Diversification at play, with a few challenges attached

B1

LOW RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • 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
  • 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
  • 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
  • A conflict resurgence in the region could affect economic and trade performance

Trade structure by destination/origin

(% of total, 2022)

Exports Rank Imports
China 35.9%
1
28.3% United Arab Emirates
United Arab Emirates 8.9%
2
12.6% Saudi Arabia
India 8.6%
3
8.8% India
Saudi Arabia 5.0%
4
7.6% China
Korea, Republic of 4.3%
5
6.1% Qatar

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
Iron and steel 7.2%
3
7.6% Iron and steel
Organic chemicals 5.4%
4
5.0% Metalliferous ores and metal scrap
Non-ferrous metals 3.5%
5
4.6% Other industrial machinery and parts
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