Oman is anticipating a budget deficit of OMR640 million ($1.66 billion) in 2024, marking a shift from the surplus recorded in 2023. This deficit, equivalent to approximately 1.5 percent of the country’s gross domestic product (GDP), is attributed to lower oil production and prices.
Moreover, Oman’s 2024 budget is structured around an average oil price of $60 per barrel. That is a conservative estimate compared to prevailing market expectations.
Diversification efforts
Oman’s Minister of Finance, Sultan Salim Al-Habsi, said that the budget estimates ensure that financing needs are met in the event of a decline in oil prices. Oman expects that oil revenues will reach OMR5.9 billion in 2024. That is a decrease from the estimated OMR6.9 billion in 2023. Therefore, the nation is compelled to explore avenues beyond hydrocarbons. Despite efforts to diversify income sources and economic sectors, Oman remains heavily reliant on oil revenue.
Oman’s 2024 budget outlines total revenues of around OMR11.01 billion, a 9.5 percent increase from 2023 estimates. Moreover, Oman expects non-oil revenues to reach OMR520 million. Simultaneously, it expects expenditures to rise by 2.6 percent to approximately OMR11.65 billion.
Read: Central Bank of Oman raises OMR29.45 mn through T-bills allotment
