Oman's Public Revenues Surge 13% Driven by Oil in Q2 2026

Oman's state public revenues surged by 13 percent to approximately OMR6.602 billion by the end of the second quarter of 2026, primarily driven by higher oil revenues. This increase in Muscat's finances comes as total public expenditure also rose to approximately OMR6.619 billion during the same period. Public expenditure marked a 9 percent increase, or OMR 521 million, compared to the OMR6.098 billion recorded in Q2 2025. This rise in both revenues and expenditures notes the dynamic fiscal landscape of the Sultanate.

Oil and Gas Revenue Drivers

Net oil revenues in Oman rose by 10 percent to approximately OMR3.332 billion by the end of the second quarter of 2026. This figure represents an increase from the OMR3.018 billion recorded during the same period in 2025. Oman's realised average oil price for the period stood at USD 74 per barrel, supporting the revenue growth. Average daily oil production reached 1.074 million barrels per day. The growth in public revenues is primarily attributable to these higher oil revenues. Concurrently, net gas revenues saw a substantial increase of 32 percent, reaching OMR1.164 billion by the end of Q2 2026. This is an increase from OMR884 million in the corresponding period of 2025, further contributing to the overall public revenue surge. The combined strength of oil and gas sectors played a key role in bolstering the state's financial position.

Expenditure Breakdown and Trends

Current revenues collected by the end of the second quarter of 2026 grew by 6 percent to OMR2.045 billion, an increase from OMR1.928 billion recorded during the same period in 2025. Concurrently, current expenditures rose by approximately OMR251 million to OMR4.369 billion by the end of Q2 2026, up from OMR4.118 billion at the end of Q2 2025. This indicates an ongoing commitment to funding operational aspects of government.

Development expenditures for ministries and civil units reached OMR798 million by the end of Q2 2026. Of this, OMR146 million was allocated to economic transformation projects, showing strategic investments in the nation's future. The disbursement rate for development expenditure stood at approximately 61 percent of the total development expenditure budget for 2026, which amounts to OMR1.3 billion. This reflects significant progress in implementing planned development initiatives. Total contributions and other expenditures recorded OMR1.132 billion by the end of Q2 2026. This figure reflected a decrease of approximately OMR29 million, or 2 percent, compared to OMR1.161 billion during the same period in 2025, indicating some efficiency gains or shifting priorities in this category. Subsidies allocated to the social protection system amounted to approximately OMR323 million, while subsidies for the electricity sector reached OMR288 million by the end of Q2 2026, demonstrating continued government support for essential services and citizen welfare.

Fiscal Position and Debt

State public revenues in Oman totaled approximately OMR5.839 billion during the corresponding period of 2025. By the end of Q2 2026, subsidies allocated to petroleum products reached approximately OMR162 million, reflecting measures to mitigate fuel costs. Transfers to the debt service provision amounted to OMR150 million within the same timeframe, noting the government's commitment to managing its financial obligations. Suspense expenditures also increased, reaching approximately OMR320 million by the end of Q2 2026, up from approximately OMR130 million during the corresponding period in 2025, indicating a notable rise in these provisional outlays. Oman's total public debt stood at OMR14.16 billion by the end of Q2 2026. This figure represents a marginal increase of approximately 0.3 percent compared to the OMR14.12 billion recorded at the same period in 2025, suggesting a relatively stable debt profile despite increased expenditures.