Boom in oil prices is a boon for Oman's GDP
The Omani economy benefited from the boom in oil prices, with the Gross Domestic Product (GDP) registering a rise of 22.7 percent at the current prices in 2011. The Sultanate’s GDP rose to RO 27 billion (RO 27,945.4 million) at the end of 2011, compared to RO 22,773 million as at the end of 2010.
The GDP in oil activities grew by 36.3 percent in 2011. It increased from RO 10,428.2 million at the end of 2010 to RO 14,216.4 million at the end of 2011. Crude oil constituted the bulk share of this increase. Crude oil added value stood at RO 13,184.3 million (about 92.7 percent) of the total oil activities. This sector achieved a growth rate of 37.9 percent in 2011.
Natural gas constituted 7.3 percent of the total oil activities and its growth touched RO 1,032 million or 18.7 percent in 2011. The non-oil sector’s GDP registered a growth of 11.4 percent at the current prices in 2011 and soared to RO 14,275.4 million, compared to RO 12,815.4 million in 2010. Statistics show that the converting industries registered a growth of 17.5 percent and that the added value for electricity and water supplies grew by 9.5 percent, while the construction sector grew by 5.8 percent.
The performance of the service sector has been good as the transport, storing and communications sector grew by 16.4 percent, the wholesale and retail trade registered a growth of 12.1 percent, the real estate and leasing activities and business ventures grew by 8.4, the brokerage, hotels and restaurants sectors achieved growth of 8.1 percent and 1.5 percent, respectively. The almost three-fold growth rates of the non-oil activities have contributed to realising a radical change in the structure of the GDP in favour of the oil activities.
While the relative importance of the oil activities rose from 45.8 percent in 2010 to 50.9 percent in 2011, the relative importance for the non-oil activities declined from 56.3 percent to 51.1 percent at the same period. Meanwhile, the small and medium enterprises, which form the backbone of any country’s economy, contribute 16 percent to the GDP. This sector form 90 percent of the trade in the country.
- Does this spell the end for the tax haven dream? Crisis looms for the GCC as the rich Gulf could be in financial jeopardy
- Saudi Oil Chief spills! Shoots down conspiracy theories on oil prices
- Oil prices: the honeymoon is over
- Betting on the counterintuitive? Understanding Saudi Arabia's logic, or lack thereof, behind not cutting oil output
- Oil markets downward spiral 'unbriddled'