IMF Concludes Oman Consultations, Acknowledges Progress in Economic Diversification

An International Monetary Fund (IMF) expert mission concluded its 2025 Article IV consultations in Muscat on November 26, 2025, reporting a notable improvement in Oman's economic growth during 2024 and the first half of 2025. This growth was supported by expansion in manufacturing, wholesale and retail trade, logistics, construction, agriculture and fisheries, while hydrocarbon GDP declined due to reduced production under the OPEC Plus agreement.

Inflation in Oman fell to 0.6% in 2024 and remained contained at 0.9% this year. The fiscal balance recorded a surplus of 3.3% of GDP in 2024, and government debt declined to 36.1% of GDP by the end of September 2025. The IMF expects Oman's economic growth to rise in 2025–2026 as oil production cuts ease and hydrocarbon activity expands, with inflation projected to remain low, close to 2% over the medium term.

Ongoing efforts to modernize tax administration, implement an electronic VAT invoicing system, and introduce personal income tax in 2028 will strengthen fiscal sustainability. The Eleventh Five-Year Development Plan is highlighted as an important opportunity to accelerate economic diversification, strengthen productivity, and create more private-sector jobs through priorities including labour-market reforms, business environment improvement, enhanced market competition, SME support, and renewable-energy initiatives.