Oman’s gross domestic product (GDP) rose in the first quarter of 2024 by 0.8 percent year-on-year to reach OMR10.45 billion ($27.15 billion), according to preliminary data from the National Centre for Statistics and Information. This growth was driven by a surge in non-oil activities, which recorded a value of OMR7.18 billion, reflecting a 3.9 percent increase compared to the same period in 2023.
Favorable economic outlook
This aligns with Oman’s favorable economic outlook, with real growth expected to reach 1.5 percent in 2024. The growth is anticipated to be driven by increased gas production and the government’s ongoing diversification efforts.
Challenges in oil and gas sectors
The data also revealed some challenges, as crude oil activities declined by 4.4 percent year-on-year, amounting to OMR2.99 billion. Similarly, natural gas activities dropped 0.1 percent to OMR424.4 million in the first three months of 2024. However, total industrial activities recorded an increase, growing from OMR1.91 billion in Q1 2023 to OMR2.18 billion in Q1 2024.
Advancing governance and efficiency reforms
The positive performance of Oman’s non-oil sectors supports the government’s efforts to advance governance and efficiency reforms, including the launch of the Future Fund Oman by the Oman Investment Authority (OIA). This fund aims to attract foreign investment and drive investments in local small and medium-sized enterprises, further driving economic diversification.
Read more: Oman climbs five spots in 2024 Competitive Industrial Performance Index
Steady growth in sovereign wealth fund assets
In June 2023, a report from the OIA indicated that the country’s sovereign wealth fund saw its total assets grow by an estimated 7.4 percent year-on-year, reaching OMR19.24 billion in 2023. The fund also reported a 9.95 percent return on investment for the year, highlighting its strategic investment approach and effective management of its diverse portfolio. These results reflect the OIA’s role in driving economic growth and stability within Oman.
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