Worrisome economic imbalances

C3

SENSITIVE RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in August 2021.

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GDP USD76.33bn (World ranking 69, World Bank 2020)
Population 5.11mn (World ranking 119, World Bank 2020)
Form of state Monarchy
Head of government Sultan and Prime Minister HAITHAM bin Tariq Al Said
Next elections 2023, legislative
  • Sufficient energy (oil and gas) resources for around 10 more years
  • Strategic location on the Straits of Ormuz and closeness to Gulf, Asian and African markets
  • Modern infrastructure (roads, airports, sea ports, telecommunications)
  • Energy dependence (oil and gas represent almost two thirds of export earnings) while proven reserves have a limited time horizon (10 years)
  • Closeness to regional conflicts (Iran, Yemen)
  • Huge twin deficits which are likely to persist for longer
  • Sharply rising public and external debt since 2015
  • Export dependence on China which accounts for 39% of total Omani exports (a rebalancing in China could have adverse effects on Oman’s trade balance)

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
China 41.8%
1
46.5% United Arab Emirates
Saudi Arabia 10.9%
2
7.0% India
Korea, Republic of 8.5%
3
5.5% China
United Arab Emirates 7.5%
4
4.8% Qatar
India 6.5%
5
3.4% Saudi Arabia

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Petroleum, petroleum products and related materials 45.1%
1
7.0% Petroleum, petroleum products and related materials
Organic chemicals 9.6%
2
6.9% Other industrial machinery and parts
Gas, natural and manufactured 8.1%
3
6.4% Iron and steel
Metalliferous ores and metal scrap 6.9%
4
5.1% Road vehicles
Iron and steel 4.9%
5
4.5% Electrical machinery, apparatus and appliances, n.e.s.
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