Oman set to usher in new phase of economic growth

MUSCAT: The Sultanate of Oman is poised to embark on a new phase of economic development with the private sector set to play a key role in this process.

According to Dr Said bin Mohammed al Saqri, Minister of Economy, this anticipated uptrend in economic growth promises to raise GDP contributions from various economic sectors and enhance their appeal for Omani youth employment. In particular, the private sector is projected to drive this growth and will become a significant job creator than the government, he noted.

Dr Al Saqri made the comments during a ‘dialogue’ with Omani youth on Thursday. The dialogue focused on the ‘Reality of the Omani Economy and its Future Outlook’.

The minister stressed in this regard that a dedicated unit at the ministry is now assessing the performance of individual ministries and government agencies to ensure they are in full alignment with the needs of the local population.

In his talk, Dr Al Saqri referred to a raft of new laws that the Omani government had enacted in recent years that would help strengthen the investment and business environment in the Sultanate of Oman. They include the Public Private Partnership (PPP) Law, Bankruptcy Law, new Commercial Law, new Labour Law, and the Special Economic Zones and Free Zones law – all of which will enable the private sector to play a vital role in the next phase of the country’s economic growth, he said.

Evidence of Oman’s growing investment appeal is demonstrated by the increase in foreign investment inflows during 2021, he said. This confirms the strong interest of foreign companies to invest in various sectors in the Sultanate of Oman in light of its favourable local investment environment, he noted, adding that Oman Investment Authority (OIA) and the private sector are expected to make significant investments during the current year.

Dr Al Saqri added that the government is working on several programmes, including an In-Country Value (ICV) initiative, to help ensure that SMEs benefit from government projects. At the same time, a ministerial committee supervised by the Ministry of Commerce, Industry and Investment Promotion, is continuing to exploring new ways to enhance the investment appeal of the local business environment, he said.

Commenting on major economic projects, he said the next phase of the Duqm Special Economic Zone’s development will attract a number of large and promising projects. They include major investments in renewable energy, alternative clean energy, green hydrogen and other projects that reduce dependence on oil revenues.

In concluding, Dr Al Saqri stressed that the development of the governorates is a strategic priority of the 10th Five Year Plan. A sum of RO 20 million has been earmarked annually for development projects in each governorate. To this end, the ministry held several workshops with the offices of local governors to plan projects that could be implemented with this new funding.

(With inputs from ONA)