Muscat: The total estimated revenues for the Sultanate of Oman's General State Budget for 2026, calculated based on an average oil price of 60 US Dollars per barrel, amounted to approximately RO 11.447 billion. This reflects an increase of 2.4 percent over the approved revenues for 2025.
According to Oman News Agency, total public expenditure was estimated at approximately RO 11.977 billion, rising by 1.5 percent from the approved expenditure for 2025. Meanwhile, the estimated budget deficit for 2026 stands at approximately RO 530 million, a decrease of 14.5 percent from the deficit approved in the 2025 budget, constituting 4.6 percent of total revenues and 1.3 percent of the Gross Domestic Product (GDP).
This was announced during a press conference held at the Ministry of Finance to disclose details of the financial framework for the Eleventh Five-Year Development Plan (2026-2030) and the General State Budget for the fiscal year 2026, in addition to the preliminary results of the General State Budget for the fiscal year 2025. Sultan Salim Al-Habsi, Minister of Finance, affirmed the continued growth of Oman's economic activity. Statistical data indicates that the projected real GDP (at constant prices) by the end of 2025 is expected to reach approximately RO 39.2 billion, compared to RO 34.5 billion at the end of 2021, achieving a growth rate of 14 percent since the start of the (Tenth) Plan.
In his address, the minister added that due to the facilitation of the business environment, reduction of procedures, growing confidence in the Omani economy, alongside the dedicated efforts by specialists to attract investments, data indicates a growth in Foreign Direct Investment (FDI) in the Sultanate of Oman. By the third quarter of 2025, FDI reached RO 30.3 billion, marking an increase of approximately 71 percent compared to the same period in 2021.
He elaborated that data points to exceptional performance by Muscat Stock Exchange, confirming that governmental efforts to enhance the efficiency and investment appeal of the securities market have yielded the desired results. The market capitalization has increased by approximately 60 percent from its 2020 indicators, reaching over RO 32.2 billion. Additionally, trading value during this year surged by over 1013 percent compared to 2020, exceeding RO 4.9 billion, thereby registering as one of the best-performing indicators among GCC markets for 2025, and ranking fourth globally.
The minister stated that regarding government investments, Oman Investment Authority has contributed to economic growth by restructuring government companies and managing domestic and foreign investments. The Authority's assets grew to approximately RO 21 billion by the end of 2025. Its investment portfolio has diversified across about 50 countries, forming economic and investment alliances that yield direct and indirect benefits, including the development of specialized Omani human resources and the transfer of knowledge and technology to the Sultanate of Oman.
He pointed out that the Future Fund Oman has directly contributed to attracting several investments, supporting private sector institutions, and accelerating the growth pace of startups and small and medium enterprises (SMEs) locally and abroad. The total investments approved by the Fund till the end of 2025 amounted to 164 projects with a financial commitment of RO 462 million, including RO 104 million in investments for startups and SMEs.
The Minister of Finance confirmed that the Sultanate of Oman has witnessed a tangible improvement in its social, financial, and economic indicators. This improvement is driven by the recovery in global oil prices and government policies aimed at enhancing fiscal sustainability. The fiscal breakeven oil price has decreased from over 100 US Dollars before the Tenth Five-Year Plan to approximately 68 US Dollars per barrel of crude oil in 2025. Efforts continue to reduce it to lower levels to mitigate financial shock risks.
He said that as a result of the improvement in oil prices during the Tenth Five-Year Plan (2021 - 2025), the General State Budget achieved additional revenues amounting to RO 11.291 billion. The government was able to utilize these amounts in a balanced manner between economic and social dimensions and debt reduction.
He added that the total amounts allocated for governorate development by the end of 2025 reached RO 983 million, compared to the amount approved in 2021, which was RO 285 million. These allocations include completed projects and others in various stages of completion.
Regarding social aspects, the minister explained that the government directed its attention to projects directly related to the citizen to elevate the social, educational, and health systems, projects alongside in the roads and housing sectors. Support for the social protection system, from which more than 1.5 million citizens currently benefit from its programs, was allocated approximately RO 577 million for 2025. This allocation has been increased in the 2026 budget to about RO 614 million.
He stated that tenders for the construction of 113 new schools were awarded during the Tenth Five-Year Plan, with 49 schools already received and the remaining 64 schools to be delivered successfully during 2026 and 2027. He noted that the budget of the Ministry of Education increased from RO 1.386 billion in 2020 to reach RO 1.525 billion for 2026.
As for the health sector, the minister pointed out that the construction of 11 hospitals and 19 health centers and institutions was approved during the Tenth Five-Year Plan. Four hospitals and 12 health centers and institutions have been received during the plan years. Additionally, it is planned to receive 5 hospitals and 5 health centers and institutions during this year, 2026.
He highlighted that the implementation of about 2,525 kilometers of main and internal roads across governorates was awarded at an estimated cost of RO 2.7 billion. The housing sector was supported with a total of RO 545 million during the period of the Tenth Five-Year Development Plan.
He confirmed that a dedicated pathway for Economic Transformation Projects has been established within the development budget. This pathway supports maximizing the economic return for governorates and targeted economic sectors. An amount of RO 400 million annually has been allocated to this pathway.
He stated that if additional revenues materialize due to an increase in oil prices during the current year, they will be utilized to cover the estimated deficit in the General State Budget, which is RO 530 million, and to repay due loan installments.
Responding to a question regarding promotions, the Minister of Finance affirmed that funds will be provided to all government entities to promote the remaining employees from the 2016 seniority. He also noted that the promotion system will be subject to new regulations starting from 2026.
For his part, Abdullah Salim Al Harthy, Undersecretary of the Ministry of Finance, reviewed the preliminary results of the General State Budget for the fiscal year 2025. The results indicate a 5 percent increase in general revenues, reaching approximately RO 11.760 billion.
He stated that this rise is primarily attributed to a 10 percent increase in net oil revenues, recording about RO 6.403 billion compared to the budgeted RO 5.830 billion, and a 0.4 percent increase in net gas revenues, recording about RO 1.784 billion compared to the budgeted RO 1.777 billion.
He said that the preliminary results of the financial performance for 2025 indicated a 4 percent increase in total public expenditure, recording approximately RO 12.240 billion compared to the approved amount in the General State Budget of RO 11.800 billion.
He clarified that when adding projects with developmental impact, the total investment expenditure is expected to reach about RO 1.400 billion. Total contributions and other expenditures also rose by 6 percent, reaching about RO 2.475 billion compared to the budgeted amount of RO 2.345 billion.
The Undersecretary of the Ministry of Finance explained that the preliminary results of the financial performance for 2025 indicate a financial deficit of approximately RO 480 million Omani, compared to the estimated deficit in the General State Budget of RO 620 million, reflecting a decrease of about 23 percent.
He stated that in line with the objectives of the General State Budget for the fiscal year 2026, aimed at maintaining financial, economic, and social stability, general state revenues were estimated at approximately RO 11.447 billion. This calculation is based on an average oil price of 60 US Dollars per barrel.
He added that current expenditures in the approved budget for 2026 were estimated at approximately RO 8.771 billion, constituting 73 percent of total public expenditure. Defense and security expenditures in the approved budget for 2026 were estimated at about RO 3.160 billion.
He pointed out that public debt service expenditure was approved in the 2026 budget at approximately RO 911 million Omani, based on the expected interest payments for existing loans and those planned for repayment in 2026.
He mentioned that the government has allocated approximately RO 100 million annually for the employment program during the years of the Eleventh Five-Year Development Plan (2026-2030). This includes 1.2 percent of the value of contracts and procurements concluded with government units.
He stated that contributions and other expenditures in the approved budget for 2026 were estimated at about RO 1.906 billion, constituting 16 percent of total public expenditure. The allocation for supporting the social protection system amounted to approximately RO 614 million.
In the context of maintaining expenditure on social and essential sectors, he clarified that the General State Budget for the fiscal year 2026 allocated approximately