Oman’s economy expected to grow 4.5% in 2026

Oman, a Gulf nation near Iran, is forecasted to achieve a 4.5% growth in its economy by 2026, according to projections released by the International Monetary Fund (IMF). The IMF mission to Oman, led by Abdullah AlHassan, concluded on Sunday, 8th September. AlHassan reported that the country's real GDP growth reached 3.8% in the first half of this year and is expected to continue growing to 4.5% at the end of 2026.

This projection is backed by stronger hydrocarbon production, which compensates for the decline in construction, manufacturing, and tourism sectors.

The IMF chief mentioned that inflation in Oman rose to around 3% from January to September 2025, primarily due to increased costs in food and transportation. Oman's fiscal and external accounts remain in surplus, and the fiscal balance is expected to stay robust in 2026. The mission's chief emphasized that fiscal policies in 2026 aim to alleviate the impact of the ongoing war, proposing temporary, targeted, transparent measures, such as expenditure reprioritization, to support vulnerable households and viable firms.

AlHassan stressed the importance of additional oil revenues for rebuilding reserves, enabling investment in resilience and diversification. He called for sustained fiscal reforms over the medium term to address rising regional and global uncertainty. The IMF chief highlighted several priorities, including promoting the efficient allocation of economic resources, reducing the state's role in areas where private participation is viable, advancing labor market reforms, fostering trade integration, and enhancing resilience to natural disasters, all outlined within Oman's Vision 2040 strategy for knowledge-based economic diversification.