Oman’s GDP Rises 2.6% in Q1 2026 as Oil, Gas and Services Drive Growth

The Sultanate of Oman’s economy continued to expand in the first quarter of 2026, with Gross Domestic Product (GDP) at constant prices rising by 2.6% to reach RO 9,685.4 million, compared with RO 9,442.1 million in the corresponding quarter of 2025.

According to preliminary data released by the National Center for Statistics and Information, the growth reflects a steady improvement across key segments of the economy, supported by stronger petroleum-related activity and continued expansion in the services sector.

Petroleum-related activities recorded one of the strongest performances during the quarter, growing by 4.6% to RO 3,035.3 million, compared with RO 2,902.1 million in Q1 2025. This was driven by growth in both crude oil and natural gas activities.

Meanwhile, crude oil activities rose by 4.3%, with value added increasing to RO 2,554.1 million from RO 2,448.2 million in the same period last year. Natural gas activities posted an even stronger increase of 6.0%, reaching RO 481.2 million, compared with RO 453.9 million in Q1 2025.

The performance highlights the continued importance of Oman’s hydrocarbon sector in supporting economic growth, particularly at a time when oil and gas revenues remain central to public finances, investment activity and broader economic stability.

At the same time, non-petroleum activities also maintained positive momentum, rising by 2.4% to RO 7,039.4 million, compared with RO 6,877.0 million in the first quarter of 2025. The expansion signals ongoing resilience in the wider economy, although performance across sectors remained uneven.

Agriculture and fishing activities registered a strong increase of 6.1%, reaching RO 337.8 million, compared with RO 318.3 million in Q1 2025. The sector’s growth points to continued progress in areas linked to food security, local production and resource-based economic activity.

Industrial activities, however, declined by 1.2% during the quarter, totaling RO 1,979.7 million, compared with RO 2,004.5 million in the corresponding period of the previous year. The contraction underlines the need to monitor manufacturing and industrial output closely, particularly as the sector remains a key pillar of Oman’s long-term diversification agenda.

Services activities delivered a stronger performance, rising by 3.7% to RO 4,721.8 million, compared with RO 4,554.2 million in Q1 2025. The growth in services suggests continued recovery and expansion across key areas of domestic economic activity, supported by consumer demand, business services and broader commercial momentum.

The performance reflects a broadly positive start to the year, with both petroleum and non-petroleum activities contributing to growth. However, the decline in industrial activities shows that the diversification story remains a work in progress. While oil, gas and services provided the main lift during the quarter, sustained long-term growth will depend on strengthening industrial performance and deepening the contribution of non-oil sectors to the national economy.