JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013
MUSCAT SECURITIES MARKET
CAPITAL MARKET DEVELOPMENT
AND ECONOMIC OUTLOOK
The Omani national economy continued its
good performance in the year 2011 in spite
of the negative developments of the global
economy as a result of lowering the credit rating
of the United States and the sovereign debt
crisis, which hit some European economies
and had spillover effects on a number of world
economies. The strong performance of the
Omani economy is attributed to the realistic
and flexible economic policies adopted by the
Sultanate as well as the increase in the rates of
the oil production, the remarkable improvement
in oil prices and the expansionary fiscal and
monetary policies adopted by the Government
to enable the economy to achieve stability and
growth.
Leading amongst the indicators of the stability
and growth of the Omani economy during 2011
were the overall positive results, which include
a significant growth rate of 7% exceeding that
of 2010 which amounted to 6%. Moreover, the
balance of trade of the Sultanate achieved
remarkable growth of 34% in 2011 compared
to 32% in 2010. However, despite the increased
public expenditure during 2011, inflation rate
remained at the level of 3.6%, which is within the
targeted limit of 4%.
Regarding the expectations of the Omani
economy for 2012, it should be noted that in
light of the wise economic and fiscal policies
that support the growth and stability of the
national economy, the Sultanate of Oman has
increased the general expenditure approved
in the budget to about RO 10 billion, with
an increase of RO 800 million or 9% over
the revised expenditure of the previous year
2011. Current expenditure is estimated at RO
6.4 billion, which constitutes 64% of the total
general expenditure around 2.7 billion of which
are investment spending, representing 27% of
the total general expenditure.
The general revenues of the State for the year
2012 were estimated by about RO 8.8 billion
against RO 7.3 billion in the budget of the
fiscal year 2011, with an increase of RO 1.5
billion, i.e. 21 per cent compared to 2011. Oil
and gas revenues constitute 81 per cent of the
total revenues, whereas the current and capital
revenues constitute 19 per cent thereof.
The oil revenues were calculated on the basis
of average price US$ 75 per barrel and average
daily production of 915 thousand barrel per day.
As regards to the budget deficit, it is estimated
to amount to RO 1.2 billion, i.e. 5 per cent of
the Gross Domestic Production, which is a safe
percentage. This deficit will be covered through
the issuance of development bonds in the
domestic market amounting to RO 200 million.
It will also be covered from the real revenues of
oil prices because the current prices are higher
than those upon which basis the state revenues
are calculated. In case this is not realized, the
deficit shall be covered from the state general
reserve.
Key Information Contacts
Ministry of National Economy www.moneoman.gov.om
Capital Market Authority www.cma-oman.gov.om
Oman Chamber of Commerce and Industry www.cbo-oman.org
Financial Corporation www.fincorp.org
National Bank of Oman www.nbo.co.om
CONTACT INFORMATION
Contact Name Mr. Asal Farsi E-mail asalfarsi@msm.gov.om Website www.msm.gov.om
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