Oman has been classified as “largely compliant” with international standards regarding transparency and the exchange of tax information. This favorable evaluation underscores the significant advancements Oman has achieved in improving the transparency of its tax system.
The assessment conducted by the jurisdictional body was grounded in a thorough examination of the Sultanate of Oman’s adherence to transparency mandates and the exchange of tax information upon request, in line with the criteria established by the global forum of the Organization for Economic Co-operation and Development (OECD) concerning transparency and information exchange, as reported by Oman News Agency (ONA).
Read more: Oman’s real GDP expands 2.5 percent to $24.52 billion in Q1 2025
Commitment to transparency and governance
As part of the assessment process, a team of international evaluators visited the Sultanate of Oman in September 2024. During this visit, they engaged in discussions with experts from the Tax Authority and relevant government departments to evaluate Oman’s transparency and compile a report on its status.
This high ranking signifies Oman’s steadfast commitment to upholding the principles of transparency and governance while bolstering international trust in the country’s tax system. Oman’s dedication to adhering to global standards also plays a crucial role in fighting tax evasion and supporting collaborative international efforts in financial and tax matters.
To further enhance transparency and investment competitiveness, the Tax Authority is persistently implementing the best international practices and adhering to globally accepted standards, recognizing that harmonizing international tax practices reduces tax compliance costs for investors.
Moody’s rating upgrade
Last week, Moody’s Ratings upgraded Oman’s long-term issuer and senior unsecured ratings from Ba1 to Baa3, while also changing the outlook from positive to stable. This upgrade reflects expectations that Oman’s government debt metrics will remain strong, even if oil prices fall below Moody’s medium-term assumption of $65 per barrel. The rating agency emphasized the significant reduction in the debt burden over recent years, along with the cumulative effects of spending restraint, as crucial factors bolstering Oman’s resilience to potential future declines in oil demand and prices.
By the end of 2024, Oman’s government debt burden decreased to 35.5 percent of GDP, down from 37.5 percent at the close of 2023, continuing the positive trend observed since 2020. Moody’s forecasts that most of Oman’s debt ratios will continue to improve in the coming years, though at a more moderate pace than that seen over the past four years. A stronger debt position provides the government with greater fiscal flexibility and time to implement structural reforms aimed at reducing the country’s heavy economic and fiscal dependence on the hydrocarbon sector.
Steady economic growth
Oman’s economy demonstrated a steady growth rate of 2.5 percent in real GDP by the end of Q1 2025, reaching OMR9.43 billion ($24.52 billion) at market prices—an increase from OMR9.2 billion during the same period in 2024, according to Oman’s National Centre for Statistics and Information. This rise in GDP was largely driven by strong performance in non-oil sectors, which saw a 4.4 percent increase in added value, climbing to OMR6.92 billion compared to OMR6.63 billion in Q1 2024.
In contrast, oil activities experienced a slight decline of 0.4 percent, contributing OMR2.92 billion in Q1 2025, down from OMR2.94 billion the previous year. Crude oil production fell by 2.2 percent to OMR2.45 billion, while natural gas production emerged as a bright spot, increasing by 9.5 percent to OMR475.3 million.
Oman reported a budget surplus of 6.2 percent and a current account gain of 2.4 percent in 2024, attributed to prudent fiscal policies, high oil prices, and growth in nonhydrocarbon exports. In its 2024 Article IV consultation, the International Monetary Fund praised these results as a testament to effective economic management. Despite increased social spending under a new protection law, the nonhydrocarbon primary deficit as a share of nonhydrocarbon gross domestic product remained stable, underscoring the government’s commitment to financial discipline.
