The IMF has given a solid endorsement to Oman, pointing to its low inflation, consistent fiscal and current account surpluses, and limited government debt.
In comments published after a two-week trip to the country in November, IMF mission chief for Oman Abdullah Al-Hassan said “the economic outlook remains favourable.”
Oman’s fortunes have been turned around since Sultan Haitham Al-Said came to power at the start of the decade — in part because of a willingness to take politically risky decisions; an income tax on high earners is due to be introduced in 2028, in a first for the Gulf.
Even so, there are plenty of economic pressures. Government revenue was down 8% year-on-year in the third quarter amid lower oil prices, but spending edged up 2%. The IMF has urged “continued progress” on tax and subsidy reforms to keep the country’s finances on a sustainable path.