Muscat: In a comprehensive statement, the government reaffirmed its commitment to maintaining financial sustainability, ensuring the stability of social services, and curbing inflation. The minister announced several key initiatives aimed at keeping inflation at 0.6% by the end of 2024. Alongside this, Oman is expecting foreign investments to reach RO 26.677 billion by year’s end. These measures, which form part of the government’s broader economic strategy, reflect a strategic focus on keeping inflation under control while fostering an environment conducive to long-term economic growth.
Al Habsi outlined Oman’s projected public revenues for 2025, estimating them at RO 11.180 billion, which has been calculated based on an average oil price of USD 60 per barrel and a daily production rate of about one million barrels. He explained that this conservative oil price assumption ensures the country’s financial stability despite fluctuating market conditions. The minister highlighted the importance of this approach in light of potential global economic disruptions, particularly those arising from shifting customs duties, which could impact oil prices and broader global economic growth. By adopting a cautious stance on oil prices, Oman aims to protect its budget from market volatility while ensuring sufficient funds to support the country’s development plans.
On the expenditure side, the government has allocated a total of RO 11.80 billion for public spending in 2025. This budget continues to prioritize public investment in critical sectors while ensuring that social services remain a core focus of national policy. Approximately RO 5 billion is dedicated to social services, which represents a 4% increase from the previous year. The budget is designed to address the growing needs of the population, with a particular emphasis on supporting vulnerable communities and ensuring access to essential services. The government is also committed to fostering regional development, as evidenced by the RO 147 million earmarked for developmental projects across Oman’s governorates, helping to bring growth to all corners of the country.
Furthermore, Al Habsi highlighted the expansion of the Housing Bank’s loan portfolio, which has grown to over RO 855 million. This increase in available loans supports the government’s ongoing efforts to provide affordable housing for the population, especially for low- and middle-income families. By facilitating access to home financing, the government aims to improve the living conditions of its citizens, contributing to a higher quality of life and greater economic stability. The continued growth of the Housing Bank’s portfolio underscores the government’s commitment to addressing the housing needs of the Omani population and promoting socio-economic development across the country.
