Diversification: Oman’s non-oil sector drives national growth to $27 billion

Dubai: Oman's gross domestic product (GDP) rose by 0.8 per cent year-on-year to $27.15 billion (Dh99 billion) in Q1 or the first quarter of this year, driven by increased non-oil activities.

Non-oil activities reached $18.6 billion (Dh68.3 billion) by the end of the quarter, marking a 3.9 per cent increase from the same period in 2023, according to preliminary data from the National Centre for Statistics and Information,

This growth aligns with Oman's positive economic outlook, projecting a real growth rate of 1.5 per cent for 2024, supported by expanded gas production and ongoing diversification initiatives.

The government's commitment to governance and efficiency reforms, exemplified by the launch of the Future Fund Oman by the Oman Investment Authority in January, aims to attract foreign investment and enhance support for local small and medium-sized enterprises.

Future Fund Oman comprises a capital of $5 billion (Dh18 billion). The fund offers an array of funding opportunities for selected investors and partners looking to play a role in enhancing and stimulating the country’s economic landscape.

The data also indicated a decline in crude oil activities, which amounted to $7.7billion (Dh28 billion), down 4.4 per cent year-on-year. Similarly, natural gas activities saw a slight decrease of 0.1 per cent, totaling $1.3 billion (Dh4.7 billion) in the first quarter of 2024. Total industrial activities rose to $5.6 billion (Dh20.5 billion), compared to $5 billion (Dh18.3 billion) in the same quarter of the previous year.

These results underscore the Oman Investment Authority's pivotal role in fostering economic growth and stability in the region, driven by strategic investments and effective portfolio management. The Authority continues to uphold its mandate to oversee and develop national funds and assets, strengthen financial reserves, and implement key government policies aimed at advancing crucial economic sectors.