Ahead of the 2015 budget announcement, officials have said spending would be at around the same level as 2014 or marginally higher. Last year’s spending plan was set at RO13.5bn ($35.1bn), 5 per cent higher than in 2012.

Oman’s Minister for Financial Affairs Darwish al-Balushi has said cuts are likely in some areas, but spending will continue as planned on infrastructure projects as the country looks to diversify its economy and reduce its reliance on hydrocarbon revenues.

“Oman can afford to run a fiscal deficit, given its low levels of government debt at less than 10 per cent of GDP, but I won’t be surprised if we see some adjustment on the current spending side,” says Steffen Dyck, senior analyst and vice-president at Moody’s sovereign risk group.