(Bloomberg) -- Oman recorded a budget surplus of 784 million rials ($2 billion) in the first half, driven by higher sales for oil and natural gas.  

Revenue rose more than 54% in the second quarter to about 6.7 billion rials, while total spending increased by 8.6% to 5.9 billion, according to the Finance Ministry. Crude oil revenue stood at 3.19 billion rials, while the equivalent figure for gas was 1.73 billion.

Oman has implemented a series of reforms to balance its budget and lower its debt, including the introduction of value-added tax last year. It plans to use the windfall from surging oil prices to trim its public debt and boost spending on certain projects.

The nation also plans to “repurchase some sovereign bonds, repay high-cost loans and issue local sukuk for trading on the stock exchange” to cut its debt, it added in the statement.

Read More: Oman to Use Oil Windfall to Prepay $1.33 Billion Loans in July

Oil’s surge on the back of Russia’s invasion of Ukraine has pushed crude above the break-even level for almost all the Middle East’s producers, raising the prospect of significant budget surpluses for even the weakest economies if prices remain high.  

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