MUSCAT: Oman’s state budget for 2025 has been designed to ensure both economic growth and stability, with a particular emphasis on enhancing social services while reducing public debt costs. Economic analysts and experts have noted that the 2025 budget is balanced, highlighting key positive elements such as the continued support for essential sectors like petroleum, electricity, water, sewage, and waste. Additionally, there is a strong focus on maintaining the social protection system to ensure the well-being of Omani citizens. Dr. Dhafir bin Awad Al Shanfari, Chairman of the Economic and Financial Committee in the State Council, emphasized the importance of these social supports and the positive steps taken to reduce public debt, with specific measures to restructure lower-cost loans, which will help in alleviating the burden of debt payments for the government.
In addition to the social aspects, the 2025 budget also takes significant strides in promoting economic diversification. Investment spending is expected to increase, especially if a financial surplus is realized, providing a chance to boost industries that can contribute to Oman’s GDP. Key sectors targeted for investment include industry, tourism, fisheries, and logistics. There is a strong push for private sector job creation and the employment of Omanis, with funds allocated for training programs aimed at enhancing the skills of the local workforce. This proactive approach is intended to stimulate Oman’s non-oil economy and address the challenges faced by job seekers, further supported by the assumption of stable oil prices above $70 per barrel, helping to ensure the budget remains balanced and reduces the reliance on oil revenues.
Dr. Mohammed bin Hamid Al Wardi, a member of the State Council, pointed out that the 2025 budget is the final one in the Tenth Five-Year Plan, with significant emphasis placed on maintaining financial sustainability. With expenditure reaching OMR11.8 billion, a 1.3% increase from the previous year, the budget aims to maintain a 2.7% growth rate. This fiscal plan also incorporates measures for reducing public debt, with a focus on enhancing social services through the social protection system, while also providing support for the key sectors of electricity, water, and petroleum products. The strategic goal is to create a balanced fiscal and economic environment that prioritizes long-term stability and sustainable development.
The budget also includes provisions for social spending, with OMR5 billion allocated for sectors such as education and healthcare, representing approximately 42% of the total expenditure. The investment in these sectors aims to improve the overall quality of life for Omanis, with plans to build new government schools and launch healthcare projects. Despite the increased focus on social services, the oil and gas sector continues to play a major role in funding the budget, accounting for more than 70% of total revenues. The government has also placed a significant emphasis on reducing public debt service costs, which have decreased from previous years to OMR915 million. As part of its efforts to diversify the economy, the government is also focusing on attracting investments in other sectors to ensure long-term economic sustainability beyond oil and gas.
