Oman posts biggest budget surplus in a decade

RECORD SURPLUS: A general shot of the Omani capital Muscat. The Gulf state posted a fiscal surplus of $1.13 billion for 2007. (Getty Images)

Gulf Arab oil and gas producer Oman posted its biggest budget surplus this decade in 2007 after reaping more revenue from oil and gas exports as global energy prices surged, central bank data showed on Monday.

The non-Opec oil exporter recorded a fiscal surplus of 434.3 million rials ($1.13 billion) in 2007, its largest surplus since at least 2000 and a ten-fold rise over 2006, the central bank said in a report on its website.

Like other states in the world's biggest oil-exporting region, Oman's economy is surging on a near six-fold rise in oil prices in the last six years.

Oman had projected oil at $40 a barrel in its 2007 budget, while the average price of benchmark US oil was $72.36 last year. All Gulf Arab states calculate their budgets assuming conservative oil prices to avoid the impact of fluctuations.

State revenue grew 16.6% to 5.81 billion rials as net oil revenue, excluding funds transferred to a state reserve, advanced 12.5% to 3.63 billion rials and gas revenue jumped 32.2% to 810.9 million rials, the data showed.

Expenditure in the Gulf state that been ploughing windfall oil and gas revenues into real estate, infrastructure and financial services to diversify its economy climbed 8.8% to 5.37 billion rials, the central bank said.

Oman, whose $40.3 billion economy grew 7.2% in real terms in 2006, expects oil output to rise to 790,000 barrels per day (bpd) this year from 710,000 bpd in 2007, the oil ministry has said. It also aims to boost gas output by 11% in 2008.

Oman said in November it expected to post a 400-million-rial shortfall in its 2008 budget if its crude oil fetched $45 a barrel on average. Oil prices, which surged to a record of just under $120 a barrel on Monday, have averaged $101.38 so far this year. (Reuters)

Print | Email | Discuss this article |

USER COMMENTS (0 COMMENTS)

POST A COMMENT

CLICK HERE TO POST A COMMENT

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.