Oman’s GDP rises in line with surging oil prices

• Omani crude price up 10%
• Non-oil revenues beat hydrocarbons
• War gains may prove temporary

Surging oil prices and higher supply chain trades triggered by the regional war increased Oman’s GDP in June, but analysts say the sultanate must look beyond the short term to strengthen the economy.

The sultanate’s GDP rose nearly 4 percent year on year to OMR19.5 billion ($51 billion) in the first six months of 2026, according to government data.

The value of petroleum activities in the first six months rose 10 percent year on year to OMR6.5 billion, the National Centre for Statistical Information (NSCI) said.

But non-petroleum revenues were more than double the petroleum income, reaching OMR14 billion, up 1 percent year on year to June.

“The war is pushing up the economic numbers but Oman must keep up with the economic gain this year to cut deficits and debts,” Azza Al Habsi, economist at Ominvest, told AGBI.

The average price of Omani crude increased by nearly 10 percent in the first six months of this year to $81 per barrel, up from $74 per barrel in the same period a year earlier.

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Logistics experts said the war has helped Oman increase exports to regional countries as the conflict between Iran and the US has effectively closed the Strait of Hormuz to shipping.

“Non-oil activities this year have been boosted by the war, with Oman increasing its supply chain activities by exporting more to regional countries,” said Essam Al Sheibany, vice president of sustainability at logistics company Asyad Group.

“The gain will probably last as long as the war is raging on but we need to keep up with the momentum beyond this conflict,” Al Sheibany said.