Oman posts $927m quarterly surplus after oil prices rose

Oman recorded a budget surplus of OMR357m ($927m) in the first three months of the year as oil income rose, vowing to increase spending on priority development projects and reduce its debt.

Revenues rose more than 66 per cent during the quarter to around OMR3bn ($7.79bn), compared with OMR1.8bn a year ago, while total spending stood at OMR2.7m, according to the Finance Ministry. Oman ran up a OMR751m deficit during the same period last year.

The International Monetary Fund forecasts Oman needs oil prices of $73 a barrel to balance its books this year.

The small Gulf nation has been implementing a series of reforms to bridge its budget shortfall and lower debt, including introducing a 5 per cent value-added tax last year.

The Finance Ministry expects the economy to grow 5.6 per cent in 2022, in line with IMF predictions.