Federation of Euro-Asian Stock Exchanges
Sultanate of Oman
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Capital Market Information
Country Facts
Key Highlights of the year 2016 2017
Economic Development and Outlook
The economy likely expanded at a tepid pace last year, with growth in the non-oil sector offset by OPEC oil production cuts. The hairy fiscal situation remains a key concern: In January–November the deficit remained elevated amid higher expenditures, and the 2018 budget points to a more expansionary fiscal stance. To boost revenues, in February the government announced new excise taxes from June, following similar moves by other GCC countries. The fiscal shortfall is currently being financed largely by debt, and in January Oman completed a USD 6.5 billion bond sale to cover most borrowing needs for the year. Saudi Arabia is also lending support, and recently offered USD 200 million to finance a major industrial project.
Key Highlights
• 70 percent of government revenues come from oil and gas.
• Expenditure is budgeted to be reduced by eight percent without curtailing development expenditure.
• Allocations to education, health and social welfare remain unchanged at 23 percent.
• The deficit is predominantly financed out of borrowings. Public debt has already doubled to RO7.4b or 29 percent of GDP, at the end of 2016 compared to 2015.
• The government is focused on ensuring that its Tanfeedh and privatization programs succeed.