gulfnews : Oman's economic performance is laudable

Numerous indications point to success of Omani authorities in coping with local challenges on the one hand and benefiting from international developments on the other. Positive news includes growing budgetary spending without sparking inflation as well as a steady rise in oil output.

Oman's oil output amounted to 882,000 barrels per day (bpd) in July, the highest in many years. As such, oil output averaged some 878,000 bpd at the start of 2011, up from 858,000 bpd in the corresponding period in 2010. Yet oil production capacity stood at 760,000 bpd in 2008.

Like other Gulf Cooperation Council (GCC) countries, the petroleum sector accounts for three quarters of Oman's treasury income, divided between 62 per cent for oil and 13 per cent for gas. Still, Oman is not a member of the Organisation of Petroleum Exporting Countries (Opec) and thus is technically free to raise output levels when deemed necessary. However, the country is noted for adopting conservative policies across the board, oil not excluded.

* username: rupertbu