic diversification and financial sustainability in the economy and development axis targeted, during the first phase of the “Oman 2040” vision, a group of sectors that represent a driving force for economic diversification and other sectors that are integrated and supportive of the sectors of economic diversification.
The criteria for selecting the specific sectors as pillars of economic diversification were based on their ability to expand and grow, their contribution to financial sustainability, the provision of job opportunities, the support for the growth of other sectors and the increase of non-oil exports of goods and services.
He pointed out that the National Economic Diversification Programme 'Tanwee' has contributed to developing production structures, maximising added value and increasing returns in promising economic sectors such as manufacturing, transport and logistics, tourism, fisheries and mining.
The commencement of the Integrated Economic Cluster Project for cold chains in the Special Economic Zone of Duqm represents a qualitative leap in developing supply chains within five integrated economic clusters that will be implemented, which aim to promote balanced development in the governorates, exploit their competitive advantages and attract investments to the sectors targeted in the economic diversification strategy.
He stated that the first phase of implementing Oman Vision (2021-2025) succeeded in bringing about a positive transformation in the macroeconomic and business environment, and consolidating the foundations of financial sustainability by strengthening the state’s financial position, raising the credit rating, increasing the efficiency of public spending, rationalizing spending, and reducing public debt to safe limits.
The Sultanate of Oman also made progress in diversifying revenue sources, stimulating the private sector, and attracting local and foreign direct investments to expand the financing of new projects and provide job opportunities.
The official spokesperson for the Ministry of Economy affirmed that the prospects for economic diversification during the Eleventh Five-Year Plan 2026-2030 remain supportive of achieving the targets of financial and economic sustainability, while continuing to achieve national targets and strengthening international cooperation and strategic partnerships with sisterly and friendly countries.
This supports the Sultanate of Oman’s position as an attractive destination for investment in many areas that increase the integration of the national economy with its global counterpart and enhance joining global value, production and supply chains, such as renewable energy, the digital economy, logistics and e-commerce.
