Sunday 04 / January / 2026
Muscat: Oman’s 2026 State Budget, announced on Thursday, has received broad praise from economists, analysts, and members of the public, who say it reflects fiscal balance, sustained economic growth, and a strategic shift toward opportunity-driven development aligned with Oman Vision 2040.
The total estimated revenues of the General State Budget for 2026 amount to approximately OMR11.447 billion, based on an assumed average oil price of USD60 per barrel, representing a 2.4 percent increase over the approved revenues for 2025.
Omar Al Nabhani, a financial expert, highlighted the scale of funding allocated to economic transformation. “What stood out for me is the allocation of OMR1.3 billion for economic transformation projects across various sectors in a single year. This is a bold figure and creates real opportunities for small and medium enterprises,” he said.
Rashid Al Nuaimi, a citizen working in public sector, noted that the budget reflects Oman’s continued commitment to a balanced and disciplined fiscal approach. “There is a clear focus on sustainability and risk reduction, which strengthens confidence in the resilience of the national economy,” he said.
Al Nuaimi added that the Ministry of Finance’s financial statement signals a strategic transition from managing challenges to managing opportunities.
“The budget is no longer merely a fiscal control tool; it has become a driver of growth and productivity. Disciplined public spending demonstrates fiscal maturity, ensuring national priorities are met without compromising social commitments or essential services.”
He further stressed that diversifying non-oil revenue sources has become an irreversible strategic choice under Oman Vision 2040, reducing dependence on volatile energy markets.
“The financial statement sends a reassuring message to investors that Oman’s economic environment is increasingly stable and predictable—an essential factor for attracting long-term investments,” he said.
Al Nuaimi also praised the emphasis on transparency, noting that the clarity of fiscal indicators helps both the public and private sectors better understand the country’s economic direction.
“Overall, the 2026 budget reflects a realistic yet ambitious vision—stronger public finances, a diversified economy, and sustainable development that serves present and future generations.”
Speaking on Oman TV, Abdullah bin Salem Al Harthi, Undersecretary of the Ministry of Finance, said the government has worked in recent years across three parallel tracks to ensure a tangible societal impact.
“These tracks include enhancing social spending and improving essential services, stimulating economic activity and supporting institutions, and strengthening the state’s financial position,” he said.
He explained that the 2026 budget aims to achieve social, financial, and economic stability, while maintaining flexibility between development priorities, economic diversification, and fiscal sustainability.
On the social front, the budget prioritises healthcare and education, comprehensive social protection, expanded insurance coverage, and continued government support. It also focuses on training and employment programmes for job seekers in both public and private sectors, increasing housing loan allocations, and reducing waiting periods for beneficiaries.
Improving the business environment, enhancing local content, and advancing government projects through digital solutions are also key objectives of the budget. The 2026 budget allocates approximately OMR5.2 billion, accounting for 43 percent of total government spending, to social and essential sectors, including education, social protection, housing, and health. Education receives the largest share, with an allocation of OMR 2.1 billion.
