## Beyond Oil: Accelerating Export Diversification for Sustainable Growth - Oman

_Selected Issues Papers, February 5, 2026_

## Source details

**Canonical URL:** [Beyond Oil: Accelerating Export Diversification for Sustainable Growth - Oman](https://www.imf.org/en/publications/selected-issues-papers/issues/2026/02/05/beyond-oil-accelerating-export-diversification-for-sustainable-growth-oman-573733)

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## Bibliographic details
- Authors: Mohamed Belkhir, Takako Iwaki, Nareg Mesrobian
- Published: February 5, 2026
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229039604.018

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### Context and objective
- Since oil was discovered in the 1960s, Oman’s economy and living standards have improved significantly.
- The economy remains vulnerable: economic growth and external and fiscal balances are highly sensitive to oil price swings.
- Objective: analyze barriers to export diversification and identify policy levers to build a competitive nonhydrocarbon export sector and strengthen economic resilience to oil price volatility.

### Key findings
- Nonhydrocarbon output is composed primarily of non-tradables and low-added value sectors that:
  - Rely on low-skilled labor.
  - Offer limited productivity gains.
  - Generate limited foreign currency receipts.
  - Have limited employment potential for diversified, high-value growth.
- Current diversification efforts have established important groundwork, but further progress is needed to achieve meaningful export diversification beyond oil and gas.
- Empirical analysis indicates that improvements in government effectiveness and logistics performance could significantly raise nonhydrocarbon exports.

### Policy recommendations
- Accelerate structural reforms to:
  - Improve product sophistication of nonhydrocarbon sectors.
  - Deepen export diversification beyond oil and gas.
- Combine reforms with well-targeted state support to:
  - Enhance competitiveness of tradable nonhydrocarbon sectors.
  - Foster productivity gains and higher-value foreign currency–earning exports.
- Prioritize measurable improvements in:
  - Government effectiveness.
  - Logistics performance.

### Publication and metadata
- Authors: Mohamed Belkhir, Takako Iwaki, Nareg Mesrobian
- Date: February 5, 2026
- Publication: Selected Issues Papers
- Pages: 22
- Volume: 2026
- Issue: 008
- Series: Selected Issues Paper No. 2026/008
- DOI: https://doi.org/10.5089/9798229039604.018
- Stock No: SIPEA2026008
- ISBN: 9798229039604
- ISSN: 2958-7875

*Source: Beyond Oil: Accelerating Export Diversification for Sustainable Growth - Oman (Selected Issues Papers, February 5, 2026).*

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/02/05/beyond-oil-accelerating-export-diversification-for-sustainable-growth-oman-573733_