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Key Takeaways
- Oman’s oil output rose 10.6% in the first half of 2026, according to Muscat Daily on July 28.
- Property transactions reached RO1.43bn in late July, with the market showing resilience despite regional tensions, per Oman Observer and Muscat Daily on July 29.
- Al Dhahirah recorded the highest inflation in Oman while North Al Sharqiyah saw the lowest price rise, reported Times of Oman on July 27.
- Oman’s central bank raised OMR35.5 through treasury bills, according to Times of Oman on July 27.
- Bank Dhofar plans to issue $400mln in AT1 capital instruments, as reported by Zawya on July 27.
The Data
MUSCAT — Oman’s oil output climbed 10.6% in the first half of 2026, a strong signal for the Sultanate’s fiscal position and export revenues, according to Muscat Daily on July 28. This production boost comes as the country continues to expand its energy sector capacity.
Inflation pressures are uneven across the country. Al Dhahirah recorded the highest inflation rate in Oman, while North Al Sharqiyah saw the lowest rise in prices, according to Times of Oman on July 27. This regional divergence suggests supply chain and demand factors are affecting governorates differently, with no national headline figure yet available from the National Centre for Statistics and Information.
The Central Bank of Oman raised OMR35.5 through treasury bills on July 27, according to Times of Oman, signaling ongoing liquidity management operations. The central bank’s policy stance remains focused on maintaining financial stability as the government continues its diversification agenda.
GDP growth data for the second quarter has not yet been released, but the oil output surge points to solid expansion in the hydrocarbon sector. Non-oil activity, including real estate and banking, appears to be holding up well despite external headwinds, based on the property transaction figures reported by Oman Observer on July 29.
Property Market Shows Grit Amid Regional Storm
Oman’s property market is proving resilient. Transactions reached RO1.43bn despite ongoing regional tensions, according to Oman Observer on July 29, with Muscat Daily separately confirming the market’s strength on the same date. This suggests domestic demand for real estate remains healthy even as investors weigh geopolitical risks.
The banking sector is also positioning for growth. Bank Dhofar announced plans to issue $400mln in Additional Tier 1 capital instruments, reported Zawya on July 27. This move will strengthen the bank’s capital base and support lending capacity, which could fuel further property and business investment in coming months.
What This Means
For households, inflation varies sharply by region. Families in Al Dhahirah are feeling more price pressure, while those in North Al Sharqiyah have seen milder increases, according to Times of Oman on July 27. Mortgage costs remain tied to the central bank’s treasury bill operations, which influence short-term rates.
For businesses, the oil output jump of 10.6% in H1 2026, per Muscat Daily, provides a strong tailwind for government spending and contract awards. However, companies should note the regional tensions that have tested the property market — while it has held up, borrowing costs and input prices may remain volatile in the near term.
Outlook
Watch for the National Centre for Statistics and Information to release quarterly GDP data, which will confirm whether the oil production surge translates into broader economic growth. The Central Bank of Oman’s next treasury bill auction will offer clues on liquidity conditions and rate direction.
Analysts will also track whether Bank Dhofar’s $400mln AT1 issuance, reported by Zawya on July 27, is followed by other lenders seeking to bolster capital. The property market’s ability to sustain RO1.43bn in transactions amid regional tensions will be a key test of investor confidence in the months ahead.
Data sourced from National Centre for Statistics and Information () and Central Bank of Oman (). Analysis by Economic Pulse Data Team.
Edited by Editorial Desk. Fact-checked by Editorial Desk. This is analysis, not financial advice.
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