On Monday 1 January, Oman revealed its 2018 budget. Total projected spending will amount to 12.5 billion Omani Rials, an increase of 6.8% against the previous year. Revenues are estimated at 9.5 billion Omani Rials, leaving a budget deficit of 3 billion Omani Rials, a level of 10% of GDP. GDP is budgeted to grow at a rate of 3%.
This year’s budget is based on an oil price of US$50/bbl, which is lower than the US$55/bbl assumed in the ninth five year plan and suggests prudent financial management.
In our latest outlook, we analyze the proposed measures in the budget as Oman seeks to grow its economy in a challenging economic environment.
For more information, or to discuss what the budget means for your business, please feel free to contact me or any of our team members.
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