Almost 50 years after it began shipping oil out of the port at Mina Al Fahal, the sultanate’s economy remains closely tied to the fortunes of hydrocarbons, which in 2015 accounted for 33.9% of GDP, 78.7% of state revenues and 59.4% of goods exports. Although 2015 was challenging for the nation’s oil and gas sector, the government is expected to keep crude production near its current level of...
The insurance industry in Oman has grown strongly in recent years and now plays an important role in the domestic economy, rising from 0.9% of GDP in 2008 to 1.6% in 2015. Important regulatory changes made in 2015 and 2016, aimed at strengthening the industry’s capital base, promise to usher in a new era of expansion and to boost the amount of premiums retained within the local market. To grow...
The securities exchange in Muscat is a vital component of the Omani economy. The bourse serves as a showcase for the sultanate’s large enterprises, but its primary function is to act as an arena in which pooled capital can be distributed to investment sectors. In 2015, for example, the exchange had the capacity to provide OR2.56bn ($6.6bn) in funding. Throughout 2016, however, subdued oil...
A number of challenges have confronted Oman’s banking sector in recent years: a structural shake-up in the form of a new Islamic segment has increased competition levels; declining oil prices, which have constricted lending opportunities in some segments and compelled the regulator to encourage greater credit extension to others; and uncertainty surrounding the growth of regional economies,...
Having endured low oil prices for the entire year, countries across the resource-rich GCC saw their balance sheets constrained in 2015, and in Oman’s case lower oil revenues led to a nominal GDP contraction of 13.8% and the largest deficit in more than a decade. Closing the fiscal gap is a government priority, with spending cuts, tax reform and increased private sector activity all expected to...
Located in the south-eastern quarter of the Arabian Peninsula, Oman is the only member of the GCC situated outside of the Gulf itself. Leveraging its strategic location, it has invested in infrastructure with the goal of becoming a global logistics centre. While less hydrocarbons-rich than its GCC neighbours, the sultanate’s diversification efforts are a driving force behind its economic...
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