Updated
Updated · Muscat Daily · Aug 23
Oman Lifts H1 Development Spending 16% to RO798 Million as Revenue Rises 13%
Updated
Updated · Muscat Daily · Aug 23

Oman Lifts H1 Development Spending 16% to RO798 Million as Revenue Rises 13%

2 articles · Updated · Muscat Daily · Aug 23

Summary

  • RO798 million in development spending was deployed in the first half of 2026, up from RO688 million a year earlier and equal to 61% of Oman’s RO1.3 billion full-year allocation.
  • The increase came as the government accelerated project execution and economic transformation plans, including a new RO400 million annual envelope under the 2026-2030 Five-Year Plan, of which RO146 million had been spent by June.
  • RO2.706 billion also went to social sectors and basic services, with education taking 39%, health 26%, security and social welfare 26%, and housing 9%.
  • Public revenue rose 13% year on year to RO6.602 billion while expenditure increased 9% to RO6.619 billion, leaving a fiscal deficit of RO17 million.
  • The spending push supports Oman Vision 2040 and the 11th Five-Year Plan’s diversification goals, after RO6.936 billion of development expenditure in 2021-2025.

Insights

Will Oman's multi-billion rial gamble on green hydrogen and downstream projects successfully replace its deep reliance on fossil fuel revenues?
With oil funding Oman's massive economic transformation, what happens to these ambitious mega-projects if global energy prices suddenly collapse?