Diversification at play, with a few challenges attached
B1
LOW RISK for enterprise
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
Updated in January 2024.
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GDP | USD114.7bn (World ranking 64, World Bank 2022) |
Population | 4.6mn (World ranking 126, World Bank 2022) |
Form of state | Monarchy |
Head of government | Haitham bin Tariq Al Said (Sultan and Prime Minister) |
Next elections | 2027, legislative |
Strengths & Weaknesses
![Strenghts](/en_global/economic-research/country-reports/Oman/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-0-par/wrapper_copy_copy/wrapper/image.img.82.3360.png/1720687529774/plus.png)
- Fiscal and current account balances are in surplus thanks to oil and oil-related revenues, which is supporting the economic recovery and improving Oman’s debt maturity profile
- Positive diplomatic relations with all countries in the area, thanks to a moderate foreign policy and the absence of binding dependencies or affiliations (non-OPEC member)
- Enhanced regional influence qualifies the country as a credible additional supplier of refined and petrochemical products
![Weaknesses](/en_global/economic-research/country-reports/Oman/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-1-par/wrapper_copy/wrapper/image.img.82.3360.png/1720687542983/minus.png)
- Over-reliance on hydrocarbons (35% of GDP) exposes the country to oil price volatility
- Risk of increased costs for businesses due to an “Omanization” policy to replace expatriate workers in the private sector with Omani nationals
- Enhanced regional influence qualifies the country as a credible additional supplier of refined and petrochemical products
Economic Overview
Trade structure by destination/origin
(% of total, 2022)
Exports | Rank | Imports |
---|---|---|
China
35.9%
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1 |
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United Arab Emirates
8.9%
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2 |
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India
8.6%
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3 |
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Saudi Arabia
5.0%
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4 |
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Korea, Republic of
4.3%
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5 |
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Trade structure by product
(% of total, 2022)
Exports | Rank | Imports |
---|---|---|
Petroleum, petroleum products and related materials
34.7%
|
1 |
12.8%
Petroleum, petroleum products and related materials
|
Gas, natural and manufactured
21.4%
|
2 |
7.8%
Road vehicles
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Iron and steel
7.2%
|
3 |
7.6%
Iron and steel
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Organic chemicals
5.4%
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4 |
5.0%
Metalliferous ores and metal scrap
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Non-ferrous metals
3.5%
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5 |
4.6%
Other industrial machinery and parts
|
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