Muscat: Oman had a state budget surplus of 1.123 billion riyals ($2.92 billion) for the nine months ended September, the finance ministry announced on Monday. Higher oil prices have helped exporters in the region's public finances.

Following rising oil prices and production, the Gulf state reported a 43.4 percent year-on-year increase in public revenue to about 10.6 billion rial as of the end of September, while spending for the period exceeded 9.4 billion rial .

Despite having committed to a program of fiscal restraint and structural reforms in recent years to reduce the mounting deficit, the ministry reported in a monthly bulletin that spending rose 12.5 per cent by the end of September compared to the previous year.

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The surplus represented a turnaround, from a deficit of 1.03 billion riyals in the same period of 2021.

With an average oil price of $94 per barrel, up from $57 in the same period last year, net oil revenue increased by 37% in the first nine months of 2022, while daily oil production averaged 1.056 million barrels from 957,000 barrels .

Crude oil and condensate production rose 10% to 289.8 million barrels in the third quarter, while oil exports rose 15% to 242.8 million barrels year-on-year, according to a separate statement from the Ministry of Energy and Minerals.

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The most recent data showed that China and India receive more than 90% of Oman's oil exports.

Oman, one of the weakest economies in the Gulf, achieved a budget surplus in the first half of 2022, releasing pressure on the government's finances and increasing its ability to repay debt.

Despite efforts to diversify into industries such as tourism and renewable energy, the economy relies heavily on oil exports for income.

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The IMF predicted Oman's GDP would grow by 4.4 percent in 2022 and decline by 4.1 percent the following year, but it also issued a warning about potential risks from global challenges.