Overview
Oman’s healthcare system is widely regarded as a development success story, but rising costs and changing disease burdens require a reassessment of the relationship between health spending and outcomes. Efficiency improvements are essential for long-term sustainability.
Health Spending in Oman
Oman spends approximately 4 percent of GDP on health, with over 80 percent funded by the government. The health system includes a network of primary health centres, regional hospitals, and tertiary facilities. Per capita health spending is approximately USD 700 annually. Government health spending has grown due to population increases, infrastructure expansion, and rising utilisation. Private health spending is growing but remains a minority share.
Health Outcomes in Oman
Health outcomes are impressive: life expectancy exceeds 77 years, infant mortality is below 10 per 1,000 live births, and maternal mortality is among the lowest in the developing world. The WHO has historically ranked Oman’s health system highly for efficiency. However, rising rates of diabetes (affecting over 14 percent of adults), obesity, cardiovascular disease, and mental health conditions are creating new challenges that require different care models.
Key Differences
Oman achieves strong health outcomes relative to its spending level, suggesting good system efficiency. However, the epidemiological transition from communicable to non-communicable diseases requires investment in prevention, chronic disease management, and specialist care, all of which are more expensive per patient. The current hospital-centric model may be less efficient for managing chronic conditions than primary care and community health approaches.
Verdict / Bottom Line
Oman should invest in preventive health programmes targeting diabetes, obesity, and mental health to reduce future treatment costs. Expanding primary care capacity, introducing mandatory health insurance, and leveraging digital health technologies can improve efficiency. Maintaining the current strong outcomes while managing cost growth requires strategic shifts toward prevention and community-based care models.