Economic Outlook for 2008

• A growth oriented budget, envisaging a total expenditure of US$ 15 billion has been announced in Oman.
• Revenues are forecast to be US$ 14 billion, based on an assumption of an average oil price of US$ 45 per barrel and production of 790,000 barrels per day.
• An increase of $ 2.4 billion in expenditure represents 19% growth over previous year.
• Development of projects listed in the Seventh Five Year Plan (2006-2010) received an allocation of US$ 1.9 billion representing an increase of 45% over last year.
• Production of oil and gas, reconstruction after cyclone gonu, ports and gas together account for an allocation of US$ 6 billion.
• The economy is expected to perform exceptionally well, considering the increase in oil production, high price of oil, rise in government expenditure and implementation of several new projects.
• Major developmental expenditure involving roads, ports and airports will spur the growth of the economy. Duqm and Sohar Port areas will lead the developmental efforts.
• Tourism is expected to play a major part in the growth of the economy in 2008