22/10/2017 06:21 AST

Oman’s economy has achieved a robust 12.3 per cent growth rate to OMR13,001.4 million for the first half of 2017, mainly driven by a marked growth in crude oil prices in the international market and prudent fiscal policies of the government.

The average price of Oman Crude surged ahead by 35.4 per cent to $51 per barrel for the January to August period of 2017, against $37.6 a barrel for the same period of 2016, shows a monthly report released by National Centre for Statistics and Information (NCSI).

With an increase in crude oil prices, the economy started gaining strength since the beginning of this year, reversing a slackness witnessed during the previous two years.

The oil sector’s gross domestic product (GDP) grew by 34.9 per cent to OMR4,229.3 million in the first half, whereas the non-oil sector edged up by only 3.8 per cent to OMR9,134.7 million.

But the total production of crude oil in Oman fell by 3.9 per cent to 235.33 million barrels for the first eight months between January and August, against 244.79 million barrels of crude oil for the same period of last year.

Crude oil sector contribution alone soared by 42.3 per cent to OMR3,583.8 million for the first half between January and June, against OMR2,518.9 million for the same period of last year. The non-oil sector’s GDP grew by 3.8 per cent to OMR9,134.7 million during the January to June period of this year, from OMR8,798.3 million for the corresponding period of last year. Non-oil GDP was mainly driven by a surge in basic chemicals and mining activities, said the report.

Deficit narrows down

The budget deficit for the first eight months between January and August showed a marked fall of 36.5 per cent to OMR2,776.4 million, against OMR4,371.6 million, added the report. An increase in revenue and austerity measures helped the government contain the budget deficit, said a market analyst, who preferred anonymity.

The government revenue increased by 25.8 per cent to OMR5,366.3 million for the first eight months, from OMR4,267.4 million for the same period of last year. Net oil revenue alone rose by 39.3 per cent to OMR2,960.8 million for the January to August period of this year.

Also, public expenditure edged down 1.3 per cent to OMR7,342.7 million from OMR7,439 million during the period under review. Of this, current expenditure moved up by 1.2 per cent to OMR5,233 million, while investment expenditure declined by 3.9 per cent to OMR1,758.7 million during the first eight months of 2017.

Times of Oman

Ticker Price Volume
QNBK 127.00 43,799
SABIC 104.61 3,002,041
BURUJ 35.17 343,045
STC 75.83 355,162
ALMARAI 51.15 371,471
SCACO 5.75 0
PETRORABIGH 23.55 3,067,281
Saudi vision calls for urban development that will last


VISION 2030 adds sustainability to the agenda as it pushes to expand urban development; points include prolonged asset lifecycle, lower utility bills, and infrastructure to promote physical activity.

Saudi Gazette

Gulf banks catch eye of regional investors


Gulf banks could benefit from rising global interest rates, a Bloomberg conference in London heard.

Hasnain Malik, global head of equity research at emerging markets bank, Exotix Capital fl

Arab News

Saudi Arabia approves landmark bankruptcy law


Saudi Arabia has approved a new bankruptcy law, a move analysts predict will help attract foreign direct investment, boost credit growth and allow the country’s SME sector to thrive, as the process o

The National

UAE’s economic growth projected to pick up pace in 2018


Economic performance is likely to improve in 2018 with firming oil prices, an improvement in global trade and the expected easing pace of fiscal adjustment, according to the latest assessment of the

Gulf News

Saudi Arabia to invest $64b in entertainment in next decade


Saudi Arabia announced plans Thursday to spend billions on building new venues and flying in Western acts, in a total overhaul of its entertainment sector that would been unthinkable not long ago.

Gulf News