Net oil revenue at the end of March 31 was 1.71 billion riyals, based on an average price of $85 a barrel, compared to 1.57 billion riyals in the same period a year ago. year, which allowed the state’s general revenue to increase by 6% during the first quarter, recording 3.22 billion riyals.
Public spending also increased in the first quarter by 4%, compared to the same period of the previous year, to reach 2.77 billion riyals.
The latest financial performance bulletin states: “The General State Budget recorded a financial surplus at the end of the first quarter of 2023 amounting to approximately 450 million Omani riyals, compared to a surplus of 357 million Omani riyals during of the same period in 2022”.
Oman is one of the weakest economies of the Gulf oil and gas exporters, but high oil prices have supported public finances and helped reduce public debt, according to Reuters.
The finance ministry said last month it had repaid 1.1 billion riyals ($2.86 billion) of loans in the first quarter, bringing public debt at the end of March to 16.6 billion riyals.
The total debt was 17.7 billion riyals at the end of 2022.
However, Gulf economies are expected to grow at a slower pace this year as expectations of lower oil prices and worries about the global macro economy could affect earnings.
In its latest report on the region last week, the International Monetary Fund expected GDP growth to slow to 1.7% in 2023, from 4.3% last year, before picking up to 5, 2% in 2024.
The Omani economy is still primarily dependent on oil and gas revenues, despite plans to diversify revenue sources from sectors such as tourism, logistics and catering services.
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