Oman’s non-oil exports rise 9.1% but trade surplus plummets in H1 2025

Muscat: Oman recorded strong non-oil export growth in the first half of 2025, even as its overall trade surplus dropped sharply. Fresh figures from the National Centre for Statistics and Information highlight both progress and challenges in the country’s trade performance.

Key numbers at a glance

Non-oil merchandise exports grew by 9.1 percent year-on-year, reaching 3.260 billion Omani rials, up from 2.989 billion rials in the first half of 2024.

In contrast, oil and gas exports fell by 16.1 percent to about 7.424 billion rials, compared to 8.846 billion rials during the same period last year.

Total merchandise exports fell by 9.5 percent, landing at 11.499 billion rials, while re-exports dropped by 5.9 percent to 815 million rials.

Imports, however, rose by 5.1 percent, climbing to 8.411 billion rials compared to 8.004 billion rials a year earlier.

Oman’s trade surplus for the first half of 2025 declined by 34.3 percent to 3.088 billion rials, compared with 4.697 billion rials in the first half of 2024.

What changed and why it matters

The Omani economy remains highly dependent on oil and gas revenues. The decline in energy exports dragged down the overall trade results despite solid growth in non-oil products such as manufacturing, chemicals, and minerals.

The rise in non-oil exports was largely supported by stronger trade with regional partners. The United Arab Emirates was the top destination for Oman’s non-oil goods, with shipments rising nearly 30 percent year-on-year to 593 million rials. Saudi Arabia followed with around 538 million rials, while India ranked third with about 335 million rials.

Yet, the increase in imports and the sharp fall in oil-related earnings meant that the overall trade balance weakened significantly. A trade surplus reduced by more than one-third sends a warning sign about short-term economic pressures.

Policy context and future implications

Oman’s Vision 2040 strategy is focused on reducing reliance on hydrocarbons and expanding the private sector. Non-oil export growth is a clear indication that this long-term plan is beginning to take shape.

However, oil and gas still dominate state revenues and overall trade. If oil prices stay weak or global demand slows, Oman could face more pressure on export growth and trade balance. Rising imports also reflect strong local demand, which benefits consumption but could strain the economy if not matched by further export expansion.