RIYADH: Oman’s economy expanded by 2.6 percent year on year in the first quarter of 2026, driven by stronger oil and gas activity and continued growth in the services sector, official data showed.
Gross domestic product at constant prices reached 9.69 billion Omani rials ($25.2 billion) in the first three months of the year, compared with 9.44 billion rials in the corresponding period of 2025, the Oman News Agency reported, citing preliminary data from the National Center for Statistics and Information.
Oil-related activities grew 4.6 percent year on year during the first quarter to 3.04 billion rials, up from 2.9 billion rials in the same period of 2025.
The latest figures come weeks after the International Monetary Fund upgraded its 2026 growth forecast for Oman to 3.7 percent from the 3.5 percent projected in April, citing the country’s economic resilience following a staff visit to Muscat in June.
The increase reflected stronger performance across both crude oil and natural gas production. Value added from crude oil activity rose 4.3 percent to 2.55 billion rials from 2.45 billion rials a year earlier, while natural gas activity recorded 6 percent growth, with value added climbing to 481.2 million rials from 453.9 million rials.
“As for non-oil activities, it rose during the first quarter of 2026 by 2.4 percent to record 7.04 billion rials, compared to 6.88 billion rials in the same period of 2025,” the ONA report stated.
The services sector remained the largest contributor to the non-oil economy, growing 3.7 percent year on year to 4.72 billion rials from 4.55 billion rials in the corresponding period of 2025.
Agriculture and fisheries posted one of the strongest performances among non-oil industries, expanding 6.1 percent to 337.8 million rials, reflecting continued growth in sectors targeted under the sultanate’s diversification agenda.
Industrial activities, however, declined by 1.2 percent to 1.98 billion rials from just over 2 billion rials a year earlier, partially offsetting gains recorded elsewhere in the economy.
Despite the decline in industrial output, the overall expansion across both hydrocarbon and non-hydrocarbon sectors underscores the resilience of Oman’s economy as it continues to broaden its sources of growth while maintaining fiscal discipline.
In recent years, Oman has accelerated efforts to reduce its dependence on hydrocarbons by expanding sectors such as tourism, logistics, manufacturing, mining, fisheries and clean energy, while pursuing fiscal reforms that have strengthened public finances.
While oil and gas activity provided a significant boost to growth, non-oil sectors accounted for more than two-thirds of total economic output during the quarter, highlighting the increasing role of diversified industries in supporting the sultanate’s economy.
