Analysis of Oman’s 2019 budget
Analysis of Oman’s 2019 budget
On Tuesday 1 January, Oman revealed its 2019 budget. Total projected spending will amount to 12.9 billion Omani Rials, an increase of 3% against the previous year budget. Revenues are estimated at 10.1 billion Omani Rials, leaving a budget deficit of 2.8 billion Omani Rials, which will be 9% of the projected GDP. GDP is budgeted to grow at a rate of 3%.
This year’s budget is based on an oil price of US$58/bbl, which is higher than the price at the end of 2018 which was US$53/bbl and lower than the average realized price of oil which was US$68/bbl at the end of November 2018.
In our Budget Alert, we analyze the proposed measures in the budget as Oman seeks to grow its economy in a challenging economic environment.
Key highlights
- 74 percent of government revenues come from oil and gas
- Expenditure is budgeted to increase by three percent without curtailing development expenditure
- The deficit is predominantly financed out of borrowings
- The government is focused on achieving economic diversification and creation of employment opportunities
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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