Omani nominal economy up by 16.2% in H1

Strong oil prices boosted Oman’s economy by around 16.2 per cent in current prices in the first half of 2012 and most hydrocarbon and non-oil sectors recorded sharp expansion, according to official data.

From around RO13.08 billion (Dh125 billion) in the first half of 2011, the Gulf country’s nominal GDP swelled to about RO15.2 billion (Dh146 billion) in the first half of 2012, showed the figures by the Omani Ministry of Economy.

A breakdown showed the hydrocarbon sector surged by 19.9 per cent, including 20.1 per cent for the crude sector and 16.8 per cent for gas.

The non-oil sector rose by about 12.6 per cent, with the industrial sector expanding by nearly 10.9 per cent and services by 13.8 per cent.

In its monthly bulletin, the Ministry said the oil sector expanded from around RO6.59 billion in the first half of 2011 to RO7.86 billion in the first half of 2012, maintaining its position as the largest component of the country’s GDP, accounting for just over half the overall economy in the first half of this year.

The surge in the hydrocarbon sector was mainly a result of higher oil prices and production. The price of Oman’s crude jumped to nearly $114 in the first half of 2012 from an average $98 in the first half of 2011 while the country’s crude production swelled to nearly 902,100 bpd from 878,800 bpd.

In a recent study, a key Saudi bank said it expected Oman’s economy to record strong growth in the next few years following a 6.6 per cent expansion in 2011 because of strong oil prices and high public spending.

Real growth in the coming years will be driven by the non-oil sector, which will be felled by massive infrastructure expenditure of nearly $78 billion, said National Commercial Bank, the Gulf Kingdom’s largest bank.

After a sharp slowdown in 2009 at around 1.1 per cent because of lower crude prices, real GDP growth largely rebounded to four per cent in 2010 and recorded one of its highest levels of 5.5 per cent in 2011, NCB said.

Growth is projected at around 3.9 per cent in 2012 but will likely pick up to 4.2 per cent in 2013 before slipping to four per cent in 2014.

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