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Oman set to be fastest growing economy in GCC in 2023

With increased hydrocarbon production capacity, the country is set to maintain high growth.

Oman set to be fastest growing economy in GCC in 2023
[Source photo: Chetan Jha/Fast Company Middle East]

Oman is set to become the fastest-growing economy among the six GCC nations in 2023, with a 4.3% projected growth, according to a report by the World Bank. 

The World Bank is also predicting a slowdown of GDP growth across the GCC, revising its 2023 economic growth projection for the GCC downwards to 3.2% from the 3.7% forecast in October. 

The report indicated that Oman is expected to perform better than its fellow GCC nations amid the decreased growth. It said, “Despite weakening oil demand, Oman’s relatively high growth is expected to be sustained by increased hydrocarbon production capacity, in particular, aided by the development of new natural gas fields.”

The report noted that GCC would continue to beat the wider MENA region, with GDP to slow down to 3.0% in 2023 from 5.8% in 2022. 

Last week, S&P Global Ratings revised its outlook on Oman to positive from stable, driven by the government’s improved balance sheet, and reduced gross debt to 40% of GDP in 2022 from around 60% in 2021. 

To drive the country’s economy and boost its financial sector, Oman launched a three-year fiscal stability program in October. The National Program for Financial Sustainability and Development of the Financial 

The sector will “make the financial sector a major enabler for the growth of investments and the economy, in a manner that guarantees the continuity of all development programs, according to Oman News Agency

The country also signed agreements with fellow GCC countries to infuse its economy, such as a $3 billion railway network link with UAE and a $320 million infrastructure project with the Saudi Fund for Development. 

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