Economic Committee discusses Oman’s Latest Economic Developments with the IMF Mission as Part of the 2025 Article IV Consultations

The Economic and Financial Committee of the Shura Council met this morning (Monday) with the visiting delegation from the International Monetary Fund (IMF), along with several specialists from the Central Bank of Oman. The meeting comes as part of the IMF mission’s program to conduct the 2025 Article IV consultations, and within the broader framework of cooperation between the Sultanate and the IMF. These consultations provide an important platform for exchanging perspectives on economic developments and ongoing reforms, contributing to stronger economic policymaking and supporting future growth trajectories. H.E. Ahmed Saeed Al-Sharqi, head of the Committee, outlined the committee’s pivotal role in reviewing and drafting a number of legislative proposals related to the national economy. These include recent laws governing the financial, tax, and investment sectors. H.E. emphasized the committee’s commitment to ensuring that such legislation aligns with Oman’s economic directions, strengthens the business environment, and remains consistent with international standards while also drawing on the expertise of international institutions, particularly the IMF, in evaluating the national economic landscape.

During the meeting, members of the committee presented several technical inquiries to the IMF delegation and Central Bank specialists. These focused primarily on the IMF’s latest assessment of Oman’s economy, as well as the progress of economic diversification efforts being accelerated under Oman Vision 2040. Committee members also reviewed key indicators related to the development of emerging sectors such as green hydrogen, the role of both local and foreign investment in supporting diversification strategies, and the impact of recent legislative initiatives and fiscal reforms implemented in recent years.

The discussions further covered the government’s fiscal consolidation plans and their expected impact on strengthening fiscal sustainability and enhancing spending efficiency. They also examined government strategies to contain inflation and mitigate its effects on consumers and the private sector, alongside the measures taken to reduce public debt and improve Oman’s credit rating in global markets. The IMF delegation presented its perspective on these areas, highlighting the importance of continuing structural reforms and enhancing the effectiveness of fiscal and monetary policy frameworks in the Sultanate.

The meeting also explored key challenges facing diversification efforts, including the need to create a more flexible environment for the private sector and empower it as a main partner in economic development. Other points included strengthening labor market capabilities and ensuring closer alignment between education and training outcomes and the actual needs of productive sectors. The discussion also addressed the potential implications of the new U.S. customs tariffs on Oman’s economy, both in terms of bilateral trade and supply chain dynamics.

Participants additionally reviewed the government’s efforts to enhance the Social Protection Fund system and its role in strengthening the nation’s social safety net by consolidating support and protection programs under a more effective and efficient institutional framework.

At the conclusion of the meeting, the Economic and Financial Committee expressed its deep appreciation to the IMF delegation for the technical insights shared, affirming that such meetings broaden the professional dialogue on national economic issues and reinforce Oman’s openness to international institutions and the benefits of leveraging their expertise especially as Oman remains an integral part of the global economy.

It is worth noting that the IMF mission’s visit comes under the requirements of the Fund’s Articles of Agreement, which mandate regular assessments of member states’ economies through the Article IV consultations. These consultations aim to evaluate a country’s economic and financial performance, identify strengths and challenges, and provide technical recommendations that support financial and monetary stability and advance sustainable growth prospects.