Oman’s economy showed a modest improvement in the first quarter of 2025, with a 2.5% increase in real GDP, reaching OMR 9.43 billion.
This growth, up from OMR9.2 billion in the same period last year, is mainly due to the contribution of non-oil sectors. These sectors have gained traction, registering a 4.4% increase in value added, going from OMR6.63 billion to OMR6.92 billion.
Interestingly, the development in non-oil industries overshadowed a slight dip in the oil sector, which saw a 0.4% decrease, bringing in OMR 2.92 billion compared to last year’s 2.94 billion. The downturn in oil activities came as crude oil production fell by 2.2%. In contrast, natural gas production went against the trend, rising significantly by 9.5%, contributing OMR475.3 million to the economy.
The diversification away from oil-based revenue streams is a strategic move for Oman, attempting to lessen its reliance on fluctuating oil prices. As the country navigates this shift, the performance of non-oil sectors will be crucial in shaping its economic landscape in the coming years. In this context, sectors like manufacturing, logistics, and tourism have become critical for economic expansion.
