Oman Releases 2026 Budget — Here’s Where the Money’s Going

Oman has officially signed off on its 2026 national budget, and it’s setting the tone for the years ahead. Alongside it, the sultanate has launched the next phase of its Vision 2040 economic programme, with a clear goal: hit 4% average economic growth through 2030 while continuing to move away from oil dependence.

Here’s what you need to know—without the fluff.

What the 2026 Budget Looks Like

The government expects revenues of 11.45 billion Omani rials, slightly higher than last year, based on an assumed oil price of around $60 per barrel. Public spending is set at about 12 billion rials, marking a modest increase aimed at keeping services running while staying fiscally careful.

Smaller Deficit, Tighter Spending

Oman is projecting a budget deficit of 530 million rials, down nearly 15% from last year. That deficit equals just 1.3% of GDP, signaling tighter control over public finances and a push for long-term stability.

Vision 2040 Moves Forward

The budget launch comes hand-in-hand with Oman’s 11th five-year development plan, which runs until 2030. A major highlight: 400 million rials a year has been set aside for economic transformation projects—think diversification, productivity, and future-ready sectors.

Officials say the plan focuses on:

• Expanding non-oil revenue

• Keeping public debt within safe limits

• Supporting social development

• Creating more jobs for Omanis

• Gradually shifting toward a low-carbon economy

Growth, Inflation, and the Bigger Picture

The government is aiming to keep inflation low at around 1.4% in 2026, while laying the groundwork to eventually push GDP growth closer to 5%. Oil will still matter, but its role is slowly shrinking as non-oil and gas revenues grow.

For 2026, oil revenue is expected to make up about half of total income, with non-oil sources contributing 33% and gas 17%.

Jobs and What’s Next

There’s also good news on employment. Oman created over 51,000 new jobs for nationals last year, beating its own target and more than doubling the previous year’s figure. Officials say this reflects stronger coordination between government and the private sector.

Looking ahead, the country is still on track to introduce personal income tax in 2028, a big step in its diversification journey—though authorities say rates will remain low to ease the impact on residents.