Oil and gas continued to dominate Oman’s public finances in 2025, accounting for 70 percent of total state revenue despite efforts under the country’s Vision 2040 strategy to diversify government income.
Hydrocarbon revenues reached 8.481 billion Omani rials (US$22.0 billion), while non-hydrocarbon revenues contributed 3.641 billion rials (US9.5 billion), according to the State’s Final Account for Fiscal Year 2025 published by the Ministry of Finance.
The non-oil revenue figure exceeded the government’s budget forecast of 3.573 billion rials (US$9.3 billion), but the increase was not enough to significantly alter Oman’s dependence on energy income.
Within non-hydrocarbon revenues, tax and fee collections reached 2.107 billion rials (US$5.5 billion), 4 percent above budget expectations.
Value-added tax generated 631 million rials (US$1.6 billion), surpassing its 580 million rials (US$1.5 billion) target, while customs duties reached 261 million rials (US678 million), compared with a budget projection of 232 million rials (US$603 million).
Corporate income tax remained the largest single non-oil revenue source, contributing 656 million rials (US$1.7 billion).
Non-tax revenues totalled 1.495 billion rials ($3.9 billion), supported mainly by investment income, which reached 805 million rials (US$2.1 billion) from returns on state assets, public companies and investments.
The government’s 2025 budget was based on an average oil price assumption of $60 per barrel, but actual prices averaged US$72 per barrel, helping strengthen fiscal performance.
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The difference highlighted the continued vulnerability of Oman’s finances to oil price movements, with a reverse trend potentially producing a significantly weaker fiscal outcome.
Under Oman Vision 2040, authorities aim to reduce reliance on hydrocarbons by expanding private-sector activity, improving investment returns and increasing non-oil revenue sources.
Analysts say economic diversification alone will not be enough unless government revenues from taxes, fees and investments grow alongside non-oil sectors.
The 2025 fiscal results show progress in expanding non-hydrocarbon income, but the 70 percent share of oil and gas revenue underscores the long-term challenge of closing the gap between Oman’s hydrocarbon dependence and its diversification ambitions.
