Oman has approved a $29.77 billion general state budget for 2026, projecting public expenditure of about $31.15 billion and setting a target of around 4 percent economic growth, as the sultanate continues to diversify from its reliance on oil. The budget also launches the next phase of its economic programme that aims for 4 percent growth through 2030. Revenues are based on an average oil price of $60 per barrel and are forecast to rise by 2.4 percent from the previous year, while spending is set to increase by 1.5 percent. The budget projects a deficit of about $1.38 billion, equal to 1.3 percent of gross domestic product.
Foreign direct investment reached about $78.8 billion by the third quarter of 2025. The Oman Investment Authority holds assets of roughly $54.6 billion and has contributed more than $11.4 billion to the budget in recent years. Government investment continues in education, healthcare and infrastructure, including new schools, hospitals and more than 2,500 kilometres of roads, as authorities seek to sustain growth and social development.
Oman, a member of OPEC+, is one of the smaller oil producers in the Gulf that, much like its neighbours, continues to diversify its economy away from crude dependence. The oil industry plays a key role in Oman’s modern and expansive infrastructure, including electric utilities, roads, public education and medical services, according to the US International Trade Administration. Last year, Oman said it will be introducing personal income tax from 2028, which is a significant milestone in the sultanate’s push to achieve its economic diversification goals.
