Oman's non-oil sector drives economic growth

The Sultanate of Oman’s Gross Domestic Product (GDP) for the first quarter of the current year showed significant growth driven by non-oil activities, which have become a key contributor to the country’s economic expansion.

According to the Ministry of Economy, non-oil activities contributed OMR6.8 billion at constant prices and OMR7.2 billion at current prices to the GDP.

This growth was bolstered by a 6.5 percent increase in agriculture, forestry, and fishing activities, a 5.7 percent rise in industrial activities, and a 3.9 percent growth in service activities compared to the same period in 2023.

The contribution of these sectors to the GDP at constant prices was 2.3 percent for agriculture, forestry, and fishing, 20.8 percent for industrial activities, and 48.2 percent for service activities. At current prices, their contributions were 2.7 percent, 19.3 percent, and 46.9 percent, respectively.

The transportation and storage sector also recorded a robust growth of 7.8 percent, contributing 6.4 percent to the GDP, while mining and quarrying activities grew by 0.9 percent, contributing 0.6 percent to the GDP.

Despite a 12 percent decline in the growth of accommodation and food services, the education sector saw a 3.2 percent increase in growth, contributing 4.5 percent to the GDP.

Other sectors also showed recovery and growth as the construction sector grew by 2.7 percent, contributing 8.3 percent to the GDP, while wholesale and retail trade saw a 5.8 percent growth, contributing 8.1 percent. Financial and insurance activities grew by 5.6 percent, contributing 5.8 percent to the GDP.

However, oil activities experienced a decline of 2.4 percent in the first quarter, largely due to a 3.3 percent reduction in crude oil activity, contrasting with a 5.1 percent growth during the same period last year.

The Ministry of Economy noted that despite the decline in oil activities, the overall economic growth continued at a rate of 1.7 percent, driven by a 4.5 percent growth in non-oil sectors.

The Tenth Five-Year Plan (2021-2025) aims to further increase the contribution of various non-oil sectors to the GDP, with expectations for continued economic growth through 2025, supported by the anticipated recovery of oil activities as the OPEC Plus group plans to gradually increase oil production by the end of 2024.