Hijri New Year holiday on June 29
Launched on October 10, 2009, Muscat Daily is now the largest selling broadsheet newspaper in the Sultanate of Oman with 33,500 daily copies and 28,000 subscribers.. Muscat Daily provides unrivalled national news coverage from Oman, the region and internationally.
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Observer
an hour ago
- Observer
Oman's fiscal consolidation a model of economic reform: World Bank
MUSCAT, JUNE 20 Oman's fiscal consolidation journey has been hailed by the World Bank as a notable example of effective economic reform and responsible fiscal management. In its latest Gulf Economic Update, published by the Economic Policy Unit of the World Bank Group for the MENA region, the multilateral institution highlights the measures implemented by the Omani government to restore fiscal balance following the twin shocks of the 2014 oil price collapse and the Covid-19 pandemic. 'Oman has made substantial progress in enhancing its economic resilience and building a foundation for sustainable growth,' the report stated. 'Like other GCC countries, it has grappled with the challenge of reducing dependence on oil revenues while managing public finances amid volatile global oil prices. During previous periods of low oil prices, Oman experienced twin deficits and relied heavily on borrowing to cover fiscal gaps. In recent years, however, it has undertaken significant steps to reduce its reliance on oil and strengthen fiscal sustainability.' The report cited major reforms introduced under Oman Vision 2040 and the 2020–2024 Medium-Term Fiscal Plan (MTFP) as critical to achieving this progress. These initiatives helped diversify revenue streams, improve public spending efficiency, and manage oil windfalls more prudently. 'These reforms have delivered tangible results,' the report emphasised. 'Since 2022, Oman has markedly improved its fiscal position, notably by reducing public debt through the strategic deployment of oil windfalls. This has expanded fiscal space and enhanced the country's capacity to withstand external shocks. Oman's experience stands out as a model of effective fiscal consolidation and economic reform.' The World Bank also noted Oman's gradual progress in economic diversification. While the hydrocarbon sector continues to dominate, its share of GDP has steadily declined over the past two decades in favour of services, albeit at a modest pace. Within the services sector, wholesale and retail trade, public administration, and defence remain dominant, while sectors like tourism and ICT have yet to significantly expand their economic footprint. Manufacturing has grown in importance but remains concentrated, with nearly 40 per cent of output derived from chemicals and related products. A particularly positive development is the growth of non-hydrocarbon exports, which now account for roughly one-third of total exports, compared to just 12 per cent in the early 2010s. 'Key non-oil exports include chemicals, base metals (especially aluminium), plastics, and mineral products,' the report noted. 'Re-exports — mainly vehicles, electricals, and machinery — have declined in share over the past decade. Oman's key export destinations include the UAE, Saudi Arabia, the US, and India. As for oil exports, China remains the dominant market, receiving nearly 94 per cent of Oman's crude exports.' The report also credited the MTFP with delivering successive fiscal surpluses since 2022 and significantly reducing public debt. 'MTFP targets for fiscal balance were met — and even exceeded,' the report stated. 'Public spending was significantly curtailed, dropping by around 16 per cent of GDP during the five-year period. Public debt declined sharply from approximately 68 per cent of GDP in 2020 to an estimated 35 per cent in 2024, reflecting prudent fiscal management and accelerated debt repayments.' To sustain momentum, the report recommended further domestic revenue mobilisation, with measures already underway — such as the draft Personal Income Tax (PIT) bill currently under consideration. 'Despite the progress made, Oman's economy remains sensitive to global oil prices and demand,' the report cautioned. 'Further efforts to broaden non-oil revenues and continue rationalising public spending — while improving its efficiency and equity — will require a balanced approach that ensures societal buy-in. Strengthening institutional capacity, enhancing governance, and fostering a culture of fiscal responsibility are also essential to create additional fiscal space for growth-enhancing investments and ensure long-term fiscal sustainability.' According to the World Bank, Oman's economic growth is projected to gradually accelerate, rising from 1.7 per cent in 2024 to 3 per cent in 2025, 3.7 per cent in 2026, and 4 per cent in 2027. The rebound will be driven by a 2.1 per cent increase in oil GDP in 2025 and 3.4 per cent growth in non-oil sectors, particularly in construction, manufacturing and services.
Observer
an hour ago
- Observer
Oil dives, stocks rally after Trump Middle East pause
Stock markets ticked higher on Friday while oil headed for its biggest daily drop since April after President Donald Trump pushed back a decision on US military involvement in the Israel-Iran conflict. Rising risks from the Middle East have loomed large on the world's top indexes again this week. Europe's main bourses were all between 0.5 per cent-1.4 per cent higher after similar gains across Asia, although it was touch and go whether it would be enough to prevent a second straight weekly loss for MSCI's main world index. Israel bombed targets in Iran, and Iran fired missiles at Israel overnight as the week-old war continued but Friday's market moves, which also included a modest drop in the dollar, showed an element of relief. That was largely pinned on Thursday's statement from the White House that Trump will decide in the next two weeks - rather than right away - whether the US will get involved in the war. European foreign ministers were meeting their Iranian counterpart in Geneva on Friday, seeking a path back to diplomacy over its contested nuclear programme. The relief the US wasn't charging into the conflict sent oil prices down as low as $76.10 per barrel, although they are still up 4 per cent for the week and 20 per cent for the month. "Brent crude is down 2.5 per cent today in the clearest sign that fears over an imminent escalation in the Israel/Iran conflict have eased," MUFG strategist Derek Halpenny said. Gold, another traditional safe-haven play for traders, was also lower on the day and Nasdaq, S&P 500, and Dow futures had all moved into the green as Wall Street prepared to get going again having been closed on Thursday. Asian shares had gained 0.5 per cent overnight thanks to a 1.2 per cent jump in Hong Kong's Hang Seng and as newly elected President Lee Jae Myung's stimulus plans saw South Korea's Kospi top 3,000 points for the first time since early 2022. China's central bank held its benchmark lending rates steady as widely expected in Beijing, while data from Japan showed core inflation there hit a two-year high in May, keeping pressure on the Bank of Japan to resume interest rate hikes. The dollar was ending an otherwise positive week on a modest downer, with the euro up 0.3 per cent against the US currency at $1.1527 and the pound 0.2 per cent higher at $1.3494. The US bond market, which was also closed on Thursday, resumed trading with the key 10-year Treasury bond yield flat at 4.39 per cent, while German 10-year yields, which serve as Europe's borrowing benchmark rate, fell 2.5 basis points to 2.49 per cent. Gold prices eased 0.8 per cent to $3,345 an ounce, leaving them set for a weekly loss of 2.5 per cent. But the main commodity market focus remained oil. Brent crude futures were last down $2.45, or around 3 per cent, at $76.43 a barrel in London although they were still on track to end the week almost 3 per cent higher. PVM analyst John Evans said oil producers' "nightmare scenario" was that Iran or its proxies could block the Strait of Hormuz, something which has never happened and through which 20 million barrels are shipped each day. JP Morgan estimates that amounts to about 20 per cent of all global oil trade and 30 per cent of seaborne oil trade. "The market is currently assigning a probability below 20 per cent to this happening," JP Morgan's Francesco Arcangeli wrote in a note, estimating thought that a full closure of the Strait could see oil prices surge to $120-$130 a barrel. — Reuters
Times of Oman
8 hours ago
- Times of Oman
India: Combined index of core Industries grew 0.7% in May 2025 (YoY)
New Delhi: The combined Index of Eight Core Industries (ICI) witnessed a rise of 0.7 per cent (provisional) for the month of May this year, on a year-on-year basis, as reported by the Ministry of Commerce & Industry. Additionally, the Ministry of Commerce & Industry also reported that the production of Cement, Steel, Coal and Refinery Products recorded positive growth for May, this year. The ICI measures the combined and individual performance of production of eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity. The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). Sector-wise, Coal production, which weighs 10.33 per cent of the Eight Core Industries, experienced a rise of 2.8 per cent in May 2025 over May 2024. Furthermore, the cumulative index increased by 3.1 per cent during April to May 2025-26 over the corresponding period of the previous year. Crude oil production declined by 1.8 per cent year over year, and its cumulative index declined by 2.2 per cent from April to May 2025-26 compared to the corresponding period of the previous year. Natural Gas production declined by 3.6 per cent in May 2025 over May 2024. Its cumulative index declined by 2.3 per cent during April to May, 2025-26 over the corresponding period of the previous year. The highest-weighted product out of the eight core industries is Petroleum Refinery production, which rose by 1.1 per cent in May 2025 over May 2024, and its cumulative index declined by 1.7 per cent during April to May 2025-26 over the corresponding period of the previous year. Fertiliser production (weight: 2.63 per cent) fell by 5.9 per cent in May 2025 as compared to May 2024. Its cumulative index declined by 5.1 per cent during April to May, 2025-26 over the corresponding period of the previous year. Steel production increased 6.7 per cent in May 2025 compared to May 2024. Its cumulative index increased by 5.5 per cent from April to May 2025-26 compared to the corresponding period of the previous year. Cement production also witnessed a rise. It rose by 9.2 per cent in May 2025 over May 2024, and the cumulative index increased by 7.8 per cent during April to May 2025-26 over the corresponding period of the previous year. Lastly, Electricity generation declined by 5.8 per cent in May 2025 over May 2024. Its cumulative index declined by 2.2 per cent during April to May, 2025-26 over the corresponding period of the previous year.
