Oman has approved its national budget for 2026 as it continues to diversify the economy from its reliance on oil. Revenue is projected at OMR 11.45 billion (USD 29.8 billion) up 2.4% on 2025 and based on oil prices of USD 60 per barrel. Total public spending is pegged at OMR 12 billion (USD 31.2 billion) which is a 1.5% annual increase. A budget deficit of OMR 530 million (USD 1.4 billion) is expected, which is a 14.5% reduction from last year.
Budget Revealed Alongside Launch Of 11th Five Year Development Plan
The budget was announced alongside the launch of the country’s 11th five-year development plan that will run until 2030. Accordingly, it aims for 4% growth per year and is the next phase of Oman’s Vision 2040 economic strategy. A key aspect linking both is dedicated funding for economic transformation projects, amounting to OMR 400 (USD 1 billion) a year. Notably, the plan commits to fiscal sustainability, maintaining public debt within prudent limits and diversifying non-oil revenue sources. Further aims include advancing social development, creating jobs while fostering a diversified, competitive and sustainable national economy. Inflation would be maintained at 1.4%, while GDP growth is expected to rise 5% according to Oman’s Ministry of Economy. During the previous development plan, Oman’s budget generated an additional OMR 11.29 billion (USD 29.3 billion) from 2021 to 2025. This increase was attributed to higher global oil prices during the period.
However, net oil revenue would still account for half of Oman’s total estimated revenue for 2026. Conversely, non-oil revenue would comprise 33% and net gas revenue 17%. Moreover, the Sultanate has stated it will introduce personal income tax from 2028 to help achieve its economic diversification goals.
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