Oman’s economy growth has exceeded expectations, recording a 10% incearse in the second quarter of this year, on an annual basis.
The growth of the Omani economy reached 15.3 billion riyals ($39.8 billion), supported by the rise in oil and non-oil activities.
At this rate, Oman’s economy exceeded International Monetary Fund‘s (IMF) expectations, while monitoring a 2.5% rate of economic growth in the Omani authority during the current year.
The Sultanate’s economy contracted in the first quarter of the year by 2.5%, affected by the negative performance of the oil sector, but oil activities in the country increased by 8.7%, driven by an 11% increase in crude oil activities, while gas activities fell 2%, according to the Oman News Agency.
The reason for the growth is due to an economic stimulus plan approved by Oman, which is based on reducing burdens on companies and investors.
In order to provide them with the necessary liquidity for expansion, it included incentives related to reducing taxes and fees on companies that will start their activities during 2021 in the sectors of economic diversification, and reducing the income tax rate on small and medium enterprises for the years 2020 and 2021.
The contribution of oil activities represented 71 percent of the GDP. These activities, which represent the real growth of the economy, recorded a growth of 11.1 percent during the first half, compared to a growth of 8.7 percent for oil activities, whose contribution declined to 29 percent of the GDP.
Statistics indicate that the total contribution of oil activities to the GDP amounted to 4.4 billion Omani riyals, of which 3.7 billion came from crude oil.
This includes support activities for the extraction of oil and natural gas, and 705 million riyals of natural gas.
As for the non-oil activities, their contribution increased to 11.4 billion riyals. These activities witnessed an impetus of growth in most sectors, especially industrial activities, agriculture, fisheries, service activities and financial intermediation services estimated indirectly.
According to the statistics, the growth of industrial activities increased by 12.1 percent, with a contribution of 3.1 billion riyals to the GDP. Among these activities, the growth of mining and quarrying increased by 7.7 percent, manufacturing industries 34.2 percent, and other manufacturing industries 43.3 percent, including the refined petroleum products industry.