IMF Staff Country Reports

This 2024 Article IV Consultation highlights that supported by favorable hydrocarbon revenues and steadfast reform efforts, Oman’s economy continues to expand amidst low inflation. Fiscal and external surpluses continued in 2024 and are expected over the medium term. The banking sector remains sound. Profitability has recovered to pre-pandemic levels, capital and liquidity buffers are ample, while asset quality remains strong. Banks’ net foreign assets turned positive by end of 2023 for the first time since 2014. The authorities continue pursuing prudent fiscal management, amidst the successful rollout of the social protection law. The 2025 budget is set to preserve fiscal discipline, further lowering the nonhydrocarbon primary deficit, while maintaining spending on social safety nets broadly unchanged relative to 2024. The banking sector is sound, amidst continued efforts to strengthen regulatory and supervisory frameworks. Sustained implementation of reforms under Oman Vision 2040 will be key to achieving sustainable, job rich, and private sector-led nonhydrocarbon growth. The new social protection law has been successfully rolled out. Labor market reforms are ongoing, supported by the new labor law.