In the first half of 2024, Oman’s non-oil sector grew 4.2% year-over-year, fuelled by the nation’s strategic emphasis on economic diversification as articulated in its 10th Five-Year Plan (2021-2025).
The Undersecretary of the Ministry of Economy, Nasser Al-Mawali, told the state-run Oman News Agency that this expansion is a major step forward in Oman’s efforts to lessen its reliance on oil income and create a more robust economic foundation, which is in keeping with Oman Vision 2040’s goals.
Contributions from the non-oil sector to the national gross domestic product increased from 13 billion Omani rials (USD 35.1 billion) in 2023 to 13.5 billion rials by mid-2024. At constant prices, this sector currently makes up 72.2% of Oman’s GDP.
Nasser Al-Mawali credited the sustained expansion of non-oil activities to national initiatives meant to boost economic diversification and increase the economy’s potential for production.
Expanding the nation’s economic base, assisting small and medium-sized businesses, and boosting private sector involvement are the top priorities of the 10th Five-Year Plan, which is the first stage of “Oman Vision 2040.”
As of 2024, strategic initiatives under this plan have achieved a 90 per cent implementation rate, with significant achievements in industries like green hydrogen, logistics, pharmaceuticals, and fisheries, according to Nasser Al-Mawali.
The amount of foreign direct investment in Oman increased from roughly 13.8 billion rials at the end of 2021 to about 26 billion rials by the middle of 2024.
In comparison to the same period in 2023, the nation’s total GDP increased by 10.9% in the first half of 2024, from 184.4 billion rials to 187 billion rials, at constant prices. GDP rose to almost 21 billion rials at current prices, up from 20.4 billion rials.
During the same period, Oman’s oil sector saw a 2-5% decline, mostly as a result of a 4% drop in crude oil production, while the non-oil sector saw robust growth. Positively, the energy sector benefited from a 6.6% increase in natural gas activities.