Muscat – Oman’s economy expanded 5.1% year-on-year in the second quarter of 2026, accelerating sharply from the first quarter as a strong increase in oil and gas activity drove overall growth despite subdued expansion in non-oil sectors.

Gross domestic product (GDP) at constant prices, or real GDP, rose to RO9.889bn in Q2 2026 from RO9.405bn in the corresponding quarter of 2025, according to preliminary data released by the National Centre for Statistics and Information (NCSI) on Sunday.

Oman’s real GDP had grown 3.0% year-on-year in the first quarter of 2026.

The latest figures show that the acceleration in overall economic growth was driven predominantly by the petroleum sector. Value added from petroleum activities increased 14.7% to RO3.413bn in Q2 2026 from RO2.976bn a year earlier.

Within the sector, crude oil activity grew 15.2% to RO2.874bn, while natural gas activity increased 11.7% to RO539.1mn.

The strong expansion in hydrocarbon activity comes as Oman increased oil production and exports despite disruptions to regional energy flows during the quarter. The country’s oil and gas infrastructure has remained largely unaffected by the regional conflict, with major ports located outside the Strait of Hormuz, according to the International Monetary Fund. The IMF said in June that this had enabled Oman to increase oil production and exports amid regional supply disruptions.

The sultanate’s total oil production rose 11.3% year-on-year to nearly 234mn barrels during the first seven months of 2026, reflecting higher crude output and continued export operations.

Meanwhile, Oman’s non-petroleum GDP increased 0.7% year-on-year in Q2 2026, rising to RO6.922bn from RO6.877bn a year earlier. Performance was mixed across the main non-oil sectors.

Services activity grew 1.5% to RO4.652bn, supported by increases in financial and insurance activities, wholesale and retail trade, professional and technical services, education, health and other services. Agriculture and fishing grew 2.3% to RO325mn.

Industrial activities, however, contracted 1.5% to RO1.945bn from RO1.975bn in Q2 2025. Mining and quarrying was a notable exception, growing 6.2%, while manufacturing edged up 0.5%.

Within manufacturing, higher production of basic chemicals was offset by declines in refined petroleum products and other manufacturing activities.

Construction remained a drag on the non-oil economy, contracting 4.6% in Q2.

The Central Bank of Oman has projected real GDP growth of 4% for 2026, compared to 2.4% in 2025, while the IMF has projected growth of around 3.7% for the year, driven by increased oil production.