Oman's GDP Growth Driven by Expanding Non-Oil Sectors
Agriculture and Fisheries Show Strongest Growth Rates as Sultanate Pursues Economic Diversification
In the first quarter of 2025, Oman's gross domestic product (GDP) at current prices rose by 4.7 percent year-on-year to reach 10.53 billion Omani rials ($27.3 billion), up from 10.06 billion rials in the same period of 2024.
The growth was primarily attributed to stronger performance in non-oil activities, which increased 4.1 percent to 7.13 billion rials compared to 6.85 billion rials a year earlier.
Across various economic sectors, agriculture and fisheries posted the highest growth rate with an expansion of 11.1 percent to 326.6 million rials.
Industrial activities rose by 2.8 percent to 1.97 billion rials while services grew by 4.2 percent contributing 4.84 billion rials to GDP. Oil activities also contributed positively, recording a 6.8 percent increase in value-added and reaching 3.71 billion rials.
Although crude oil activities decreased by 7.5 percent to 2.74 billion rials, natural gas activities saw an increase of 89 percent with value-added rising to 970.8 million rials.
Oman's focus on strengthening non-oil sectors and diversifying its economy is reflected in the figures.
In June, Credit Oman reported that insured non-oil exports reached 61.2 million rials in the first quarter, up by 6 percent compared to the same period in the previous year, driven by higher shipments of construction materials, petrochemicals, mining products, and agricultural goods.
The broader non-oil exports rose 8.6 percent to 1.61 billion rials, accounting for 28.6 percent of total exports.
To support long-term growth, the government is pursuing fiscal reforms including a royal decree to introduce personal income tax starting in 2028.
Additionally, Oman's residential property market showed renewed strength in early 2025 with residential property prices increasing by 7.3 percent year-over-year in the first quarter.
The gains reflect a regional upswing in property activity during this period.
The growth was primarily attributed to stronger performance in non-oil activities, which increased 4.1 percent to 7.13 billion rials compared to 6.85 billion rials a year earlier.
Across various economic sectors, agriculture and fisheries posted the highest growth rate with an expansion of 11.1 percent to 326.6 million rials.
Industrial activities rose by 2.8 percent to 1.97 billion rials while services grew by 4.2 percent contributing 4.84 billion rials to GDP. Oil activities also contributed positively, recording a 6.8 percent increase in value-added and reaching 3.71 billion rials.
Although crude oil activities decreased by 7.5 percent to 2.74 billion rials, natural gas activities saw an increase of 89 percent with value-added rising to 970.8 million rials.
Oman's focus on strengthening non-oil sectors and diversifying its economy is reflected in the figures.
In June, Credit Oman reported that insured non-oil exports reached 61.2 million rials in the first quarter, up by 6 percent compared to the same period in the previous year, driven by higher shipments of construction materials, petrochemicals, mining products, and agricultural goods.
The broader non-oil exports rose 8.6 percent to 1.61 billion rials, accounting for 28.6 percent of total exports.
To support long-term growth, the government is pursuing fiscal reforms including a royal decree to introduce personal income tax starting in 2028.
Additionally, Oman's residential property market showed renewed strength in early 2025 with residential property prices increasing by 7.3 percent year-over-year in the first quarter.
The gains reflect a regional upswing in property activity during this period.
