There have been significant upgrades to the country’s fiscal prospects owing to increased economic performance, including growth in non-oil activities and energy production. According to Standard Chartered, there has been a huge upgrade of the fiscal surplus forecast for Oman in 2026 to 4.6 percent of GDP compared to the previous forecast of 0.5 percent of GDP. Standard Chartered further anticipates continued macroeconomic strength with forecasts of 3.5 percent real GDP growth in 2026 and 2027. Oman non-oil economic growth
The latest assessment points out the ongoing transformation process that has been boosted by investments made according to the vision of Oman 2040. There is notable improvement in the performance of manufacturing, logistics, and government sector operations. Underlining this structural momentum, Oman’s government debt ratio is on path to decline steadily to approximately 33 percent of GDP by the end of 2026, before contracting further to roughly 31 percent by late 2027. Alongside stronger fiscal metrics, the bank elevated its current-account balance expectations to a surplus of 5.0 percent of GDP in 2026 and 3.4 percent in 2027.
Beyond internal economic reforms, international market shifts are increasingly turning in the Sultanate’s favor. Global corporations re-evaluating supply chain vulnerabilities are looking to leverage Oman’s strategic geographical positioning and stable diplomatic relations. The nation’s maritime ports, special economic zones, and logistical infrastructure position it well to capture rising re-export business and long-term foreign direct investment. Bank executives highlighted that converting this newfound macroeconomic resilience into broad-based economic output remains the primary vehicle for sustaining long-term regional trade dominance.
Moreover, financial analysts emphasize that fiscal discipline and targeted infrastructure funding will remain central to insulating the Sultanate against external energy price volatility. By systematically pairing debt reduction with strategic capital deployment into key non-energy sectors, Oman is actively fortifying its sovereign credit profile while solidifying its reputation as one of the Gulf region’s most resilient emerging markets. Oman Daily Report
