Oman allocated over 25% of 2024 budget to defence spending

Oman spent more than a quarter of its budget on defence and security in the first ten months of 2024, government data shows, maintaining one of the highest military spending rates in the region relative to GDP.

According to Arabian Gulf Business Insight (AGBI), the sultanate spent $6.5 billion (OMR2.5bn) on defence and security, accounting for just under 26 per cent of the country’s total expenditure, according to official data.

The figures, published in the Finance Ministry’s latest Monthly Statistical Bulletin, show that total government spending for the period stood at $25.2bn (OMR9.7bn), with defence allocations rising slightly from the $6.2bn (OMR2.4bn) recorded in the same period in 2023.

Defence and security also made up 36 per cent of current expenditure — which includes civil ministries and public debt — totalling $17.9bn (OMR6.9bn) over the ten-month period.

With full-year GDP estimated at $99.6bn (OMR38.3bn), military spending accounted for 6.5 per cent of economic output. Oman relies heavily on oil and gas revenues, and has ranked consistently among the world’s biggest defence spenders relative to GDP. The Arab Monetary Fund notes that military and security allocations have exceeded 30 per cent of current expenditure for over two decades.

Saudi Arabia, Qatar and the UAE also maintain high defence budgets, according to the Abu Dhabi-based fund.

Despite the large defence outlay, Oman posted a budget surplus of $1.4bn (OMR530m) from January to October 2024, buoyed by an 11 per cent rise in oil revenues, which reached just over $15.6bn (OMR6bn).

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