Oman’s 2026 State Budget Wins Praise for Fiscal Balance and Vision 2040 Alignment
Muscat, The Gulf Observer: Oman’s 2026 State Budget, announced on Thursday, has drawn widespread praise from economists, analysts and members of the public, who say it reflects fiscal discipline, sustained economic growth and a strategic shift toward opportunity-driven development in line with Oman Vision 2040.
Total estimated revenues in the General State Budget for 2026 are projected at approximately OMR 11.447 billion, based on an assumed average oil price of USD 60 per barrel. This represents a 2.4 percent increase compared with the approved revenues for 2025.
Financial expert Omar Al Nabhani highlighted the scale of investment directed toward economic transformation, noting the allocation of OMR 1.3 billion for transformation projects across multiple sectors in a single year. He said the move represents a bold step that creates tangible opportunities for small and medium enterprises.
Rashid Al Nuaimi, a public-sector employee, said the budget reflects Oman’s continued commitment to a balanced and disciplined fiscal approach, with a clear focus on sustainability and risk reduction that strengthens confidence in the resilience of the national economy. He added that the Ministry of Finance’s financial statement signals a strategic shift from managing challenges to managing opportunities.
“The budget is no longer merely a fiscal control tool; it has become a driver of growth and productivity,” Al Nuaimi said, noting that disciplined public spending demonstrates fiscal maturity while ensuring national priorities are met without compromising social commitments or essential services.
He further stressed that diversifying non-oil revenue sources has become an irreversible strategic choice under Oman Vision 2040, reducing dependence on volatile energy markets. According to Al Nuaimi, the financial statement also sends a reassuring signal to investors that Oman’s economic environment is increasingly stable and predictable, a key factor in attracting long-term investment. He praised the emphasis on transparency, saying the clarity of fiscal indicators helps both the public and private sectors better understand the country’s economic direction.
Speaking on Oman TV, Abdullah bin Salem Al Harthi, Undersecretary of the Ministry of Finance, said the government has worked in recent years along three parallel tracks to ensure a tangible impact on society. These include enhancing social spending and essential services, stimulating economic activity and supporting institutions, and strengthening the state’s financial position.
He said the 2026 budget seeks to achieve social, financial and economic stability while maintaining flexibility between development priorities, economic diversification and fiscal sustainability.
On the social front, the budget prioritises healthcare and education, comprehensive social protection, expanded insurance coverage and continued government support. It also focuses on training and employment programmes for job seekers in both the public and private sectors, increasing housing loan allocations and reducing waiting periods for beneficiaries.
Improving the business environment, enhancing local content and advancing government projects through digital solutions are also key objectives of the budget. Overall, approximately OMR 5.2 billion — representing 43 percent of total government spending — has been allocated to social and essential sectors, including education, social protection, housing and health, with education receiving the largest share at OMR 2.1 billion.
