Oman’s economic growth is set to rebound in 2024, supported by higher hydrocarbon production and stronger non-hydrocarbon growth, after softening this year due to oil production cuts, the International Monetary Fund has said.
It is projected to slow down this year to 1.3 per cent, the IMF added.
However, non-hydrocarbon growth accelerated from 1.2 per cent in 2022 to 2.7 per cent in the January-June period of this year. It was supported by Oman’s recovering agricultural and construction activities and robust services sector.
“The economic outlook remains favourable … fiscal and current account balances are projected to remain in surplus over the medium term albeit trending down along with oil prices,” said Cesar Serra, who led the staff visit to Muscat.
However, the outlook is subject to high uncertainty, due to “oil price volatility, global economic and financial developments, and potential indirect spillovers from the ongoing conflict in Gaza”, Mr Serra added.
Brent, the global benchmark for two thirds of the world's oil, soared to a notch under $140 a barrel in March last year, the highest in 14 years, after Russia’s military offensive in Ukraine.
However, sluggish economic growth in China and the strong possibility of a recession in several economies weighed on the market and dragged prices lower.
Brent topped $95 a barrel in September as voluntary supply cuts by Opec+ members Saudi Arabia and Russia tightened the crude market.
But rising exports from sanctioned countries as well as concerns about the global economy have dragged crude prices lower in recent weeks.
Brent was trading 4.1 per cent down at $77.81 a barrel at 8.56pm UAE time on Thursday. While the West Texas Intermediate, the gauge that tracks US crude, was down 4.4 per cent at $73.26 a barrel.
As a result of reduced oil activities, Oman’s economy contracted by 9.5 per cent in the second quarter of 2023, Oman news agency reported in September, citing preliminary data issued by the National Centre for Statistics and Information.
The total gross domestic product for the three months to the end of June at current prices declined to about 10.1 billion Omani rials ($26.24 billion) compared to 11.1 billion rials during the same period last year.
The largest non-Opec producer in the Middle East, Oman expects a budget deficit of 1.3 billion rials this year, or 3 per cent of its economy, after achieving a surplus of 1.14 billion rials for 2022, the Ministry of Finance said in January.
The Gulf nation launched a three-year fiscal stability programme in October last year to add momentum to its economic recovery from the pandemic-driven slowdown and support the development of the country’s financial sector.
The IMF said Oman’s banking sector is resilient and accelerating financial sector development is key to expanding access to finance and supporting diversification efforts.
“Profitability has recovered to pre-pandemic levels, capital and liquidity ratios are well above regulatory requirements, and asset quality remains strong,” Mr Serra said.
The structural reform agenda under Oman’s Vision 2040 is also progressing, with many reforms under the implementation stage. It will further foster Oman's inclusive growth, enhance job creation and bolster resilience, the IMF said.
“The ongoing implementation of the new social protection law will strengthen the resilience of vulnerable groups and reinforce the sustainability of the unified pension fund.
“Enhancing non-hydrocarbon revenues – including through the planned tax administration reform and personal income tax on high-income earners – and further rationalising current expenditures, particularly from phasing out untargeted energy subsidies, remain a priority,” Mr Serra said.
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
The view from The National
Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes
BRAZIL SQUAD
Alisson (Liverpool), Daniel Fuzato (Roma), Ederson (Man City); Alex Sandro (Juventus), Danilo (Juventus), Eder Militao (Real Madrid), Emerson (Real Betis), Felipe (Atletico Madrid), Marquinhos (PSG), Renan Lodi (Atletico Madrid), Thiago Silva (PSG); Arthur (Barcelona), Casemiro (Real Madrid), Douglas Luiz (Aston Villa), Fabinho (Liverpool), Lucas Paqueta (AC Milan), Philippe Coutinho (Bayern Munich); David Neres (Ajax), Gabriel Jesus (Man City), Richarlison (Everton), Roberto Firmino (Liverpool), Rodrygo (Real Madrid), Willian (Chelsea).
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Global state-owned investor ranking by size
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1.
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United States
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2.
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China
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3.
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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7.
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Singapore
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8.
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Australia
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9.
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Saudi Arabia
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10.
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South Korea
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
Profile of Udrive
Date started: March 2016
Founder: Hasib Khan
Based: Dubai
Employees: 40
Amount raised (to date): $3.25m – $750,000 seed funding in 2017 and a Seed round of $2.5m last year. Raised $1.3m from Eureeca investors in January 2021 as part of a Series A round with a $5m target.
UAE currency: the story behind the money in your pockets
More from Rashmee Roshan Lall
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
