Oman’s economy is on the up thanks to higher oil prices. But high unemployment and the continued lackluster performance of the non-hydrocarbons sector remain fundamental problems ahead of a looming royal succession.

Omani crude prices have averaged $66.44/B for the year to date, up $15.45/B (30%) year-on-year. Government revenues are thus set for a substantial boost this year, whatever happens in the non-oil economy, and over the half of 2018 Oman’s year-on-year deficit halved (...