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Five Year Spending in Oman to Reach $78 Billion

Oman : 04 January 2011

Oman has an economic plan for the next five years, with a total of RO 30 billion (or $77.92 billion) set to be spent. Around RO 6 billion is earmarked for the oil industries according to recent comments made by Oman’s minister of economy.

The spending plan, which stretches from 2011 until 2015, includes a majority of the funds allocated for education, hospitals and roads.

National Minister of the Economy Ahmad Mekki reported to local media that 30 billion Rials are expected to be spent, a boost of 113 percent over the last five-year economic plan.

Oman is a non-Opec oil producing state and expects to average 897,000 bpd (barrel per day) of output in the course of the plan.  Recently the oil minister for Oman stated that production at the close of November was 875,000 bpd.

Mekki reported that the five year economic plan was based around oil prices averaging $59 per barrel.  Last Friday the price of US crude closed the year in New York at $91.38. This was an increase of 15 percent on the year.

Although Oman only has small production levels, the crude from this state is used for setting crude export prices of approximately 12 million bpd that is shipped to Asia from the biggest global exporters found in the Gulf.

Minister Mekki noted that the five year plan accounted for 4 percent inflation on average.  In October the annual inflation for Oman was 4.2 percent. A recent Reuters poll indicated that the expectation by analysts is that all of the Gulf states will see inflation rise through 2011, with the exception of Saudi Arabia.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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