Invest GCC 2024 January Issue 2

Oman’s economy to remain soft

Oman’s economy should move above its 10-year pre-pandemic average in 2024 due to expected recovery in oil GDP amid the ramp-up of operations at the Duqm refinery and improving trade and investment ties with neighnouring Saudi Arabia. The GDP growth will expand at 2.6% next year and reach at 2.7% in 2025, according to FocusEconomics.

Oman maintains an exchange rate system with full convertibility and no restrictions on capital flows. The rial has been officially pegged to the US dollar at a rate of OMR 2.6 per USD since 1986. The current forex regime is likely to stay in place out to 2028.

2024 OUTLOOK

2.6% GDP growth

2.1% Average inflation

4.81% Repo rate

LONG-TERM TRENDS

(3-year average) Year

GDP Growth (In%)

Inflation (In%)

2020-22

1.3

1.1

2023-25

2.4

1.7

2026-28

2.2

1.7

Sectors to Watch

Oil

Tourism

Trade

LNG

30 Federation of GCC Chambers

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