Economy in 2007

• Judicious macro-economic management strategy has ensured a positive performance for the Sultanate despite the decreasing oil production.
• Preliminary estimates of GDP indicate that the national economy achieved a growth of 11.6% in 2007.
• Oil has continued to be at the hub of Oman’s economic activities in 2007 contributing significantly to the country’s Gross Domestic Product (GDP).Backed by increasing sales of Liquefied Natural Gas (LNG), Oman has registered stable economic growth with substantial investments in power, telecommunications, tourism and downstream industries.
• Inspite of a decline in production of oil by 3.7%, the sector grew by 5.5% due to an increase in oil prices and a higher contribution from gas revenue.
• Oman is expected to achieve a financial surplus of $ 4.5 billion in 2007.
• Exports grew by 4% whilst imports grew by 46%.
• A notable feature of Oman’s economy is the promising growth of the service sector. The services sector reportedly registered a 19 percent growth for the current year.
• 2007 must be characterized as the year of Tourism. A number of major projects were initiated in the year 2007. The sector grew by 8%.
• The country has registered key progress in the diversification of economic activities, including the development of Duqm, Sohar and Salalah ports.
• The inflation rate in the first 10 months of the year was 5.3%. A strong local demand, high growth of the economy, increase in property rentals, weakening of the US Dollar and inflation in the major trading partners all contributed to this high rate.
• One of the key performance indicators of Oman’s economy has been the ascendant and stable Muscat Securities Market (MSM). This has largely been attributed to the increasing presence of foreign investors in the local market and a high confidence level of investors.
• The Muscat Securities Market performed very well. The general index rose to 8443 points, a gain of 54%. The market capitalization grew by 50% and reached a record level of US$ 23.4 billion.
• A tropical cyclone, Gonu, struck northern Oman in June causing extensive damage to infrastructure in the capital and other areas. The country recovered from the devastating impact very quickly.
• Oman moved up to 18th spot in the Economic Freedom Survey released by the International Research Foundation.
• The World Economic Forum has ranked Oman the second best performing Arab economy among 40 countries in their middle stage of development.
• Oman was declared the most peaceful country in the Middle East topping a list of 18 regional countries featured in the first ever Global Peace Index compiled by the Economist Intelligence Unit. It was also ranked 22nd out of 121 countries in the world.
• Oman was ranked sixth among countries in the Middle East and 42nd in the world in a global competitive index prepared by the World Economic Forum.