by Zakariya Al Saadi Ambassador of Oman to Korea
by Zakariya Al Saadi
Ambassador of Oman to Korea
Omani Ambassador to Korea Zakariya Al Saadi held a national day event, commemorating the Al Busaidi State Foundation Day on Nov. 20, at the Hotel Lotte in Seoul. The following is an excerpt from his congratulatory speech on Oman’s economic development.
The Omani economy demon-strated commendable growth in 2025, a testament to its strategic pursuit of economic diversification, the augmentation of non-oil revenue streams, and the expansion of its productive economic base. The average inflation rate of Oman from the beginning of the year until the end of the third quarter of 2025 was recorded at 0.80%. the gross domestic product (GDP) achieved a real growth of 2.3% during the first half of 2025 compared to the same period last year.
These concerted efforts have collectively served to underpin the expansion of the Gross Domestic Product (GDP), attract heightened investment inflows, and invigorate the private sector.
The Tenth Five-Year Development Plan (2021-2025) delivered favour-able results, thereby fortifying con-fidence in the nation’s trajectory towards comprehensive and balanced development.
These outcomes have solidified the Sultanate of Oman’s steadfast commitment to its course of economic diversification and sustainable growth, a path underscored by the national economy’s persistent advancement and the amelioration of its key financial and economic indicators.
The Sultanate of Oman successfully enhanced its economic and fiscal performance while concurrently reducing its debt burden. The total public debt stood at approximately RO 14.1 billion by the conclusion of the second quarter of 2025, compared to roughly RO 14.4 billion recorded at the end of the corresponding period in 2024.
Cumulative public revenues accru-ed by the state until the end of the second quarter of 2025 reached nearly RO 5.839 billion.
Conversely, total public expenditure amounted to approximately RO 6.098 billion, reflecting an increase of RO 292 million, or 5%, over the actual expenditure for the similar period in 2024. This augmentation is principally ascribed to a rise in developmental outlays relative to the same timeframe in 2024.
The trade balance for the Sultanate of Oman registered a surplus of RO 3.555 billion by the end of July 2025. This compares to a surplus of RO 5.432 billion witnessed during the same interval in 2024, representing a decline of 34.6%.
The Sultanate of Oman’s non-oil commodity exports exhibited robust growth of 11.3%, achieving a value of RO 3.890 billion by the end of July 2025, as opposed to RO 3.497 billion during the comparable period of 2024.
The Gross Domestic Product of the Sultanate of Oman, measured at current prices, experienced an increase of 0.6% in the second quarter of 2025. It attained a value of RO 10.171 billion at market prices, compared to RO 10.109 billion during the same quarter of 2024.
The credit rating agency Standard & Poor’s affirmed the Sultanate of Oman’s investment-grade credit rating at “BBB-” with a stable outlook.
The agency cited the government’s adherence to fiscal discipline and its capacity to sustain economic stability notwithstanding volatilities in oil prices. The agency further projected that real Gross Domestic Product growth would accelerate from 1.7% in 2024 to exceed 2% for the period spanning 2025-2028, an expansion buoyed by the growth of non-hydrocarbon sectors.
The cumulative volume of Foreign Direct Investment in the Sultanate of Oman reached about RO 30.279 billion by the end of the second quarter of 2025, accompanied by inflows totalling RO 3.434 billion.
The Special Economic Zones, Free Zones, and Industrial Cities located throughout the Sultanate of Oman’s governorates are commanding con-siderable investor interest. This coincides with an intensified focus on executing numerous projects within the enabling infrastructure sector, all aimed at attracting investments, refining regulatory frameworks, and promoting available investment opportunities.
The investment volume in the special economic zones, free zones, and industrial cities has doubled over the past five years, rising from RO 14.12 billion to reach RO 22 billion by mid-current year. Concurrently, the workforce within these zones and cities has expanded to approximately 80,000 male and female workers, among whom about 39% are Omani nationals.
Furthermore, 138 new investment contracts were signed with a total value of RO 1.049 billion. The industrial sector accounted for 97% of the total added investment volume in the first half of 2025.
It is anticipated that the economic zones and free zones will witness qualitative projects in several sectors in the forthcoming period, such as mining, metal industries, and green hydrogen, particularly in the Special Economic Zone at Duqm, which stands as a promising hub for such ventures.
Throughout the first half of 2025, the Economic Zones, Free Zones, and Industrial Cities successfully secured new investment commitments exce-eding RO 1.053 billion.
The Sohar Free Zone led all zones in the volume of investments attracted, registering an additional RO 711.4 million. The Industrial Cities followed in second place with an investment volume of RO 175.2 million, and the Salalah Free Zone ranked third with RO 131.8 million.
The Special Economic Zones, Free Zones, and Industrial Cities are distinguished by a multitude of advantages and investment incentives, including exemptions from taxes and customs duties, permission for 100% foreign ownership, complemented by integrated one-stop-shop services and a suite of electronic services, most notably the facility for selecting land plots electronically.
Furthermore, the inflation rate in the Sultanate of Oman has stabilized at a moderate level, registering a notably low figure compared to the actual economic growth rate achieved during the Tenth Five-Year Development Plan 2021-2025.
This stands as a significant ac-complishment, demonstrating the Omani economy’s capacity for sustained growth and its ability to overcome challenges amidst the implementation of the objectives of “Oman Vision 2040” and the economic diversification strategy aimed at elevating growth rates, supporting the performance of various economic sectors, and propelling them towards expansion and increased value-added contribution to the national economy.
The average inflation rate from the beginning of the year until the end of the third quarter of 2025 was recorded at 0.80%.
The Gross Domestic Product achieved a real growth of 2.3% during the first half of 2025 compared to the same period last year.
The inflation rate in the Sultanate of Oman is projected to reach approximately 0.9% by the end of this year (2025) on an annual basis, according to estimates from the International Monetary Fund.
Projections indicate that the domestic economy will register a real growth of around 2.9% in 2025, with a likely acceleration to approximately 3.7% in 2026, supported by the continued momentum of non-oil sectors and the easing of oil production constraints.
OIA, The Oman Investment Authority, for its part, is dedicated to forging robust partnerships with the private sector and attracting strategic investment alliances from beyond the nation’s borders.
Its assets have ascended to surpass the threshold of RO 20 billion, following the realization of profits amounting to RO 1.585 billion and a contribution of RO 800 million to the state’s general budget.
This distinguished performance was instrumental in the Authority securing a global ranking of 8th in the five-year investment return rate among sovereign wealth funds, as detailed in a report published by the Global SWF institute.
The Authority’s investments are strategically allocated across its three core portfolios: the National Development portfolio, the Gene-rations portfolio, and the Future Fund Oman.
These investments are geogra-phically diversified across more than 50 nations worldwide, with the Sultanate of Oman itself representing the foremost allocation at 61.3%. This is followed by North America with 19.9%, and subsequently by Europe, Asia, Africa, and Latin America.
Furthermore, the Oman Investment Authority has announced the suc-cessful completion of 14 distinguished national projects, representing a total investment value exceeding RO 450 million.
These projects are strategically distributed across the various governorates of the Sultanate of Oman and are poised to generate approximately 1,350 new employment opportunities.
These positions are diversified within vital sectors, encompassing food security, manufacturing indu-stries, and water resources.
Political and diplomatic engage-ments of Oman resolutely affirm the steadfast nature of its core tenets and the defining parameters of its foreign policy.
These are built upon enduring bonds of amity with all nations and peoples, founded upon mutual respect, shared interest, non-interference in internal affairs, and reverence for international and regional covenants, treaties, and the precepts of international law.
The Sultanate of Oman champions the principles of dialogue and tolerance as its guiding philosophy for resolving diverse issues and challenges, fostering constructive cooperation, and cultivating harmony among states.
In this context, His Majesty the Sultan has undertaken a series of visits to several Arab and foreign countries. These visits were aimed at fortifying the foundations of friendship, reinforcing bilateral relations, and giving tangible expression to the continuity of cooperation and close diplomatic partnerships.
They further sought to enhance collaboration with these countries across myriad sectors and developmental opportunities, there-by serving mutual interests and aspirations. A key focus has been capitalizing on signed agreements, translating them into concrete, exe-cutable programs that advance the nation’s developmental objectives.
The itineraries included the Republic of Türkiye, the Kingdom of Belgium, the Kingdom of the Netherlands, the Russian Federation, the Republic of Belarus, the People’s Democratic Republic of Algeria, and the Kingdom of Spain. His Majesty also held a meeting with the King of the United Kingdom of Great Britain and Northern Ireland and Head of the Commonwealth, alongside a meeting with the Prime Minister of the United Kingdom.
Concurrently, the Sultanate of Oman has been honored by visits from a distinguished assembly of monarchs, heads of state, and senior officials.
These esteemed guests have included: the King of the Kingdom of Bahrain; the Emir of the State of Kuwait; the Emir of the State of Qatar; the President of the United Arab Emirates; the President of the Islamic Republic of Iran; the Prime Minister of the Republic of Iraq; the Ruler of the Emirate of Sharjah; the Crown Prince of the Emirate of Dubai; the President of the Republic of Belarus; the President of the Republic of Türkiye; and the President of the Republic of Angola.
In its steadfast pursuit of global peace and security, the Sultanate of Oman hosted on 12 April 2025 pivotal negotiations concerning the Iranian nuclear file between the Islamic Republic of Iran and the United States of America, conducted under its esteemed mediation.
The Iranian delegation was led by Dr. Abbas Araghchi, Iranian Minister of Foreign Affairs, while the American delegation was headed by Steve Witkoff, the US Presidential Envoy for the Middle East. The diplomatic endeavour comprised five rounds, convened in both Muscat and Rome, all of which were characterized by a constructive and amicable spirit that significantly contributed to a convergence of viewpoints.
Concerning the situation in Yemen, the Sultanate of Oman stated on 6 May the successful facilitation of a truce agreement between the United States of America and the Ansar Allah movement in Yemen. This accord mandates a complete cessation of hostilities, which includes a commitment to desist from targeting American maritime vessels in the Red Sea and the Bab el-Mandeb Strait, thereby ensuring the fundamental principles of freedom of navigation and the uninterrupted flow of international commercial shipping.
Guided by its unwavering respect for international and regional covenants, the tenets of international law, and its bonds with Arab and foreign nations, the Sultanate of Oman has articulated a resolute and principled stance on several critical issues. It has forthrightly condemned the brutal aggression perpetrated by Israel against the territories of the State of Qatar, alongside the abhorrent acts of political assassination and the perfidious conduct exhibited by Israel.
These actions constitute a flagrant transgression of international law, a gross violation of national sovereignty, and a perilous escalation that imperils the security and stability of the entire region, diverting it from the path of peace.
On the Palestinian cause, the Sultanate of Oman has voiced its utmost condemnation and denunciation of the relentless aggression being waged by the Israeli occupation forces against the Gaza Strip.
It has solemnly called upon the international community, and the United Nations Security Council in particular, to assume its responsibility by enacting decisive measures to ensure the protection of civilians, put an immediate end to these severe and ongoing violations, and uphold the foundational principles of international law.
The Sultanate of Oman has reiterated that justice for the Palestinian people is inextricably linked to the termination of the Israeli occupation of their lands and the restoration of their legitimate rights, paramount among which is the establishment of their independent and sovereign state, with East Jerusalem as its capital, in line with the resolutions of international legitimacy and the Arab Peace Initiative.
Furthermore, the Sultanate of Oman has emphasized the critical need for the international community to adopt an unambiguous and firm position to counter the dangerous trajectory that seeks to marginalize diplomatic avenues and jeopardize regional security and stability.
This follows the reprehensible military aggression launched by Israel against the territories of the Islamic Republic of Iran, which involved strikes on sovereign installations and resulted in casualties.
Oman affirmed that such an act represents a grave and reckless escalation, constitutes a blatant breach of the United Nations Charter and international law, and embodies a pattern of unacceptable aggression that systematically undermines the very foundations of regional stability.
Oman has also appealed to the international community, especially the Security Council, to uphold its legal and moral obligations by ensuring the complete withdrawal of Israeli forces from the occupied Syrian territories, halting all acts of hostility that endanger civilian lives, and advancing a comprehensive political solution as outlined in United Nations Security Council Resolution 2254.
This resolution envisages a restoration of stability in Syria through a Syrian-led political transition, and the Sultanate of Oman underscores the necessity of preserving Syria’s sovereignty and territorial integrity throughout this process.
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