Oman’s gross domestic product at current prices rose 4.7% year-on-year in Q1 2025, reaching USD 27.38 billion (OMR 10.53 billion), compared to USD 26.16 billion (OMR 10.06 billion) in the same period last year, according to preliminary figures from the National Centre for Statistics and Information.
The expansion was driven primarily by stronger non-oil activity, which grew 4.1% to USD 18.54 billion (OMR 7.13 billion), up from USD 17.81 billion (OMR 6.85 billion).
Among individual sectors:
Agriculture and fisheries posted the highest growth, expanding 11.1% to USD 849.2 million (OMR 326.6 million).
Industrial activities increased 2.8% to USD 5.12 billion (OMR 1.97 billion).
Services rose 4.2% to contribute USD 12.58 billion (OMR 4.84 billion) to GDP.
Oil activities also supported overall growth, with value-added climbing 6.8% to USD 9.65 billion (OMR 3.71 billion), compared to USD 9.03 billion (OMR 3.47 billion) a year earlier.
Within oil activities:
Crude oil declined 7.5% to USD 7.12 billion (OMR 2.74 billion).
Natural gas surged 89% to USD 2.52 billion (OMR 970.8 million).
This performance comes as Oman continues to diversify its economy and strengthen non-oil sectors.
In June, Credit Oman reported insured non-oil exports reached USD 159.1 million (OMR 61.2 million) in Q1, a 6% increase over the prior year, supported by higher shipments of construction materials, petrochemicals, mining products, and agricultural goods.
Overall, broader non-oil exports rose 8.6% to USD 4.19 billion (OMR 1.61 billion), representing 28.6% of total exports.
The government is also pursuing fiscal reforms to support sustainable growth. Under a new royal decree, Oman will become the first Gulf nation to introduce personal income tax, imposing a 5% levy on annual taxable income above USD 109,200 (OMR 42,000) starting in 2028. The measure is projected to affect about 1% of residents.
Meanwhile, Oman’s real estate market showed renewed strength. Official data revealed that residential property prices rose 7.3% year-on-year in Q1 2025, driven by a 6.5% increase in residential land values.
In May alone:
Apartment prices surged 17%.
Villas rose 6.4%.
Other residential units increased 2.2%.
Overall, the residential real estate index advanced 5.5% quarter-on-quarter, reflecting a broader regional recovery.
Source: Arab News
