MUSCAT,: The generous allocation of RO 50 million, in accordance with Royal Directives marking the sixth anniversary of His Majesty Sultan Haitham bin Tarik’s accession, will help support economic and investment-oriented projects that generate employment opportunities for citizens and contribute to the financial sustainability of the Sultanate of Oman.

The allocation for economic and investment-oriented projects was enabled by an increase in the budget for the governorates’ development programme under the Eleventh Five-Year Development Plan (2026–2030), from RO 220 million to RO 270 million.

Oman’s 2026 budget reflects a well-considered transition of the national economy from a phase of financial stability to one of controlled growth. The current approach prioritises development and investment spending without compromising fiscal discipline, thereby supporting the sustainability of public finances and enhancing the economy’s resilience to shocks.

According to preliminary results for the 2025 budget, key financial indicators showed a 23% reduction in the annual deficit, from RO 620 million to RO 480 million. Public spending increased by approximately RO 1 million to cover social and economic expenditures, bringing total public spending by the end of 2025 to around RO 12.240 billion — representing a 4% increase compared to the initial budget allocation at the beginning of the year. Oman also saw its sovereign ratings upgraded to investment grade by all agencies, reflecting continued improvement in public finance indicators and the country’s external financial position.

In recent remarks, Dr Nasser bin Rashid al Maawali, Under-Secretary of the Ministry of Economy, noted that Oman has strengthened its social, economic and financial stability over the past six years and continues to pursue sustainable development under the Eleventh Five-Year Plan. He added that current economic conditions provide greater flexibility in economic planning options.

The State Budget Guide for the current fiscal year indicates that Oman’s policy framework is anchored in fiscal sustainability, economic diversification and sustainable social development. The financial framework of the Eleventh Five-Year Development Plan is therefore a cornerstone of the government’s commitment to maintaining public debt within safe limits, enhancing and diversifying non-oil revenues, improving the efficiency of public spending and continuing to finance priority development projects. This includes maintaining subsidies for essential goods and services; and strengthening the social protection system to ensure social and economic stability.

The financial framework seeks to strike a balance between fiscal sustainability and economic growth. This is reflected in plans to raise the contribution of non-oil revenues to around 37.4% of total public revenues. Current expenditures are estimated to average RO 8.985 billion annually during the Plan period, with approximately RO 1.3 billion allocated each year for development spending and economic transformation projects. In addition, average annual allocations for the social protection system are estimated at around RO 668 million.

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