The World Bank has projected that Oman’s economy will grow by 2.4% in FY26, driven primarily by the recovery of the non-oil sector and ongoing government reforms.
The report highlighted that the nation is laying the groundwork for sustainable development by diversifying its economy and enhancing the business environment.
The Sultanate’s neighbours, the UAE and KSA, are also expected to maintain positive growth rates as Abu Dhabi maintains a similar rate of growth at 2.4% and Riyadh 3.1% in FY26.
Oman’s Reforms: IFC Oman
Oman has made notable progress in its efforts to reduce reliance on oil revenues, citing the World Bank’s June 2026 report.
The non-oil economy is expected to benefit from increased investment in infrastructure, tourism, and manufacturing, aligning with the government’s Vision 2040 strategy aimed at economic diversification.
Global Slowdown
The Bank’s report mapped a broad slowdown in global growth.
The report highlighted the barriers to growth in FY26: “sharp increases in energy prices, renewed inflationary pressures, and fuelled expectations of tighter monetary policy.”
The WB forecasts that growth will slow from 2.9% in FY25 to 2.5% in FY26: the lowest annual rate since Covid-19.Â
2026-2027 Recovery
Global growth is projected to firm between FY27 and FY28, as energy supplies recover, monetary easing resumes, and trade strengthens.
Risks to the outlook could change depending on any renewed escalation of hostilities or prolonged disruptions to commodity flows.
Global growth could fall to just 1.3% in FY26 if risks materialise.
The Bank’s assessment suggests that ongoing reforms and investments will be essential for Oman to realise Vision 2040, following stability in the Gulf.
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