Rise in oil activities drives up Oman’s economy

Oman’s economy grew between April and June this year as disruption to the Strait of Hormuz failed to dampen oil exports from the sultanate.

GDP rose 5.1 percent year on year to OMR9.9 billion ($26 billion) in the quarter ended June 30, the state-run Oman News Agency reported, citing preliminary data from the National Centre for Statistics and Information (NSCI).

The value of non-petroleum activities rose almost 1 percent year on year to OMR7 billion. Petroleum revenue reached OMR3.4 billion, up from OMR3 billion in the same quarter last year.

The US-Israeli war with Iran, which began on February 28, led to a drop in oil production and exports by GCC countries after the closure of the Strait of Hormuz, a strategic waterway that handled one-fifth of global commodity trade before the conflict. Oman, among the six-member bloc, was least affected, because it controls the southern coast of the strait.

According to the NSCI, agriculture and fishing activities – the largest sector in the region – was worth OMR325 million, up from OMR318 million in the second quarter of 2025. However, industrial activities declined nearly 2 percent annually to OMR2 billion.

The sultanate projected a budget deficit of OMR530 million for 2026, down 14 percent from last year. NSCI said average prices of Omani crude rose nearly 10 percent in the first six months of this year to $81 per barrel, up from $74 per barrel a year ago.

Daily crude oil production rose 11 percent year on year through June to about 1.1 million barrels per day, while gas production increased by 7 percent, official data showed.

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