Oman

The 2025 Article IV Consultation for highlights that Oman’s economy has demonstrated strong resilience to shocks, with economic activity expanding amidst low inflation and fiscal and external positions remaining strong. Despite heightened uncertainty and declining oil prices, the outlook remains favorable. Growth and fiscal and external balances are expected to remain robust over the medium term, while risks to the near-term outlook are tilted to the downside. Reforms are advancing to achieve the envisioned economic transformation under Oman Vision 2040. Policies are being implemented to develop the financial sector, tackle labor market bottlenecks, enhance the business environment, improve state-owned enterprises transparency and performance, pursue renewable energy production, and scale up the digital initiatives. Strengthening the macroprudential framework, enhancing banking regulation and supervision, improving the financial safety net and crisis management, and deepening financial markets will safeguard financial stability and foster financial sector development. Sustaining the reform momentum will be key to achieving the economic transformation envisaged under Vision 2040.