Hydrocarbon to be the driver of Oman's future growth

Hydrocarbons will take the lead in driving Oman's future growth while the rate of growth will stay positive around 4 per cent, according to financial experts.

Oil prices are expected to remain near breakeven prices during 2023, which is $70 while liquidity conditions will remain a major concern.

Speaking at the 14th edition of Business Summit 2023, His Highness Sayyid Dr Adham bin Turki al Said, Assistant Professor of Economics at the College of Economics and Political Science at SQU, said that many factors contributed to the advantage of Oman's economic growth last year and will continue the streak this year too.

His Highness Sayyid Dr Adham bin Turki al Said, Assistant Professor of Economics at the College of Economics and Political Science at SQU

"Oman's GDP stood at RO 44 billion in 2022 while real year-to-year growth was up by 4.4 per cent backed upon a 10-per cent oil sector growth and 1.6 per cent non-oil growth. This scenario is owing to many reasons such as the fallout from the war in Ukraine, normalisation of Iran-Saudi relations, oil price, BRICS countries and decoupling of dollar which have helped Oman achieve this position," he said.

Hydrocarbons hold paramount economic importance because the economy is still heavily reliant on hydrocarbons despite the ongoing diversification. Hydrocarbons supplied over 75 per cent of government revenue and over 60 per cent of export revenue in the previous years.

Hydrocarbons encompass the constituents of the major fossil fuels, petroleum and natural gas, as well as plastics, waxes and oils.

The first quarter of 2023 has been highly promising for the Sultanate as revenues showed an increase of 7 per cent while expenditure decreased by 4 per cent, according to financial experts.

External trade balances continue to improve in 2023 as well while the FDI stock increased by 10 per cent during the first 3 quarters of 2022.

The summit held under the auspices of Shaikh Salim bin Mustahail al Mashani also featured a fireside chat with Pankaj Khimji, Adviser for Foreign Trade and International Cooperation with the Ministry of Commerce, Industry and Investment Promotion (MoCIIP).

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