Oman

With earnings from oil accounting for more than 80% of government income, the halving of prices since June has eroded state revenue and could impact the extensive capital works programme in 2015, despite a government pledge to hike this year’s spending by 4.5% from its earlier plans. 

Islamic banking in Oman is expected to grow at double-digit rates as sharia-compliant banking products increasingly gain acceptance and the government’s plans to ease restrictions come to fruition.

A multibillion-dollar cash injection from the state is supporting new growth across Oman’s construction sector, amid efforts to encourage the industry to source labour, services and supplies locally to broaden the contribution to its economy.

Recently released figures indicate that Oman’s diversification strategy is beginning to bear fruit. But, despite the Sultanate’s finances looking healthier, the country still remains vulnerable to price shocks in the energy sector.

Sustained growth in Oman’s tourism industry is expected on the back of rising interest in the destination together with favourable economic conditions driving up disposable income and improved connectivity.

The retail sector in Oman is set to enjoy solid growth in 2014, with disposable incomes on the rise and economic expansion being fed by higher levels of state investment, though a rapid expansion of retail space in the capital may soon leave shoppers spoiled for choice, putting pressure on rental charges and returns.