IMF experts conclude Oman meetings

The meetings held in Muscat by the International Monetary Fund expert mission as part of the 2025 Article IV consultations have concluded.

The discussions covered the latest macroeconomic developments, expected future trends, fiscal and monetary policies, the development of the financial sector and structural reforms with senior officials from government bodies and representatives from the private and banking sectors.

In its concluding statement, the IMF expert mission said Oman recorded a notable improvement in economic growth during 2024 and the first half of this year. Growth was supported by expansion in manufacturing, wholesale and retail trade, logistics, construction, agriculture and fisheries. Hydrocarbon GDP declined due to reduced production under the OPEC Plus agreement.

The statement says inflation in Oman fell to 0.6% in 2024 and remained contained this year at 0.9%. The fiscal balance recorded a surplus of 3.3% of GDP in 2024, while the current account registered a surplus of 3.2% of GDP. Government debt declined to 36.1% of GDP by the end of September 2025.

The statement notes that Oman’s economic growth is expected to rise in 2025–2026 as oil production cuts ease and hydrocarbon activity continues to expand. Inflation is expected to remain low, close to 2% over the medium term.

The Mission expects fiscal surpluses to continue, while the current account is projected to record a temporary deficit in 2025–2027 due to lower oil prices before gradually returning to surplus as oil production recovers towards potential and non-hydrocarbon exports increase.

The statement says that ongoing efforts to modernise tax administration, to implement an electronic VAT invoicing system and to introduce personal income tax in 2028 will strengthen fiscal sustainability. It underlines the need to continue public finance reforms, including rationalising non-essential current spending, strengthening the medium-term fiscal framework and establishing a framework for sovereign asset and liability management.

The statement highlights the importance of continued efforts in the Omani banking sector to reinforce the macro-prudential framework, to improve the accuracy of data submitted to regulators, to support supervisory capacities, to enhance the financial safety net and crisis-management tools and to deepen the capital market to diversify private-sector financing sources.

The statement adds that the Eleventh Five-Year Development Plan is an important opportunity to accelerate economic diversification, strengthen productivity and create more private-sector jobs. Its priorities include progressing labour-market reforms, improving the business environment, enhancing market competition to increase private-sector participation, supporting small and medium enterprises and advancing renewable-energy initiatives while expanding digital-transformation programmes including preparedness for artificial intelligence.