MENA+ Edition 
Egypt Edition 
UAE Edition 
Saudi Edition 
MENA <> India Corridor 
Logistics (MENA) 
Climate (MENA) 
Share
Read Full Issue 
Oman’s budget deficit shrank to OMR 25 mn (USD 65 mn) in 1Q 2026, narrowing from the OMR 136 mn (USD 353.7 mn) gap recorded one year earlier, according to Finance Ministry figures (pdf).
In reality, the sultanate’s fiscal performance is likely even better than these figures suggest — the accounting method used to record oil revenues means the quarter’s results don’t yet capture the windfall from surging crude prices. Oil sales are not booked at the point of sale, but only after delivery and financial collection are complete, the Finance Ministry says. Crude sold in January, for example, is delivered in March and proceeds are collected in April.
The breakdown: Total state revenues climbed 13% y-o-y to OMR 2.99 bn (USD 7.78 bn), outpacing a 9% rise in expenditure to OMR 3.01 bn (USD 7.83 bn). Net oil revenues rose 5% y-o-y to OMR 1.54 bn, with the realized price averaging USD 64 / barrel. Net gas revenues delivered a standout performance, rising 36% y-o-y to OMR 593 mn. Current revenues, which capture non-hydrocarbon receipts and serve as a barometer of Oman’s diversification push, rose 13% to OMR 817 mn.
On the spending side, development expenditure — which funds Oman’s economic transformation projects — rose 31% y-o-y to OMR 334 mn (USD 868.7 mn), equivalent to 26% of the full year’s budgeted development spend. Social protection support hit OMR 154 mn, electricity subsidies were at OMR 80 mn, and petroleum product subsidies clocked in at OMR 17 mn.
Public debt held steady at OMR 14.5 bn at the end of the quarter, inching up just 2% y-o-y and remaining flat q-o-q.
The promising fiscal picture comes as inflation in April eased slightly to 3.2%, bringing the January-April average to 2.6%, according to data from the National Center for Statistics and Information (pdf). The cooling headline figure came despite vegetable prices jumping 25% and fruit prices rising 11.6% y-o-y, bringing the total food and non-alcoholic beverage inflation rate to 6.2%. The housing, water, electricity, gas and fuels basket remained flat, serving as a reminder of the cushioning role of the utility and fuel subsidies that continue to absorb a meaningful share of recurrent spending.
