Latest news with #OmanGovernment
Times of Oman
03-06-2025
- Business
- Times of Oman
IMF experts commend Oman's continued economic growth
Muscat: The International Monetary Fund (IMF) mission concluded its preliminary meetings with the government of the Sultanate of Oman during the period 21-29 May 2025 within the framework of Article IV consultations for the year 2025. The Fund's team and the Omani side discussed the most prominent recent economic developments, fiscal and monetary policies, and structural reform progress in the Sultanate of Oman. At the conclusion of the visit, the IMF commended Oman's continued economic expansion, with real GDP growth reaching 1.7% in 2024, up from 1.2% in 2023, primarily driven by strong performance in non-hydrocarbon sectors, notably manufacturing, logistics, tourism, and renewable energy. Growth is projected to accelerate to 2.4% in 2025 and 3.7% in 2026, supported by the gradual lifting of OPEC+ oil production cuts and ongoing economic diversification efforts. Inflation remains contained, recorded at 0.9% year-on-year for the first four months of 2025. The IMF acknowledged the government's prudent fiscal stance, with a fiscal surplus of 3.3% of GDP in 2024, despite increased investment in infrastructure and essential public services. The surplus is expected to moderate to an average of 0.5% of GDP during 2025–2026, reflecting lower oil prices, but is forecast to strengthen over the medium term. In the area of fiscal management, the IMF noted the reduction in public sector debt to 35.5% of GDP in 2024, alongside a continuing commitment to fiscal reforms and investment in priority sectors. Structural reforms across the public sector, including improvements in State Owned Enterprises (SOEs) governance by Oman Investment Authority. The IMF confirmed that Oman's banking sector remains robust, supported by strong asset quality, ample capital and liquidity buffers, and sustained profitability. Private sector credit growth continues to be solid, underpinned by an expanding deposit base and a positive net foreign asset position. The IMF also welcomed the CBO's continued progress in enhancing its liquidity management framework, alongside broader financial sector initiatives aimed at expanding access to credit and deepening financial inclusion. The external sector also performed positively, with a current account surplus of 2.2% of GDP in 2024. While a temporary shift to a modest deficit is projected in 2025–2026 due to softer oil prices and slower export growth, the balance is expected to return to surplus as hydrocarbon output gradually ramps up. The IMF further recognized Oman's steady progress in implementing structural reforms. These include tax administration modernization by Oman's Tax Authority, operational success of Future Fund Oman in mobilizing private capital, and active efforts to develop the renewable energy sector, including green hydrogen initiatives. The upcoming 11th Five-Year Development Plan (2026–2030) will build on these gains to accelerate economic diversification under Oman Vision 2040. The Central Bank of Oman expressed appreciation for the IMF's positive assessment and remains committed to maintaining financial stability, advancing banking sector resilience, and supporting the Sultanate of Oman's vision for a diversified and sustainable economy.
Zawya
29-05-2025
- Business
- Zawya
Eco-tourism in Oman: Vital resource shaped by nature, location
MUSCAT -- Oman is stepping up its efforts to carve out a prominent place on the global tourism map--particularly in the realm of eco-tourism--by capitalizing on its diverse natural landscapes and strategic location at the crossroads of land and sea. With a unique blend of deserts, mountains, valleys, coastal islands, and a rich marine ecosystem, the Sultanate is home to a remarkable variety of flora and fauna. This natural wealth has become central to Oman's broader vision for sustainable development and economic diversification. Under the Oman Tourism Strategy 2040, the government has outlined a clear commitment to accelerating tourism growth through sustainable practices and maximizing the country's natural and cultural assets. Tourism contributed 2.4 percent to the Gross Domestic Product (GDP) in 2023 and recorded a sharp 36.7 percent increase in incoming tourists. Authorities expect this momentum to continue, driven by targeted promotional campaigns. Eco-tourism has become a central focus in the national strategy--not only to elevate Oman's status as a regional and global tourism hub but also to reduce dependence on oil revenues and boost government income through diversified sources. Oman is investing in the preservation of its nature reserves, educating the public on conservation, and encouraging responsible tourism. These goals are closely aligned with the country's environmental policy framework, which seeks to balance economic growth with the protection of resources for future generations. So far, the Sultanate has designated 26 sites as official nature reserves, ranging from the Arabian Oryx Sanctuary and Al-Saleel National Park to the Daymaniyat Islands and the rocky landscapes of Jebel Samhan. Dozens more are under review, with nine sites nearing official recognition. In a major step forward, Oman announced in May the signing of nine environmental investment agreements across seven nature reserves. These projects aim to strengthen sustainable tourism, protect biodiversity, and support environmental education--all within the framework of a long-term green economic vision that targets net-zero emissions by 2050. Oman's natural offerings are as varied as they are breathtaking. From the fjords of Musandam, a top diving destination, to the coastal beauty of Muscat's beaches, the mountain springs of the Green Mountain, and the ancient water channels of the interior region. Meanwhile, Southern Dhofar stands out with its white-sand beaches, mountains, expansive valleys, desert landscapes, freshwater springs, and intricate cave systems--making it a top choice for eco-tourism enthusiasts.
