What Is Oman’s Economy Based On?
Short Answer
Oman’s economy is primarily based on oil and natural gas, which together account for approximately sixty percent of government revenues and thirty percent of GDP. However, the country is actively diversifying into tourism, logistics, mining, manufacturing, fisheries, and renewable energy under Vision 2040.
Detailed Answer
The hydrocarbon sector has been the backbone of Oman’s economy since oil exports began in 1967. Crude oil production typically ranges between nine hundred thousand and one million barrels per day, while natural gas production has grown substantially following the development of liquefied natural gas facilities.
Recognising the vulnerability of oil dependence, successive five-year plans have sought to develop non-oil sectors. Tourism has emerged as a priority, with the government investing in infrastructure including the new Muscat International Airport and heritage tourism sites. The logistics sector benefits from Oman’s strategic position and major port facilities at Sohar, Salalah, and Duqm.
Mining and quarrying represent another growth area, with Oman possessing significant deposits of copper, chromite, gypsum, and marble. The fisheries sector contributes meaningfully to both food security and exports, with Oman’s extensive coastline supporting a productive fishing industry.
Manufacturing is expanding, particularly in petrochemicals, metals processing, and food production. The government has also identified financial services and information technology as knowledge-economy sectors for future development. Agriculture remains limited due to water scarcity but receives support through modernisation programmes.