Oman economy grows 5% as oil output and trade offset regional disruptions
Oman’s economy expanded 5% in real terms in the second quarter of 2026, supported by higher oil production and increased trade through its ports, as the country benefited from its location outside the Strait of Hormuz amid the ongoing US-Iran conflict.
The sultanate has maintained energy exports and attracted shipping activity diverted from the strait, where disruptions have affected trade across the Gulf. However, economists warn that prolonged regional instability could weigh on foreign direct investment (FDI), which has supported Oman’s efforts to diversify its economy.
“Oman has been resilient to the shock in the Gulf due in large part to its position outside the Strait of Hormuz,” said Cedric Berry, director at Fitch Ratings.
Free, in under 30 seconds
Join thousands of professionals reading Salaam Gateway — the Global Islamic Economy Gateway.
Already a member? Sign in
- 5 free articles every month
- Weekly Islamic-economy newsletter
- Save articles to read later
Muhammad Ali Bandial