Muscat – Oman’s non-oil exports saw a nearly 12% year-on-year decline in the first five months of 2023. This drop was mainly due to reduced shipments to the United States compared to the same period last year.

The total value of the sultanate’s non-oil exports decreased to RO2.737bn during the January–May period of this year, compared to RO3.102bn worth of shipments recorded in the same period last year, according to statistics released by the National Centre for Statistics and Information (NCSI).

Oman’s non-oil exports to the United States fell by 58.7% to RO172mn during the first five months of this year, compared to RO418mn in the same period in 2022.

However, Omani exports to the Middle Eastern markets recorded significant growth this year.

Saudi Arabia emerged as the top destination for Omani non-oil exports, with the sultanate’s exports to the kingdom rising by 5.7% to RO356mn in the first five months of 2023, compared to RO337mn in the same period of 2022. Exports to the UAE increased by 2.4% to RO343mn this year.

Oman’s non-oil shipments to India marginally decreased by 0.8% to RO302mn during the first five months of 2023, compared to RO304mn in the corresponding period last year.

In a significant shift in the direction of Omani exports, South Africa emerged as the fourth-largest destination for Omani non-oil products this year. The value of exports to South Africa surged by more than 130% to RO202mn during the January–May period of 2023, compared to RO88mn recorded in the same period in 2022.

The sultanate’s exports to other countries combined declined by nearly 16% to RO1.362bn this year, compared with RO1.621bn recorded in the first five months of 2022.

The export of mineral products, which account for a major chunk of Oman’s non-oil exports, increased by 8% to RO895mn this year, against RO829mn recorded in the first five months of 2022.

On the other hand, the export of base metals and their related products decreased by 22.3% to RO515mn in the first five months of this year, down from RO662mn worth of shipments in the same period of 2022.

The export of chemical products plunged by 25.7% to RO468mn during the January–May period of 2023, compared to RO629mn recorded for the same period in 2022.

Regional demand boosts re-exports

Growing economic activity and improving demand in the Gulf region significantly contributed to Oman’s growth in re-exports this year.

NCSI data showed that total re-exports from Oman grew by 28.7% in the first five months of 2023, reaching RO654mn, compared to RO508mn in the same period of the previous year.

The value of re-exports to the UAE surged by 31% to RO239mn in the first five months of 2023, while re-exports to Qatar jumped by 78% to RO37mn this year, compared to RO21mn recorded in the same period in 2022.

Re-exports to Kuwait more than doubled to RO36mn in the first five months of 2023, compared to RO17mn last year, while re-exports to the Saudi market grew by 34.5% to RO35mn this year, up from RO26mn in the same period a year ago.

Moreover, re-exports to Iran rose by 23.2% to RO95mn in the first five months of 2023, compared to RO77mn in the same period a year ago.