Oman revenue hit by drop in oil and gas income

Oman’s oil revenue recorded a double-digit decline in the first nine months of 2025 due to lower crude prices and production.

Net oil revenue – total income after deducting costs – fell 13 percent year on year to OMR4.7 billion ($12.2 billion) between January and September, the state-run Oman News Agency reported, citing a quarterly bulletin from the finance ministry.

Net gas revenue fell 4 percent to OMR1.3 billion, following a change in the methodology for collecting such income.

Public spending increased 2 percent to OMR8.9 billion during the nine-month term. The increase was attributed to higher development expenditure, which rose by OMR263 million.

Subsidy allocations included OMR378 million to the electricity sector, OMR424 million for social welfare and OMR55 million for oil products, according to the report. 

Moreover, the government transferred OMR300 million to future debt obligations.

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Public debt stood at OMR14.7 billion in the first nine months of 2025, up from OMR14.4 billion a year earlier. 

The increase stemmed from the refinancing of domestic debt instruments in line with the government’s borrowing plan and capitalising on improved debt market conditions, the report said.

The International Monetary Fund has praised Oman’s economic and fiscal management following a staff visit to the country, which concluded this week.

“Growth is projected to strengthen over 2025-26 as oil production cuts unwind and non-hydrocarbon activity continues to expand,” said Abdullah AlHassan, the IMF mission chief for Oman, after conducting meetings in Muscat.