Oman’s economy is expected to gain momentum, but the sultanate faces potential risks from regional geopolitical tensions, a sudden global economic downturn, and sustained high global interest rates, the International Monetary Fund has said.
Surge in oil prices, driven by supply and demand imbalances, and accelerated reforms under Oman Vision 2040, are expected to boost the economy, the Washington-based fund said on Monday, at the end of an official staff mission to the country.
The Gulf nation’s real gross domestic product, which grew 1.3 per cent last year, is expected to moderate at 0.9 per cent this year, on the back of extended oil production cuts to the first half of this year, before accelerating to 4.1 per cent in 2025, said Cesar Serra, who led the IMF staff visit to Oman.
“The near- to medium-term outlook is favourable and risks to the outlook are broadly balanced.”
The IMF team visited Muscat from April 30 to May 8 to discuss economic and financial developments, the outlook, and the country’s policy priorities.
Oman’s non-hydrocarbon growth is projected to increase to 2.6 per cent in 2024 and 3.2 per cent in 2025, from 2.1 per cent last year, on continued reforms and investment projects.
Production cuts by Opec and its allies are also supporting oil prices.
In March, Several members of the Opec+ group, including Saudi Arabia, the UAE and Kuwait, announced extensions to oil production cuts as part of efforts to support market balance and stability.
In total, Opec+ members are extending additional voluntary cuts of 2.2 million barrels a day to the end of the second quarter, the Opec secretariat said.
The move is in addition to the cuts announced in April last year, which have been extended until the end of December.
“Central government debt as a share of GDP was reduced further to 36.5 per cent in 2023 from 40.9 per cent in 2022, as the government continued to use part of the fiscal surplus to prepay its debt [a net debt reduction of $6.1 billion],” Mr Serra said.
State-owned enterprises' (SOEs) debt stabilised at around 31 per cent of GDP and the SOEs reform agenda by the Oman Investment Authority proceeded as planned, completing nine divestments in 2023 with proceeds amounting to about $3 billion.
In January, Oman Investment Authority also launched a 2 billion Omani rial ($5.2 billion) fund to encourage investments in the private sector and in small and medium-size enterprises.
The largest non-Opec producer in the Middle East, Oman’s average headline inflation dropped from 0.9 per cent in 2023 to zero during January-March period this year, reflecting “continued easing of core, food, and transport inflation”, Mr Serra said.
Country’s banking sector also remained resilient, IMF said.
The banking sector's capital and liquidity ratios and profitability continue at “comfortable levels amid strong asset quality”.
“Banks’ net foreign asset position turned positive last December for the first time since 2014 due to rising investments in foreign securities, while credit to the private sector continued to expand,” Mr Serra said.
IMF noted that Oman is making progress in implementing structural reform agenda under Oman Vision 2040, which aims to accelerate diversification towards a greener, more inclusive, and knowledge-based economy.
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Trump v Khan
2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US
2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks
2019: Trump calls Khan a “stone cold loser” before first state visit
2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”
2022: Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency
July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”
Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.
Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Scoreline:
Barcelona 2
Suarez 85', Messi 86'
Atletico Madrid 0
Red card: Diego Costa 28' (Atletico)
Racecard
6.30pm: Mazrat Al Ruwayah Group Two (PA) US$55,000 (Dirt) 1,600m
7.05pm: Meydan Trophy (TB) $100,000 (Turf) 1,900m
7.40pm: Handicap (TB) $135,000 (D) 1,200m
8.15pm: Balanchine Group Two (TB) $250,000 (T) 1,800m
8.50pm: Handicap (TB) $135,000 (T) 1,000m
9.25pm: Firebreak Stakes Group Three (TB) $200,000 (D) 1,600m
10pm: Handicap (TB) $175,000 (T) 2,410m
The National selections: 6.30pm: RM Lam Tara, 7.05pm: Al Mukhtar Star, 7.40pm: Bochart, 8.15pm: Magic Lily, 8.50pm: Roulston Scar, 9.25pm: Quip, 10pm: Jalmoud
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
Company%C2%A0profile
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World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
Read more about the coronavirus
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
