Oman’s GDP rises to $27.15 billion in Q1 2024, driven by non-oil factors

Oman’s gross domestic product (GDP) grew by 0.8 percent year-on-year in the first quarter of 2024, reaching OMR10.45 billion ($27.15 billion), according to preliminary data from the National Center for Statistics and Information. The increase was driven by a sharp increase in non-oil activities, which recorded a value of OMR7.18 billion, an increase of 3.9 percent compared to the same period in 2023.

Favorable economic prospects

This is in line with Oman’s favourable economic outlook, where real growth is forecast to reach 1.5 per cent in 2024. This growth is expected to be driven by increased gas production and ongoing government diversification efforts.

Challenges in the Oil and Gas Sectors

The data also revealed some challenges as oil-related activities fell 4.4 percent year-on-year to OMR 2.99 billion. Similarly, natural gas-related activities fell 0.1 percent to OMR 424.4 million in the first three months of 2024. However, total industrial activities saw growth, rising from OMR 1.91 billion in Q1 2023 to OMR 2.18 billion in Q1 2024.

Supporting governance and efficiency reforms

The positive performance of Oman’s non-oil sectors supports the government’s efforts to promote governance and efficiency reforms, including the launch of the Future Fund Oman by the Oman Investment Authority (OIA). The aim of this fund is to attract foreign investment and drive investment in local small and medium-sized enterprises, further driving economic diversification.

Read more: Oman to move up five places in Industrial Competitiveness Performance Index in 2024

Steady growth in sovereign wealth fund assets

In June 2023, the OIA report indicated that the country’s national wealth fund’s total assets grew by an estimated 7.4 percent year-on-year, reaching OMR 19.24 billion in 2023. The fund also recorded a 9.95 percent return on investment for the year, underlining its strategic approach to investment and effective management of its diversified portfolio. These results reflect OIA’s role in driving economic growth and stability in Oman.

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