Oman’s Public Debt Falls to OMR 14.1 Billion; Amid Declining Oil Revenues and Rising Development Spending

August 17, 2025
Oman’s Ministry of Finance announced that the country’s public debt reached OMR 14.1 billion (≈36.6$bn) by the end of Q2 2025, compared to OMR 14.4 billion during the same period in 2024. Over the same period, the government also settled more than OMR 749 million (≈1.9$bn) in private sector dues through the financial system.

Decline in Public Revenues
Official data showed that public revenues decreased by 6%, reaching OMR 5.8 billion (≈15$bn), down from OMR 6.2 billion in 2024. This drop was mainly driven by a 10% decline in net oil revenues, which stood at OMR 3 billion (≈7.8$bn), as well as a 6% decrease in gas revenues to OMR 884 million (≈2.3$bn).

Increase in Current and Development Expenditure
Meanwhile, total public spending rose to OMR 6.09 billion (≈15.9$bn), a 5% increase compared to the same period of 2024. Current expenditures amounted to OMR 4.1 billion, while development spending by ministries and civil units reached OMR 688 million, representing 76% of the annual allocation, reflecting accelerated progress in development projects.

Focus on Social Sectors
The report highlighted that OMR 3.1 billion was allocated to social and essential sectors, distributed as 52% for education, 21% for social security and welfare, 19% for health, and 8% for housing.

Other Subsidies and Commitments
Government support during this period included OMR 339 million for the electricity sector, OMR 289 million for the social protection system, and OMR 44 million for petroleum products, in addition to OMR 200 million allocated for debt repayments.

These results indicate that despite the challenges posed by falling oil prices and production, Oman continues to move forward in reducing public debt and strengthening development and social spending.