World Bank Expects Oman Economy to Grow 2.4% in 2026

Ministry of Finance Reviews GCC Economic Outlook with World Bank

Muscat: The Ministry of Finance today hosted a meeting with the World Bank Group to review the findings and outlook of the Economic Report for the GCC states. The session discussed the Group’s forecasts and recommendations across its various reports, while also monitoring regional and global economic developments.

The meeting highlighted key performance indicators of GCC economies. The report confirmed that, despite regional and global challenges, Gulf economies have demonstrated relative resilience, supported by growth in non-oil sectors, accelerated economic diversification, an expanded base for government revenues and trade exports, along with rising investments in infrastructure projects.

The report noted an improvement in Gulf economic growth, which reached approximately 3.2 percent in 2025, with expectations of around 4.5 percent in 2026. The average inflation rate stood at 2.2 percent in 2025, and inflation is expected to remain low and stable at 2.1 percent in 2026.

Report data further indicate a continued positive performance across GCC economies over the medium term, underpinned by relatively robust economic growth and varying surpluses in external balances, despite persistent risks linked to oil price volatility, global uncertainty, and geopolitical tensions.

Regarding the Sultanate of Oman, the report highlighted tangible positive financial and economic outcomes during 2025. The national economy recorded a growth rate of 3.1 percent, attributed to government measures aimed at improving fiscal performance and enhancing spending efficiency.

Meanwhile, the state’s general budget registered a limited deficit equivalent to 1.2 percent of GDP. Oman also achieved a current surplus account, supported by growth in non-oil exports and service exports, while the inflation rate stood at 0.8 percent as of the end of the first half of 2025.

The report expects this positive performance of the national economy to continue through 2026, with projected economic growth of approximately 2.4 percent, a stable deficit at manageable levels, and a current surplus account driven by higher oil prices and non-oil export growth. Public debt is projected to remain stable at 35 percent of GDP, reflecting the effectiveness of the government’s adopted fiscal policies.

In his address, Abdullah Salim Al Harthy, Undersecretary of the Ministry of Finance, noted that this meeting is part of the Ministry’s commitment to strengthening cooperation channels and exchanging expertise with international financial institutions. This, he said, supports national efforts, aligns with global economic trends, and enhances the ability to benefit from best international practices and experiences across various economic and financial fields.

He further explained that the meeting sheds light on Oman’s ongoing efforts to enhance fiscal sustainability, the progress achieved on fiscal consolidation, the development of fiscal policies, and improved resource management efficiency — all of which support financial stability and strengthen the national economy.

Meanwhile, Mahmoud Abdullah Al Aweini, Secretary General of the Ministry of Finance, affirmed that the report’s findings reflect the robustness of Gulf economies and their capacity to adapt to regional and global economic shifts. They also validated the soundness of the fiscal policy pursued by the Sultanate of Oman in recent years, which has contributed to strengthening fiscal sustainability and achieving economic growth.

He also emphasized the Ministry of Finance’s commitment to continuously developing fiscal policies that support economic diversification, improve spending efficiency, and enhance the competitiveness of the national economy.

Wendy Werner, Country Manager of the World Bank Group’s office in the Sultanate of Oman, stated that her team aims to support the implementation and study of Oman Vision 2040, and to contribute to the Sultanate of Oman’s economic growth, particularly in sustainable diversification and growth patterns.

She added that the World Bank Group’s outlook for the Omani economy is highly positive, with expected growth over the coming years relying on reducing public debt alongside a focus on improving growth and diversification in non-oil sectors.

It is worth noting that this report serves as a reference to support decision-makers in shaping future fiscal and economic policies, enhancing the ability of GCC states to face economic challenges, transparency raising levels, and reinforcing economic integration among member states.