Oman maintains fiscal discipline in Q1 amidst lower oil revenue
During the first quarter of 2025, total public revenue reached RO 2.635 billion. This represented a year-on-year decline of seven per cent compared to the RO 2.826 billion recorded in the same period of 2024. The decline was driven primarily by a reduction in oil and gas revenue. Net oil revenue stood at RO 1.468 billion, falling by 13 per cent from RO 1.688 billion a year earlier. Net gas revenue also declined marginally by two per cent to RO 436 million, down from RO 444 million.
In contrast, current revenue increased by five per cent to RO 725 million, compared to RO 691 million in the same period last year.
Despite revenue pressures, public spending rose to RO 2.771 billion, a four per cent increase compared to RO 2.664 billion in the first quarter of 2024. The increase is attributed to a strong rise in development expenditure, which grew by 27 per cent to RO 254 million. Meanwhile, current expenditure slightly decreased by one per cent to RO 1.967 billion.
The government also allocated RO 490 million towards contributions and other expenses, including RO 144 million for the social protection system and RO 27 million in fuel subsidies. Additionally, RO 100 million was allocated to the budget line designated for future debt obligations.
Spending on social sectors and basic services totalled RO 1.668 billion by the end of March 2025. This amount represented 40 per cent of total public spending. Of this allocation, 52 per cent was directed towards social welfare and security, twenty-five per cent towards education, sixteen per cent towards health services and seven per cent towards housing.
The Ministry of Finance also maintained strong support for the private sector by paying more than RO 304 million to suppliers and contractors through the government's financial system. These payments were made within an average of five working days after the submission of complete documentation, reflecting the government's reliability and efficiency in fulfilling its financial obligations.
Public debt declined to RO 14.3 billion at the end of the first quarter of 2025, compared to RO 15.1 billion in the same period of 2024. The Ministry attributed this reduction to the proactive repayment of outstanding financial obligations.
To address financing needs for 2025, the government has announced a borrowing plan of RO 2.454 billion. This includes RO 1.836 billion to cover maturing debt instalments and RO 620 million to finance the anticipated fiscal deficit. The government aims to meet these requirements through a mix of Government Development Bonds and Local Sovereign Sukuk, with a total issuance value of RO 750 million planned across the year. This strategy is designed to ensure funding at sustainable cost and risk levels.
The financing plan also supports three key objectives: enhancing the domestic debt market, diversifying investor participation and mitigating risks associated with public debt.
According to the International Monetary Fund's April 2025 World Economic Outlook, global economic growth is projected to slow to 2.8 per cent in 2025. The global inflation rate is expected to ease to 4.2 per cent. Oil prices are forecast to average $66 per barrel in 2025, down from $73 per barrel during Oman's first quarter.
Despite external headwinds, the Omani economy continued to expand. The gross domestic product at constant prices grew by 1.7 per cent in 2024, reaching RO 38.305 billion, up from RO 37.674 billion in 2023, according to the National Centre for Statistics and Information.
Oman's first quarter fiscal performance reflects a government focused on stability, resilience and forward-looking reforms. With increased investments in development and social sectors, accelerated debt reduction and timely payments to the private sector, the government remains aligned with the goals of Oman Vision 2040. Despite global uncertainties, the Sultanate of Oman is maintaining a steady course towards sustainable growth and economic diversification.
2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
28 minutes ago
- Zawya
The Professional Diploma Program in Endowment Leadership celebrates the graduation of its first cohort
Muscat: In a groundbreaking initiative to advance the future strategic vision for leading and developing the Waqf sector and establishing a comprehensive, sustainable Islamic financial model, the Professional Diploma in Waqf Leadership proudly celebrated the graduation of its inaugural cohort. This milestone marks the fruition of a strategic alliance between Bank Nizwa, Tawafuq Financial Consultancy, and the College of Sharia Sciences, dedicated to cultivating national human capital specialized in Waqf leadership. The graduation ceremony was held under the esteemed patronage of His Excellency Dr. Mohammed bin Said bin Khalfan Al Maamari, Minister of Endowments and Religious Affairs, and attended by senior officials, distinguished leaders from the Waqf and banking sectors, and representatives from the partnering institutions. Since its launch earlier this year, the Professional Diploma has underscored the critical importance of harmonizing rigorous academic research with specialized practical application in the endowment sector. Its mission is to equip a new generation of leaders with the expertise and vision required to spearhead this pivotal sector. Developed through a robust strategic partnership—Bank Nizwa serving as the banking partner, Tawafuq as the executive partner specializing in Islamic financial consultancy, and the College of Sharia Sciences as the knowledge partner—the program delivers a comprehensive, tailored educational experience meticulously designed to address the unique characteristics and operational demands of the Waqf sector. Under the expert guidance of Dr. Mohammed Fakhri Suwaileh, Islamic Banking and Endowments Advisor and Sr. Manger of Waqf Investment at Bank Nizwa, participants engaged in an intensive curriculum covering Islamic jurisprudence, legal frameworks, corporate governance, risk management, regulatory compliance, performance metrics, contemporary Waqf investment strategies, internal and Sharia audit, and Waqf accounting. By embracing an innovative pedagogical approach that transcends conventional methodologies, the diploma program has solidified a management paradigm focused on maximizing the developmental and investment impact of endowments. Graduates have been empowered with the essential tools, insights, and competencies to elevate operational efficiency, uphold transparency standards, and ensure the long-term sustainability of the sector. Reflecting on the occasion, Mr. Khaled Al Kayed, Chief Executive Officer of Bank Nizwa, stated, 'This milestone underscores our firm commitment to partnering with like-minded institutions that share our vision of advancing Islamic finance through the development of highly skilled and specialized professionals. Initiatives of this nature are essential in cultivating individuals with a profound understanding of Waqf systems, alongside the analytical and managerial competencies needed to thrive in today's evolving institutional landscape. This program embodies our belief in structured, purposeful learning as a catalyst for sustainable transformation and meaningful impact within the sector. We are proud to have partnered with Tawafuq and the College of Sharia Sciences in empowering the first cohort of graduates from the Waqf Leadership Diploma Program, and we look forward to its continued growth and success in shaping influential leaders who will drive progress across the Waqf sector.' The graduating batch comprised professionals from a broad spectrum of institutions, including representatives from the Ministry of Endowments and Religious Affairs, endowment organizations, Islamic banks, and academic and legal fields. This diversity of professional backgrounds significantly enriched the learning experience and fostered a culture of engagement and knowledge-sharing — reflecting a shared commitment to advancing inclusive development within the Waqf sector and the broader financial ecosystem. The program provided exceptional opportunities for knowledge exchange and institutional capacity-building, aimed at enhancing performance efficiency and strengthening the infrastructure that supports the Waqf sector in the Sultanate of Oman. Initiatives such as the Professional Diploma Program for Waqf Leadership reflect the shared commitment of Bank Nizwa, Tawafuq, and the College of Sharia Sciences to advancing Waqf leadership and enhancing national talent. These efforts aim to elevate the role of Waqf in sustainable development and community service by preparing a new generation of leaders capable of driving the sector toward a prosperous future.
Zawya
28 minutes ago
- Zawya
Vatel Bahrain launches first MBA in International Hotel Management in the Kingdom
Bahrain: In response to growing demand for specialised leaders in the region's rapidly expanding tourism sector, Vatel Bahrain has launched the Kingdom's first MBA in International Hotel Management. The two-year postgraduate programme, approved by the Higher Education Council (HEC), is placed at level 7 of the European Qualifications Framework (EQF) and aligned with the National Qualifications Framework (NQF) at level 9, offering students an internationally recognised pathway to senior roles in the hospitality and tourism sector locally, regionally and internationally. In line with the college's strategic goals, the MBA programme supports the objectives of Bahrain Vision 2030 and the Kingdom's Tourism Strategy 2022–2026 by empowering national talent in high-potential sectors and equipping them with professional knowledge, relevant skills, and leadership capabilities that enhance their contribution to sustainable economic development. Delivered entirely in English over two academic years, the programme is designed to engage students in a unique curriculum covering subjects such as Economy of Tourism and Hospitality, Marketing Strategy, Financial Analysis, Human Resources, Hospitality and Tourism Strategy, and language studies in English and French, honing their skills and enhancing industry readiness. Admission to the programme requires a bachelor's qualification in Hospitality or Hotel Management, or a bachelor's degree in any other discipline accompanied by a minimum of two years of relevant professional experience. Applicants must also successfully complete a personal interview as part of the selection process. Sheikh Khaled bin Khalifa Al Khalifa, General Director of Vatel Bahrain, affirmed that the introduction of this MBA programme—considered the first of its kind in the Kingdom—addresses the increasing need for skilled leadership in the hospitality and tourism industries across Bahrain and the wider region, while also executes Vatel Bahrain's strategic plan aimed at developing national and regional competencies to the highest standards by equipping them with professional skills, expertise and knowledge in the tourism field. Sheikh Khaled further added that the MBA programme has been meticulously developed to equip graduates with the professional knowledge, strategic acumen, and global perspective essential for assuming senior leadership roles within the tourism and hospitality sector. By seamlessly integrating academic rigour with practical industry experience and remaining attuned to evolving global trends, the programme seeks to address existing professional gaps and contribute meaningfully to enhancing the quality and competitiveness of hospitality services in Bahrain and the wider region. For more information, please contact: Zainab Ashoor | Marketing & Communications Specialist Al Jasra, Kingdom of Bahrain About Vatel Hospitality School: Vatel Hospitality School was established in France in 1981, specializing in business management within the hospitality and tourism sectors it has grown into a global network of over 55 campuses in 33 countries. The Bahrain campus, founded in 2018, is part of this global network. Vatel holds a distinguished international reputation, with over 45,000 graduates worldwide who have gone on to become leaders in the industry. Vatel has consistently been ranked first in France and 12th globally in hospitality management, according to the latest QS rankings, maintaining this position for four consecutive years.
Zawya
28 minutes ago
- Zawya
QIB expands its mobile app features to enhance customer experience
Doha, Qatar – Qatar Islamic Bank (QIB), Qatar's leading digital bank, has introduced a series of new features to its award-winning Mobile App and the QIB Lite App, further strengthening its digital offering and enhancing access to essential financial services for all customers. QIB has enhanced its Instant Credit Card feature by extending it to all eligible customers without requiring a salary transfer to QIB. The feature enables non-salaried customers to instantly apply for and receive a Credit Card via the QIB Mobile App, backed by a lien—a temporary hold—on a deposit or account balance. This update simplifies access to credit and offers customers greater flexibility and control over their finances. Additionally, QIB has expanded its Instant Cash Pickup service to include Pakistan through direct API integration with Habib Bank Limited (HBL) via both QIB Mobile App and QIB Lite App. The Cash Pickup service enables QIB customers to send money securely to beneficiaries in Pakistan, who can collect the cash instantly from any participating HBL branch. The new corridor builds on the existing Cash Pickup network covering Jordan, Egypt, and the Philippines, offering valuable remittance options to Qatar's expatriate communities. Among the newly introduced services, the Salary Advance feature is now available for eligible low-income earners (WPS) through the QIB Mobile App as well. Customers can instantly access up to 80% of their net salary in just a few steps. The service offers a one-time settlement in the following month and a fixed monthly profit rate of only 1%, making it a simple, fast, and affordable solution for customers needing short-term liquidity. The service is now available on both QIB Mobile App and QIB Lite App. Commenting on the launch, Mr. D. Anand, QIB's General Manager – Personal Banking Group, said: 'These new features reflect our ongoing efforts to build a more inclusive and responsive digital banking ecosystem. By listening to our customers and understanding their needs, we are continuously delivering solutions that improve financial access, convenience, and control. Whether it is helping customers bridge short-term expenses, access credit instantly, or support families abroad, QIB remains committed to customer-centric innovation. The continuous releases of new features is a testament to our promise to always expect more from QIB.' With over 320 features and an enhanced user interface, the QIB Mobile App has become the preferred banking channel for QIB customers. The app offers customers full control over their accounts, cards, financing, and transactions, and enables them to fulfil all their banking requirements remotely. Customers can also open new accounts, apply for financing or credit cards, and book deposits instantly and securely. Available on the App Store, Google Play, and Huawei AppGallery, customers can download the QIB Mobile App and self-register using their QID and PIN. For more information, please visit
