Growth in energy consumption is driven by the increase in demand for electricity by both the residential and industrial sectors. The government subsidises gas that is allocated to industrial projects, to promote growth and encourage foreign companies to undertake projects in the sultanate. Nevertheless, likely cuts to natural gas subsidies during the forecast period will moderate the pace of consumption growth.
Oman lacks the energy and financial reserves of its wealthy Gulf neighbours and its state budget has been hit hard by the decline in oil prices. The sultanate, which relies on hydrocarbons export earnings for nearly three-quarters of its fiscal revenue, is forecast to run a sizeable fiscal deficit of 16.9% of GDP in 2016. However, this deficit will generally decline to an annual average of 6.4% of GDP in 2017-20 in line with the general recovery in oil prices.
Industry List: Alternatives, Energy, Coal, Energy, Electricity, Energy, Energy, Energy, Nuclear, Energy, Oil and gas
Industry Codes (NAIC): 22
Industry Codes (SIC): 49
Energy report: Overview
Energy report: Energy policy
Energy report: Oil and gas
Energy report: Electricity
Energy report: Coal
Energy report: Nuclear
Energy report: Alternative energy