Oman’s gross domestic product (GDP) at current prices increased by 18.9 per cent to RO 7,371 million during the first quarter of 2012 from RO 6,198.6 million during the same period last year, according to statistics released by the Central Bank of Oman (CBO). While nominal GDP emanating from the petroleum sector posted a growth of 25.7 per cent, non-petroleum sector rose by 12.4 per cent during the first quarter.

The average rate of inflation for the Sultanate stood lower at 3.1 per cent during the first half of 2012 compared to 4 per cent a year ago. Regarding the fiscal situation, government revenues for the first half of 2012 increased by 35.4 per cent to RO 7,369.8 million compared to RO 5,443.3 million a year ago while total expenditure rose by 14 per cent to RO 5,763.4 million from RO 5,056.7 million during the same period in the previous year.

The overall surplus was RO 1,606.4 million at the end of June compared to a smaller surplus of RO 386.6 million witnessed during the first six months of 2011. Consistent with sustained recovery of the Omani economy, the monetary and banking indicators in Oman continued to be favourable in 2012. Total assets of commercial banks increased by 20.5 per cent to RO 19,698.3 million in June compared to RO 16,346.1 million in June 2011.

Cash on hand and deposits of commercial banks with the CBO stood higher at RO 1,112.7 million at the end of June 2012 compared to RO 931.7 million in June 2011. Total credit expanded by 19.4 per cent to RO 13,674.4 million at the end of June 2012 from RO 11,450.4 million a year ago. While credit to government declined by 23.4 per cent at the end of June 2012, credit to public enterprises and private sector improved remarkably by 22.1 per cent and 19.6 per cent, respectively.

Commercial banks’ overall investments in securities increased by 20.6 per cent to RO 2,190.9 million in June 2012 from RO 1,814.6 million a year ago. Of the total outstanding investments, commercial banks’ investments in CBO CDs decreased by 13.2 per cent to RO 1,010 million in June 2012 from RO 1,163 million a year ago. Investments in government development bonds (GDBs) increased by 63.8 per cent to RO 468 million in June 2012 compared to its level last year.

Commercial banks’ investments in foreign securities increased to RO 563.8 million in June 2012 from RO 220.6 million a year ago. On the liabilities side of the balance sheet, total deposits (rials plus foreign currency deposits) of commercial banks increased by 21.5 per cent to RO 13,544.9 million in June from RO 11,152.5 million in June 2011. Government deposits with commercial banks increased by 32.2 per cent to RO 3,737.3 million while deposits of public enterprises increased by 4.7 per cent to RO 869.6 million during the same period.

Private sector deposits with commercial banks increased by 18.3 per cent to RO 8,732.2 million in June from RO 7,381.7 million a year ago. The provisional figures on net profits of commercial banks stood higher at RO 154.6 million at the end of June compared to RO 119 million at the end of June 2011.