GDP grew 1.3% to Ro38.2bn in 2023

Oman's real Gross Domestic Product (GDP) recorded an annual growth of 1.3%, reaching Ro38.2bn at the end of 2023 from Ro37.7bn recorded in 2022, the Ministry of Economy announced last week.

However, the sultanate's nominal GDP – gross domestic product at current market prices – decreased 2.8% to Ro41.8bn in 2023 compared to the previous year, the ministry added.

The growth in GDP achieved in the last year was mainly supported by a 2.4% growth in the added value of non-oil activities. The non-oil sectors' contribution to the sultanate's overall GDP increased from Ro26.6bn in 2022 to Ro27.3bn at the end of 2023.

Oil sector activities slightly increased - 0.4% - in 2023, bringing its contribution to the overall GDP to Ro12.4bn in 2023 from Ro12.3bn in 2022. The slight growth in oil activities reflects the impact of developments in the global oil market and Oman’s commitment to the OPEC+ agreement to maintain the stability of the oil market.

The Ministry of Economy explained that in 2023, growth rates were good despite global challenges and changes in the oil market that led to a decline in oil production and prices from the high levels witnessed in 2022.

According to the ministry, the Omani economy is expected to

The growth in GDP achieved in the last year was mainly supported by a 2.4% growth in the added value of non-oil activities

continue to grow in the current and next year, with expectations of continued good levels of oil prices, good performance of non-oil activities, and constant development of new initiatives that enhance diversification efforts.

In January, the Ministry of Finance estimated Oman’s economy to achieve growth of at least 3% in 2024, while continuing to maintain annual inflation at moderate levels.

Supporting the growth are strategic investments in industrial cities and free zones, alongside major agreements in green industries and green hydrogen.