KPI Status 🟡
| Value | |
|---|---|
| Baseline (2017-2018) | ~3.8% (2017) |
| Current Estimate | ~4.5% (2023 est) |
| 2030 Target | — |
| 2040 Target | ~5-6% |
| Status | Making progress |
Indicator Analysis
Health expenditure as a percentage of GDP measures the total resources — public and private — devoted to healthcare delivery, infrastructure, and health system operations relative to the size of the economy.
Baseline context: Oman’s health expenditure of approximately 3.8 percent of GDP in 2017 was below the global average (~10%) and below the OECD average (~8.8%), though comparable to GCC peers where young populations and expatriate demographics reduce per-capita healthcare demand relative to ageing Western societies.
Recent developments:
- COVID-19 pandemic response required significant emergency health spending, temporarily elevating the ratio
- New hospital construction programme including Muscat’s Sultan Qaboos Medical City expansion
- Health insurance mandate (Dhamani) implementation driving private-sector health expenditure growth
- Public-private partnership models introduced for hospital management and clinical services
- Ministry of Health digital transformation programme reducing administrative costs while improving service delivery
Challenge: Increasing health expenditure as a share of GDP requires sustained budget allocation against competing fiscal priorities. As Oman’s population ages (albeit slowly compared to OECD peers), non-communicable disease prevalence rises, and citizen expectations for healthcare quality increase, the upward pressure on health spending will intensify.
GCC Context
Oman’s health expenditure sits in the mid-range for the GCC. The UAE allocates approximately 4.5-5 percent of GDP to health, while Saudi Arabia’s Vision 2030 health transformation programme has pushed spending above 6 percent. Kuwait and Qatar maintain higher per-capita health spending given their smaller populations and larger fiscal envelopes. Oman’s challenge is to improve health outcomes per dirham spent, rather than simply increasing aggregate spending, given fiscal sustainability constraints.
Data Sources
This indicator is drawn from: official Oman Vision 2040 Progress Reports (IFU/Supreme Council for Planning), NCSI national statistics, World Health Organization Global Health Expenditure Database, and relevant international organisations (UNDP, World Bank, IMF as applicable).
Note: This page contains Layer 2 premium analysis. Underlying indicator definitions and headline values are available in the free Layer 1 content.