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The Sultanate of Oman announced its General State Budget for 2026, with total estimated revenues projected at OMR 11.447 bn, based on an average oil price of $60 per barrel. This represents a 2.4 per cent increase over approved revenues for 2025.
Total public expenditure for 2026 is estimated at approximately OMR11.977 bn, up 1.5 per cent from the previous year. The estimated budget deficit stands at OMR530m, a 14.5 per cent decline from 2025, accounting for 4.6 per cent of total revenues and 1.3 per cent of GDP, according to an Oman News Agency report.
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The budget was unveiled during a press conference at the Ministry of Finance, detailing the financial framework for the Eleventh Five-Year Development Plan (2026-2030) alongside preliminary results for 2025.
Sultan Salim Al Habsi, Minister of Finance, emphasised Oman’s ongoing economic growth, noting that the projected real GDP at constant prices is expected to reach OMR39.2bn by the end of 2025, up from OMR34.5bn in 2021, a 14 per cent increase during the Tenth Five-Year Plan.
Inflation remained stable, with an average rate of 0.9 per cent through November 2025, supported by government policies on petroleum, electricity, water subsidies, and essential commodities.
Investment and market performance
Minister Al-Habsi highlighted the rising confidence in Oman’s business environment, which has driven Foreign Direct Investment (FDI) to OMR30.3bn by Q3 2025, a 71 per cent increase since 2021.
The Muscat Stock Exchange also showed strong performance, with market capitalisation rising 60 per cent since 2020 to OMR32.2bn.
Trading values surged by over 1013 per cent compared to 2020, positioning Oman among the GCC’s top-performing markets in 2025 and ranking fourth globally.
The Oman Investment Authority contributed significantly to economic growth, with assets reaching OMR21bn by the end of 2025.
Investments spanned 50 countries, promoting knowledge transfer, human resource development, and revenue contributions of over OMR4.4bn during the Tenth Five-Year Plan.
The Future Fund Oman approved 164 projects worth OMR462m by 2025, including OMR104m in investments for startups and SMEs, supporting private sector growth and innovation.
Fiscal discipline and non-oil growth
Fiscal improvements have been achieved due to rising global oil prices and government measures to enhance fiscal sustainability. The fiscal breakeven oil price fell from over $100 per barrel pre-Tenth Plan to $68 per barrel in 2025. Non-oil revenues also grew by 41 per cent, from OMR2.1bn in 2020 to OMR3.5bn by the end of 2025.
Additional revenues from the Tenth Five-Year Plan, totaling OMR11.291bn, were allocated strategically between social spending (OMR2.687bn), economic expenditure (OMR3.837bn), and debt reduction (OMR4.767bn). Governorate development projects received OMR983m, up from OMR285m in 2021.
Social development and infrastructure investment
Social spending remains a priority. The 2026 budget allocates OMR614m for the social protection system, benefiting over 1.6 m citizens.
Education will receive 4,000 new teachers, while the Ministry of Health will hire 3,706 new staff. A total of 113 new schools and 11 hospitals, along with 19 health centers, are under construction, with many expected to be completed by 2026-2027.
Infrastructure development continues with 2,525 km of roads planned at an estimated OMR2.7bn. Housing initiatives, including the “Iskan” program, received OMR545 m during the Tenth Plan, with a reinforced loan portfolio and reduced waiting times.
The government also set aside OMR400m annually for Economic Transformation Projects, increasing total allocations for strategic projects to OMR1.3bn in the Eleventh Five-Year Development Plan.
2026 budget allocation highlights
Total revenues: OMR11.447bn (net oil: OMR5.752bn, net gas: OMR1.961bn, non-oil: OMR3.734bn)
Total expenditure: OMR11.977bn
Current expenditure: OMR8.771bn (73 per cent of total)
Defense & security: OMR3.160bn
Civil ministries: OMR4.700bn
Public debt service: OMR911m
Contributions and other expenditures: OMR1.906bn (16 per cent of total)
Social and essential sectors: OMR5.2bn (44 per cent of total)
Education receives 40 per cent of the social and essential sector allocation, followed by Social Security and Welfare (26 per cent), Health (25 per cent), and Housing (9 per cent).
Higher education initiatives target 11,425 new scholarship students, with ongoing upgrades to Sultan Qaboos University and the University of Technology and Applied Sciences.
Debt and employment measures
The government plans to finance 2026 needs through domestic borrowing of OMR902m, external borrowing of OMR990m, and drawing OMR400m from reserves. Public debt is projected to reach OMR14.6bn, representing 36 per cent of GDP.
Additionally, OMR100m annually has been allocated for employment programs under the Eleventh Five-Year Plan, including targeted procurement initiatives to reduce unemployment and promote job stability.
Preliminary 2025 financial results
Abdullah Salim Al Harthy, Undersecretary of the Ministry of Finance, reported a 5 per cent increase in general revenues for 2025, totalling OMR11.760bn, driven by a 10 per cent increase in net oil revenues (OMR6.403bn) and a 0.4 per cent increase in net gas revenues (OMR1.784bn).
Total public expenditure rose 4 per cent to OMR12.240bn, with developmental projects contributing to an expected total investment expenditure of OMR1.400bn. Subsidies and social spending increased to support petroleum products, electricity, water, and low-income families. The 2025 financial deficit decreased 23 per cent to OMR 480 m, aided by favorable oil prices.
