Oman to backpedal on key reforms in favor of social stability
To:
Al-Monitor Pro Members
From:
Sebastian Castelier
Business journalist covering Gulf economies
Date:
Jan. 2, 2023
Bottom Line:
The wave of economic reform that has swept through Oman since 2020 to rein in budget deficits spinning out of control enters a consolidation phase. Elevated oil prices in 2022 fueled a buyback of public debt to put state finances on a short-term sound footing. Still, the underlying economic landscape remains fragile as diversification plans struggle to take shape. A rebound in global tourism fueled by the return of Chinese tourists benefits Oman, but its positioning on high-end markets prevents the sector from becoming a central pillar of the local economy. Investments in gas and hydrogen are a glimmer of hope.