We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 1 Dec 2010 01:06 PM

Font Size

- Aa +

Oman budget surplus widens as revenue rises 19%

The budget surplus has grown 4.7% to $1.46bn in the first nine months of 2010

Oman budget surplus widens as revenue rises 19%
Omans state revenues climbed 19.4 percent in the first nine months of 2010.

Oman's
state revenues climbed 19.4 percent in the first nine months of 2010 and its
budget surplus widened further, boosted by higher oil prices, according to new
data from the Ministry of Economy released on Wednesday.

The
small crude producer that is not part of the Organisation of Petroleum
Exporting Countries (OPEC) posted a budget surplus of 563m Omani riyals
($1.46bn) in the first nine months of 2010, up 14.7 percent compared to the
same period last year, the ministry bulletin said.

The
sultanate had income of 5.8bn riyals ($15bn) from January to September, up from
4.8bn riyals ($12.4bn) in the same period in 2009, the figures showed.

Oman
set its 2010 budget with revenues of 6.38bn riyals ($16.5bn) and a deficit of
800m riyals ($2.07bn), based on an average oil price of $50 per barrel.

States
in the oil-exporting Gulf region have witnessed a higher-than-expected increase
in earnings this year as oil prices have picked up.

Oman
sold its oil at an average price of $76.58 per barrel in the nine-month period,
up 47.7 percent from a year earlier.

The
country also increased total expenditure to 5.2bn riyals ($13.5bn) in the first
nine months of 2010, up seven percent compared to the same period last year.

Omani
policymakers use fiscal policy as a key tool to steer the economy as the
country pegs its riyals to the US dollar. Spending on civil projects increased
12.5 percent to 1.6bn riyals ($4.15bn), while defense and security expenditure
rose 3.4 percent to 1.3bn riyals ($3.37bn).

Oman
had largely overshot its original expenditure plans in the past two years to
help the economy ride through the global downturn. Inflationary pressures are
on the rise again this year. However, consumer prices in Oman rose 4.2 percent
year-on-year (y-o-y) in September, up from 3.4 percent in August, according to
the data.

Arabian Business: why we're going behind a paywall

Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.