Skip to content Skip to Search
Skip navigation

Oman forecasts 2024 budget deficit despite higher revenue

Oman's finance minister Sultan Al Habsi said the budget estimates are designed to ensure that financing needs are met even if there is a decline in oil prices Oman News Agency
Oman's finance minister Sultan Al Habsi said the budget estimates are designed to ensure that financing needs are met even if there is a decline in oil prices

Oman expects a budget deficit of OMR640 million ($1.66 billion) in 2024, 1.5 percent of the country’s gross domestic product (GDP).

Total revenues are projected at OMR11.01 billion, up 9.5 percent from 2023 estimates, with non-oil revenues estimated at OMR520 million, the state-run Oman News Agency reported, citing the finance ministry statement.

Oil revenues are projected to reach OMR5.92 billion in 2024, lower than OMR6.9 billion estimated in 2023.

Expenditure is estimated to be OMR11.65 billion, an increase of 2.6 percent year on year.

The 2024 budget is calculated on an average oil price of $60 per barrel.

Finance minister Sultan Al Habsi stated that the budget estimates are designed to ensure that financing needs are met even if there is a decline in oil prices.

“The government will continue to pay the public debt and reduce it as much as possible.”

The preliminary results showed a budget surplus of OMR931 million in 2023, against an earlier estimated deficit of OMR1.3 billion.

In addition, the preliminary results indicated that the government reduced public debt from OMR17.6 billion to OMR15.2 billion in 2023.

The minister disclosed that the government expects to pay back OMR1.6 billion debt this year, adding that subsidies on fuel prices will continue.

Oman launched a medium-term fiscal programme in 2020 to reduce public debt, diversify revenue sources, and drive economic growth.

In November 2023, the International Monetary Fund said that Oman’s economic growth would rebound in 2024 on higher oil production and robust non-oil growth.

The Sultanate’s GDP growth is forecast to slow down this year to 1.3 percent from 4.3 percent in 2022 due to Opec+-related oil cuts.

Latest articles

Musicians perform at the Sharjah Ramadan Festival. Retailers offered discounts of up to 75% on local and international brands

Sharjah’s Ramadan retail sales peak at nearly $110m

Ramadan retail sales in Sharjah hit a new record high of AED400 million ($109 million) in 2024, reinforcing the positive outlook UAE companies had ahead of this year’s holy month. Sales jumped 25 percent year on year during the Sharjah Ramadan Festival 2024, which concluded last Saturday, the UAE state-run Wam news agency reported, quoting […]

Adnoc sought advice from investment banks on buying a significant stake in BP, a media report said

UAE’s Adnoc explored acquiring BP

Abu Dhabi National Oil Company (Adnoc) explored the possibility of acquiring British oil major BP but abandoned the plan as it did not fit into its strategic growth objectives, a media report said.  The talks did not advance beyond the initial stages, Reuters reported, citing informed sources.  The UAE state oil company also sought advice […]

Nature, Undersea cables account for as much as 90 percent of Europe-Asia telecommunications, Water

Iraq and Kuwait team up for European telecom corridor

Iraq’s Informatics and Telecommunication Public Company, a division of the Ministry of Communications, has signed an agreement with Kuwait’s Zajil Telecom to create a telecommunications corridor from the Gulf region to Europe, transiting through Iraq and Turkey. The new route will pass through Iraqi sea and land ports. Iraq’s minister of communications Hayam Al-Yasiri said […]

An artist's impression of part of the Diriyah Square development

Diriyah Square planned for historic Riyadh district

A public space featuring 400 retail outlets and 100 restaurants and cafes is planned for the historic Riyadh district of Diriyah. Diriyah Square will be announced next week at the World Retail Congress in Paris and aims to attract a combination of international retail brands and local artisans.  Diriyah Gate Development Authority group CEO Jerry […]