Oman growth forecast raised to 3.5% by S&P Global Ratings

S&P Global Ratings has significantly increased Oman’s 2026 economic growth forecast from 1.6% to 3.5%. This upward revision is driven by rising hydrocarbon production and the country’s ability to serve as a strategic bypass for trade disrupted around the Strait of Hormuz.

Oman’s geographical position allows its crude, LNG, and refined-product infrastructure direct access to the Gulf of Oman and the Arabian Sea. This reduces reliance on transit through the Strait. Key logistics hubs such as Duqm, Sohar, and Salalah are seeing increased activity. Reports indicate that ship-to-ship oil-transfer capacity near Sohar has faced constraints due to increased demand for Saudi crude transfers following disruptions to alternative Red Sea routes.

The economic benefit extends to non-energy sectors, evidenced by a 66% rise in trade value through the Sharjah-Oman logistics corridor, which saw goods worth approximately $463 million move through the route in its first three months.