Oman is a rural, agricultural country, and fishing and overseas trading are important to the coastal populations. Oil in commercial quantities was discovered in Oman in 1964 and was first exported in 1967. Then the production and export of petroleum rapidly came to dominate the country's economy. Oil revenues represent roughly two-fifths of gross domestic product (GDP) and about three-fourths of the government's income.
The following tables and chart will tell the change details in last 5-10 years:
Oman Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Oman GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture is an important part in the Oman's economy. It employs almost 4.49% of the total workforce and contributed almost 2.35% in GDP.
The main crops grown in Oman are tomatoes, eggplant, dates, bananas, limes, and carrots. The principal agricultural area is found along the Batinah coast, in the northeast between Muscat and Diba al-Hisn, which accounts for about half the total crop area of approximately 101,000 acres.
Major products in this Sector:
Fishing: Fisheries represent one of five important sectors that underpin the economic growth strategy of the Sultanate, which aims to build more modern ports specialized in maritime fishing. Today, there are about 25 fishery ports in the country to serve this sector, whether for traditional or modern vessels. Oman's fish exports reach 57 countries around the world, according to data of the Ministry of Agriculture and Fisheries for 2019. The Omani government believes that the annual income from the fisheries sector will increase during the next decade in line with the country's economic diversification efforts.
Agriculture Subsidy in Oman:
Government subsidies to agriculture play an important role in Oman. The subsidy programme has been launched to promote economic diversification, food self-sufficiency and higher incomes. The programme provides subsidies in four main categories:
- Recurrent inputs including most of the seasonal production inputs like seeds, fertilizers, pesticides etc.
- Durable inputs such as tractors, sprayers and pumps. The subsidy is reflected in the preferentially low interest loan to purchase them from Oman Bank for Agriculture and Fisheries.
- Government services including extension, veterinary services, chemical spraying and tractor hire services.
- Price support to agricultural produce.
Industry is an important part in the Oman's economy. It accounts for 53.72% of GDP and employed almost 32.84% of the workforce.
Major Industries in this Sector:
Oil and Gas: Oil has been the driving force of the Omani economy since Oman began commercial production in 1967. The oil industry supports Oman's modern and expansive infrastructure, including electric utilities, roads, public education, and medical services. Oman is capable of producing upwards of one million barrels per day of crude oil and condensates. Oman's oil reserves primarily consist of heavy crude, and China is the predominant export market. Oman's government derives roughly 70 percent of its annual budget from oil and gas revenues through taxation and joint ownership of some of the most productive fields. In 2020. In 2020, Oman export almost US$27.7 billion worth of oil and gas which was almost 77% of the total value of Oman's export.
Mining: Oman's mining industry has attracted increasing interest from both foreign and local operators as Oman was the first GCC producer and exporter of ferrochrome. Oman is reportedly the world's largest gypsum exporter. Industry analysts estimate Oman has more than one billion tons of gypsum resources. Approximately 30 million metric tons of chromite ore are located in Oman, according to the Oman Chromite Company, which reportedly produced almost 20,000 metric tons in 2019. In 2020, Oman exported almost US$5 billion worth of mineral products which was almost 10% of the total export in Oman .
Service sector is an important part in the Oman's economy. It contributes almost 43.93% in the GDP and employed almost 62.67% of the total Oman's workforce.
Major Industries in this Sector:
Finance: There are 17 licensed foreign and local commercial banks and two specialized banks in Oman. The Central Bank of Oman licenses and regulates the local banking sector, monitors interest rates, and issues development bonds and notes. In 2018, banks in Oman reported combined assets of $71 billion, the smallest in the GCC. Oman's banking and finance sector has maintained a steady growth providing adequate credit and other services efficiently to all segments of the economy. The top banks in Oman are Bank Musca, Bank Dhofar, National Bank of Oman, Alizz Islamic Bank and Oman Arab Bank.
Tourism: In 2019, Oman attracted about 3.5 million visitors from around the world, a massive increase from 3.1 million in 2017 as per the 2019 Tourism Statistic Bulletin from the National Centre for Statistics and Information (NCSI), Oman. The contribution of travel, hospitality and tourism to the Omani economy totaled around RO 1.293 billion in 2019, up from RO 1.233 billion a year earlier, entailing an increase of 4.9 per cent. Oman has various tourist attractions, particularly within the realm of cultural tourism.Muscat was named the best city to visit in the world by American travel guide publisher Lonely Planet in 2012 and was chosen as the Capital of Arab Tourism of 2012.
Top Companies in Oman:
|Company Name||Sector||Market Cap (USD Billion)|
|National Bank of Oman||Banking||1.094|
|HSBC Bank Oman||Banking||0.884|