MUSCAT: Oman recorded notable fiscal surpluses and demonstrated significant economic resilience throughout 2024, as highlighted by the World Bank’s latest assessment. These positive outcomes are largely attributed to the Sultanate’s ongoing efforts to diversify its economy beyond oil dependency, implementing comprehensive fiscal reforms, and enhancing revenue streams from non-oil sectors. The government’s strategic initiatives have contributed to strengthening financial stability and improving macroeconomic indicators despite global economic uncertainties.
The World Bank report emphasizes the success of Oman’s diversification strategy, including investments in sectors such as tourism, manufacturing, logistics, and renewable energy. These sectors have progressively increased their contributions to GDP, mitigating the effects of oil price fluctuations. Fiscal reforms have also played a pivotal role, focusing on efficient public spending, tax policy adjustments, and enhanced fiscal governance. Such reforms have improved the budgetary balance and allowed for prudent debt management.
Economic resilience was further reinforced by improved export performance and stable inflation rates, which supported domestic consumption and investor confidence. The government’s commitment to infrastructure development and regulatory improvements has attracted both foreign and domestic investments, fostering a conducive environment for sustainable growth. Oman’s Vision 2040 framework continues to guide these efforts by promoting innovation, human capital development, and private sector participation.
Looking ahead, the World Bank report recommends continued vigilance in fiscal management and sustained implementation of structural reforms to maintain momentum. It highlights the importance of diversifying sources of revenue further and enhancing economic competitiveness to ensure long-term sustainability. Oman’s progress in 2024 is viewed as a positive signal for the region, showcasing the benefits of strategic planning and resilience-building measures in a rapidly changing global economic landscape.
