Diversification: Oman’s non-oil sector fuels country’s growth to $27 billion

Dubai: Oman’s gross domestic product (GDP) rose 0.8 per cent year-on-year to $27.15 billion (AED 99 billion) in the first quarter of this year, boosted by growth in non-oil activities.

Non-oil activity reached $18.6 billion (Dh68.3 billion) by the end of the quarter, up 3.9% compared with the same period in 2023, according to preliminary data from the National Centre for Statistics and Information.

This growth is consistent with Oman’s positive economic outlook, which is targeting a real growth rate of 1.5 per cent in 2024, supported by increased gas production and ongoing diversification initiatives.

The government’s commitment to governance and efficiency reforms, exemplified by the launch of the Future Fund Oman by the Oman Investment Authority in January, aims to attract foreign investment and increase support for local small and medium-sized enterprises.

Future Fund Oman comprises a capital of $5 billion (18 billion dirhams). The fund offers a range of financing opportunities to selected investors and partners who want to play a role in improving and stimulating the country’s economic landscape.

The data also showed a decline in oil-related activities, which came in at $7.7 billion (Dh28 billion), down 4.4 per cent year-on-year. Similarly, natural gas activities saw a small decline of 0.1 per cent, reaching a total of $1.3 billion (Dh4.7 billion) in the first quarter of 2024. Total industrial activities rose to $5.6 billion (Dh20.5 billion) from $5 billion (Dh18.3 billion) in the same quarter the previous year.

These results underscore the Oman Investment Authority’s key role in promoting economic growth and stability in the region, driven by strategic investments and effective portfolio management. The Authority continues to uphold its mandate to supervise and develop domestic funds and assets, strengthen financial reserves and implement key government policies aimed at developing key economic sectors.