OCCI forum highlights role of financial policies in underpinning economic growth

Observer

18-03-2025

MUSCAT: The Oman Chamber of Commerce and Industry (OCCI) held on Monday, March 17, 2025, an insightful discussion on the role of financial policies in supporting sustainable economic growth and enhancing the business environment.
The event, held as part of the Chamber's Ramadhan Evening series, was titled 'Taxes and Their Impact on Economic Development.' It was attended by a host of prominent figures, including Dr Said bin Mohammed al Saqri, Minister of Economy, Shaikh Faisal bin Abdullah al Rawas, Chairman of Oman Chamber of Commerce and Industry (OCCI).
Shaikh Faisal began the evening with a keynote address, emphasising the importance of taxes as a key financial tool for financing public expenditure. He explained that taxes are not merely a source of revenue but are also pivotal in driving economic development and guiding the economy towards growth and stability.
He emphasised that directing tax revenues to infrastructure and services would boost the business environment, living standards and investment. However, he warned that imbalanced tax policies could reduce incentives for work and investment, leading to capital flight and economic slowdown. Over-taxation could also drive investments to countries with lower rates, while tax evasion would hinder development project financing.
Shaikh Faisal further highlighted that fair and equitable tax policies encourage compliance and enhance the business climate, which is crucial for sustainable economic growth.
HH Dr Adham bin Turki al Said, Chairman of the Chamber's Economic Committee, presented a paper on the impact of financial and tax policies in Oman.
HH Dr Adham outlined the country's financial policy framework, which includes development and industrial strategies. These strategies have seen the government invest in infrastructure, establish free zones to attract foreign investment and promote non-oil sectors, all while controlling public spending.
HH Dr Adham discussed the impact of tax policies on economic growth and investment, noting increased foreign investment and diversification. However, he highlighted challenges like global oil price fluctuations, which make growth fragile. He called for a clear, balanced financial and tax policy that considers both economic and financial dynamics.