Oman’s Trade Surplus Rises to $19.4 Billion, Driven by Oil and Gas Exports

Oman’s trade surplus climbed to 7.5 billion Omani rials ($19.4 billion) in December, up from 7.14 billion rials in November, fueled by strong oil and gas exports, according to data from the National Centre for Statistics and Information (NCSI).

Surge in Exports

The total value of merchandise exports in December rose to 24.23 billion rials, marking a 6.8 percent year-on-year increase compared to 22.69 billion rials in December 2023. The key driver of this growth was the oil and gas sector, which saw exports jump by 18.4 percent to 16.29 billion rials from 13.76 billion rials a year earlier.

Crude oil exports stood at 9.91 billion rials, reflecting a modest 0.8 percent increase, while refined oil exports saw a remarkable 185.5 percent surge to 3.85 billion rials. Conversely, liquefied natural gas (LNG) exports declined slightly by 1.9 percent to 2.53 billion rials.

However, non-oil exports dipped by 16.3 percent to 6.23 billion rials, with mineral product exports experiencing a 36.8 percent decline to 1.78 billion rials. Base metal exports remained stable at 1.32 billion rials, and plastic and rubber product exports increased by 13.3 percent to 996 million rials.

Import and Re-Export Trends

Merchandise imports grew by 12.1 percent year-on-year, reaching 16.71 billion rials in December, up from 14.91 billion rials in 2023. Despite this increase, Oman maintained a positive trade balance, driven by strong energy exports.

Re-exports from Oman rose by 14.9 percent, totaling 1.71 billion rials. Food and beverage re-exports grew by 30.6 percent to 184 million rials, while mineral product re-exports climbed 21.3 percent to 120 million rials. However, re-exports of transport equipment and electrical machinery declined slightly.

Top Trading Partners

The UAE remained Oman’s leading trade partner for non-oil exports, with trade rising 11 percent year-on-year to 1.05 billion rials. It also led in re-exports, amounting to 569 million rials, and was the largest source of imports, totaling 3.94 billion rials.

Saudi Arabia ranked as the second-largest destination for Omani non-oil exports at 849 million rials, followed by India at 659 million rials. China and Kuwait were also major trade partners, with China ranking as the second-largest exporter to Oman, with trade valued at 1.83 billion rials.

Oil Production and Banking Growth

Crude oil exports until the end of January stood at 25.82 million barrels, with an average price of $72.5 per barrel. However, crude oil exports declined by 1.5 percent compared to January 2024. Total oil production also fell by 2.2 percent to 23.39 million barrels, with daily average output standing at 987,500 barrels.

The banking sector showed positive growth, with total credit provided by conventional banks rising by 4.8 percent by the end of December. Private sector credit grew by 3.6 percent to 20.7 billion rials, while investment in securities increased by 20.5 percent to 6 billion rials. Deposits at conventional banks rose by 6.2 percent to 25.1 billion rials, with government deposits increasing by 5.3 percent.

Oman’s trade performance in December underscores the continued strength of its oil and gas sector while reflecting shifts in import and export trends across various industries.