# Oman GDP Expands 5.1% in Second Quarter Driven by Strong Oil Output

- URL: https://stocks.freetheai.org/news/oman-gdp-expands-5-1-in-second-quarter-driven-by-strong-oil-output-284824
- Published: 2026-10-13T08:35:51Z
- Category: macro; sentiment: neutral; impact: medium
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Oman's economy expanded 5.1% year-over-year in the second quarter of 2026, reaching roughly RO 9.9 billion in real gross domestic product. The growth brought first-half real GDP to approximately RO 19.5 billion, representing a 3.8% increase compared to the same period a year earlier.

A robust performance in the hydrocarbon industry served as the main engine for second-quarter expansion, with oil sector activity increasing 14.7% year-over-year. Crude oil production climbed 15.2% while natural gas output rose 11.7%. However, non-oil sectors grew by just 0.7% year-over-year and contracted 1.1% from the previous quarter, highlighting an ongoing reliance on energy markets despite national initiatives to diversify the economic foundation.

Fiscal metrics indicate continued stability, with full-year real GDP growth projected at 3.5% for 2026 and a general government budget surplus expected at 4.8% of GDP. Public debt is forecasted to decline to 30.2% of GDP. Going forward, the focus remains on advancing the 11th Five-Year Development Plan to strengthen non-oil sectors such as manufacturing, logistics, tourism, and renewable energy.

## Key points

- Oman's real GDP grew 5.1% year-over-year and 2.4% quarter-over-quarter in Q2 2026.
- Oil sector activity surged 14.7% year-over-year, supported by a 15.2% rise in crude oil output.
- Non-oil activities recorded modest 0.7% year-over-year growth and contracted 1.1% quarter-over-quarter.
- Full-year 2026 real GDP growth is projected at 3.5%, with a budget surplus of 4.8% of GDP.
- Public debt is expected to drop to 30.2% of GDP as Oman continues its long-term economic diversification.

## Questions and answers

### How much did Oman's GDP grow in Q2 2026?

Oman's real GDP grew by 5.1% year-on-year and 2.4% quarter-on-quarter in the second quarter of 2026, reaching approximately RO 9.9 billion.

### What drove Oman's economic growth in the second quarter of 2026?

The oil sector was the primary driver, rising 14.7% year-on-year as crude oil production increased by 15.2% and natural gas output grew 11.7%.

### What is the economic outlook for Oman in 2026?

Full-year real GDP growth is projected at 3.5%, alongside a government budget surplus of 4.8% of GDP and a decline in public debt to 30.2% of GDP.