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Thu 1 Mar 2012 11:01 AM

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Oman’s GDP up 23.3%

GDP in the non-OPEC producer state reaches $51.9bn as oil prices rise

Oman’s GDP up 23.3%
Oil activity in the non-OPEC producer state increased 34.9 percent. (Getty Images)

Oman’s GDP increased 23.3
percent to OMR20bn ($51.9bn) during the first three quarters of 2011 as the
cost of oil increased and the Gulf state raised its crude oil output, according
to official data.

Oil activity in the non-OPEC
producer state increased 34.9 percent for the nine period ending September
while average daily production rose to 883,200 barrels from 860,200 barrels for
the same period the previous year, Oman’s state news agency said.

Non-oil related activities,
both service and production, recorded a 13.1 percent growth to OMR10.1bn.
Industrial services rose 18 percent, services by 11.5 percent and agriculture
and fisheries activities by four percent during the period.

Oman, whose debt to GDP is
forecast by the IMF to be the lowest in the GCC at 3.2 percent this year, said
last month it would raise its state expenditure this year if it needed.

“If there is any need
arising during the year, then of course we will [spend more],” Finance Minister
Darwish al-Balushi told Reuters. “As far as a sovereign bond is concerned, we
do not have any plan for tapping the market, whether it is Islamic or
conventional,” he added.

The Gulf state, which saw
hundreds of Omanis take to the streets to demand more jobs and better pay amid
the Arab Spring protests last year, said it planned to boost its budget
spending by 26 percent to OMR54bn in its five-year plan in a bid to create jobs
and improving living conditions.

Oman’s ruler Sultan Qaboos
bin Said promised $2.6bn in additional spending in April and announced plans to
create 50,000 new jobs to defuse social tensions.

Vinay 7 years ago

I believe Oman should in fact train its younger generation population in more productive and professional job sectors rather than relying on more Oil revenues for the future, cause its gonna backfire when Oil will eventually Dry up in that Gulf state.His excellency Sultan Qaboos is a benevolent ruler, But still a lot needs to be done to keep Oman in its present status for the future generations to come.