Muscat – Preliminary data from the National Centre for Statistics and Information (NCSI) shows private sector entities in the sultanate contributed RO8.85bn to the country’s gross domestic product (GDP) in the fourth quarter of 2023. This accounted for 81.2% of the GDP at current prices, compared to 84% in the same period of 2022.

Large corporations made the biggest contribution, adding RO6.58bn to the GDP, representing 60.4% of the total, down 6.5% compared to Q4 2022. Medium size enterprises contributed RO681.9mn – 6.3% of the total – reflecting a 3.2% decrease.

Small enterprises contributed RO718.6mn – or 6.6% – showing a drop of 2%. Micro enterprises added RO870.7mn – or 8% of the GDP – an increase of 0.7%.

The number of workers in private institutions rose 6.4%  from 1.71mn in the fourth quarter of 2022 to 1.82mn in the fourth quarter of 2023. The total number of private institutions reached 240,765, up 8.7% compared to the same period in 2022.

Oman’s real GDP recorded an annual growth of 1.3% from RO37.7bn recorded in 2022 to RO38.2bn at the end of 2023, as per Ministry of Economy statistics.

The sultanate’s nominal GDP – gross domestic product at current market prices – decreased 2.8% to RO41.8bn in 2023 compared to the previous year, the ministry added.

The growth in GDP achieved last year was mainly supported by a 2.4% growth in the added value of non-oil activities. The non-oil sector’s contribution to the sultanate’s overall GDP increased from RO26.6bn in 2022 to RO27.3bn at the end of 2023.

Oil sector activities increased marginally –  0.4%  – in 2023 contributing RO12.4bn to the overall GDP compared to RO12.3bn in 2022. The slight growth in oil activities reflects the impact of developments in the global oil market and Oman’s commitment to the OPEC+ agreement to maintain stability of the oil market.

The Ministry of Economy informed that in 2023, growth rates were good despite global challenges and changes in the oil market that led to a decline in oil production and prices from the highs witnessed in 2022.

According to the ministry, the Omani economy is expected to continue to grow this and next year, with expectations of continued good levels of oil prices, good performance of non-oil activities, and constant development of new initiatives that enhance diversification efforts.

In January, the Ministry of Finance estimated Oman’s economy to achieve growth of at least 3% in 2024, while continuing to maintain annual inflation at moderate levels.

Supporting the growth are strategic investments in industrial cities and free zones, alongside major agreements in green industries and green hydrogen.