MUSCAT : Oman’s nominal GDP grew 4.7% in the first quarter of 2025 compared with the same period a year earlier, driven mainly by a 6.8% expansion in the non-hydrocarbon sector, according to the National Centre for Statistics and Information. Real GDP rose 2.5%, supported by a 4.4% gain in non-oil activities.

Oil continued to weigh on the outlook, with average crude prices slipping 12.1% year-on-year to $72.5 per barrel in July, while production edged down 0.4% to 991,100 barrels a day. Inflation remained modest at 0.8%.

The banking sector showed resilience. Credit extended by banks grew 8.9% to OMR 34.1 billion, with private sector lending up 6.4% to OMR 27.9 billion. Deposits climbed 6.1% to OMR 32.9 billion, led by households. Islamic banking continued to expand rapidly, with assets rising 16.8% to OMR 9.1 billion, nearly a fifth of total banking system assets.

Monetary supply also strengthened, with broad money (M2) up 5.2%. Meanwhile, lending and deposit rates eased slightly, in line with global trends.