Latest news with #EleventhFive-YearPlan
Observer
5 days ago
- Business
- Observer
IMF praises Oman's economic progress and fiscal discipline
MUSCAT: A visiting International Monetary Fund (IMF) mission has concluded its preliminary meetings with the Government of Oman as part of the 2025 Article IV Consultation. The discussions focused on recent economic, financial, and monetary developments, as well as structural reform progress in the Sultanate of Oman. The IMF commended Oman's economic performance, noting that real GDP grew by 1.7% in 2024—up from 1.2% in 2023—thanks to robust non-oil sector growth, particularly in manufacturing, logistics, tourism, and renewable energy. Growth is forecast to accelerate to 2.4% in 2025 and 3.7% in 2026, supported by the easing of OPEC+ production caps and ongoing economic diversification. Inflation remains well contained at just 0.9% year-on-year for the first four months of 2025. The Fund lauded Oman's prudent fiscal policy, which delivered a 3.3% budget surplus in 2024 despite rising infrastructure and public service investments. However, the surplus is projected to narrow to 0.5% of GDP in 2025 and 2026 due to lower oil prices, before improving again in the medium term. Public debt fell to 35.5% of GDP in 2024. The IMF highlighted Oman's continued fiscal reform momentum and targeted investments in priority sectors, praising the Oman Investment Authority's role in enhancing governance of state-owned enterprises. Oman's banking sector was described as strong, with high asset quality, solid capital and liquidity buffers, and sustained profitability. Credit to the private sector continues to expand, fueled by growing deposits and healthy net foreign assets. The Central Bank of Oman received praise for improving liquidity management and promoting financial sector development and inclusion. The external sector also showed strength, posting a current account surplus of 2.2% of GDP in 2024. A temporary deficit is expected in 2025–2026 due to softer oil prices and non-oil exports, but a return to surplus is anticipated as oil output rises. The IMF also welcomed progress in structural reforms, including tax system modernization and the Future Fund's success in attracting private investment. Ongoing investments in green hydrogen and renewables were also highlighted as key pillars of the Eleventh Five-Year Plan (2026–2030) and Oman Vision 2040. The Central Bank of Oman expressed appreciation for the IMF's assessment and reaffirmed its commitment to financial stability and a sustainable, diversified economy. — ONA
Observer
19-05-2025
- Business
- Observer
Oman prepares framework for 2026 budget and 11th five-year plan
MUSCAT: The Ministry of Finance held a preparatory meeting today to set the stage for the state's general budget for 2026 and the financial framework of the Eleventh Five-Year Development Plan (2026–2030). The meeting, aligned with Financial Circular No. 1/2025, brought together representatives from 70 government units to ensure a unified approach to fiscal planning. The session aimed to clarify the budget preparation guidelines and development project approval rules outlined in the circular. It also stressed the importance of aligning financial allocations with annual plans, adhering to performance indicators, controlling public expenditure, and reinforcing program and performance-based budgeting. Abdullah bin Salem al Harthy, Under-Secretary of the Ministry of Finance, highlighted the positive impact of the government's fiscal measures since 2020, supported by higher oil prices. He noted improvements in key economic indicators, including reduced public debt and restored credit ratings. However, he cautioned that these gains remain fragile due to global economic uncertainty and ongoing geopolitical tensions, which continue to affect energy and commodity markets. Al Harthy stressed the need for continued collaboration across government entities to manage public finances effectively, boost non-oil revenues, and enhance spending efficiency. Mohammed bin Ahmed al Barashdi, Director General of the General Directorate of Budget, emphasized the Ministry's commitment to fostering integration and coordination among government units. He said the meeting was essential to ensure accurate budget estimates for 2026 and alignment with the priorities of the Eleventh Five-Year Plan in line with the government's fiscal reform agenda. – ONA
Times of Oman
19-03-2025
- Business
- Times of Oman
Shura Council to host Minister of Heritage and Tourism on March 24
Muscat: The Shura Council is set to host Salem Mohammed Al Mahrouqi, Minister of Heritage and Tourism on March 24 for statement before the Council. This comes as part of the series of ministerial statements approved for the second regular session of the tenth term. This was announced by Ahmed Mohammed Al Nadabi, Secretary-General of the Shura Council, who stated that the Council will convene its eighth regular session for the second annual term (2024-2025) of the tenth legislative period (2023-2027). The session will be dedicated to discussing the statement of the Minister of Heritage and Tourism, in accordance with Article (69) of the Oman Council Law, which stipulates that: 'At the beginning of each annual session, the Shura Council determines the program of ministerial statements and their discussion themes, based on a joint proposal from the Council's Bureau and the heads of the standing committees. The Chairman of the Council shall inform the government of this program, specifying the elements and themes that each statement must include, according to the subject or sector it pertains to.' The Secretary-General explained that the statement will cover six main themes identified by the Council earlier. The first theme will examine the ministry's plans and programmes implemented in the heritage and tourism sectors, their alignment with Oman Vision 2040 priorities, and the development plan projects for these sectors. It will also present the ministry's vision for integrating future programs and projects to enhance the heritage and tourism sectors within the Eleventh Five-Year Plan. The second theme of the ministerial statement will analyse the tourism balance within the current five-year plan and the projections for the upcoming plan. Contribution to GDP This includes assessing tourism expenditures across various aspects, evaluating the impact of domestic tourism on the overall sector's contribution to GDP, and examining spending patterns and growth prospects. Additionally, it will assess the status of integrated tourism complexes, their investment value, job creation potential, and interconnections with other economic sectors. The third theme will focus on managing the heritage sector, addressing the administration of tangible Omani cultural heritage (both public and private) and the ministry's efforts to ensure its sustainability. It will also discuss the management of historical and archaeological sites, including documentation, preservation, and maintenance. Furthermore, the theme will examine the contribution of the heritage sector to GDP, its future growth, and the ministry's vision for developing the sector in light of existing opportunities, challenges, investment prospects, and optimal employment mechanisms. According to Al Nadabi, the fourth theme will explore the management of the tourism sector, emphasising its contribution to GDP and highlighting key tourism projects aimed at maximising the sector's economic impact. Additionally, it will address the role of tourism-related legislation in enhancing the economic returns from the sector. The fifth theme will focus on human resources in the heritage and tourism sectors. It will discuss the ministry's efforts to assess the supply and demand for national labour, improve Omanisation rates, and enhance workforce development. Moreover, it will examine workforce training programs and initiatives to create job opportunities in the two sectors. His Excellency the Secretary-General further stated that the sixth theme will cover coordination, development, and investment prospects. It will review the ministry's collaboration with the Oman Tourism Development Company (Omran) in advancing the tourism sector, as well as its role in enabling the private sector to invest in heritage and tourism sites. Additionally, it will highlight the ministry's initiatives to strengthen partnerships with SMEs and its policies and programs for maximising local content in coordination with various stakeholders. He also noted that the session will be held publicly, with media representatives in attendance, to ensure transparency and promote community engagement.
Zawya
03-03-2025
- Business
- Zawya
Oman: 11th 5-year plan to broaden economic diversification
Economic diversification is the cornerstone of Oman's economic strategy, and its benefits have begun to materialise. Oman is preparing to launch its Eleventh Five-Year Plan (2026-2030), a pivotal milestone in the journey towards achieving the goals of Oman Vision 2040. This plan follows the Tenth Five-Year Plan, which laid the foundation for economic recovery after challenges posed by the COVID-19 pandemic and declining oil prices. In this article, we provide an objective and critical analysis of the Tenth Plan's achievements and challenges, examine the preparation process and inclusiveness of the upcoming plan, and discuss the impact of economic diversification on GDP and employment opportunities. Additionally, we will highlight the challenges and opportunities associated with implementing the new plan and conclude with recommendations to enhance its success. 10th Five-Year Plan: Success and Challenges The Tenth Five-Year Plan (2021-2025) achieved significant economic milestones despite difficult initial conditions. The GDP recorded a stronger-than-expected recovery, with economic growth exceeding targeted levels in the plan sectors. This growth helped maintain economic momentum despite a decline in oil sector contributions, underscoring the success of economic diversification strategies in reducing reliance on oil revenues. Regarding development initiatives, the Tenth Plan oversaw the implementation of numerous strategic programmes aligned with Oman Vision 2040's priorities. While several programmes were fully completed, others remain ongoing, and some were merged or canceled to adapt to evolving circumstances. The plan also witnessed developmental spending and a rise in allocated funds for projects. Global economic fluctuations—such as the COVID-19 pandemic, supply chain disruptions, and rising global inflation—placed pressure on the timely implementation of some projects. Furthermore, Oman's continued reliance on oil revenues remains a structural challenge; for example, a decline in oil production during certain periods led to a notable contraction in oil-related activities, highlighting the economy's vulnerability to energy market shifts. Creating sufficient job opportunities for Omani citizens remains a pressing issue, as workforce development and employment generation require continuous efforts. While economic conditions have improved, sustaining job creation and ensuring adequate employment opportunities for the country's growing youth population remain top priorities. 11th Plan's Preparation and Inclusiveness The Eleventh Five-Year Plan was designed with a high level of inclusiveness and community participation, ensuring alignment with Oman Vision 2040's economic priorities. The new plan identifies high-value economic sectors that contribute to economic diversification while achieving Oman's long-term vision. The planning process integrated multiple strategic, developmental, and special tracks, ensuring coherence between Oman Vision 2040's long-term strategy, five-year development plans, and annual national and sectoral plans. This holistic approach ensures that the plan remains aligned with the four pillars of Society and People, Economy and Development, Environmental Sustainability, and Governance and Institutional Performance—while fostering balanced growth across these areas. Economic diversification is the cornerstone of Oman's economic strategy, and its benefits have begun to materialise. A notable aspect of the Eleventh Plan's preparation was its emphasis on stakeholder participation. The Ministry of Economy announced that community engagement was a fundamental methodology in shaping the new plan. Numerous discussion sessions, brainstorming workshops, and stakeholder consultations were conduct extensive participation from government entities, private sector representatives, and civil society institutions. This participatory approach ensured that the plan reflected a shared vision between the government and development, enhancing its practicality and public support. By adopting an inclusive and integrated planning framework, the Eleventh Plan is well-positioned for effective implementation. GDP and Employment Economic diversification is the cornerstone of Oman's economic strategy, and its benefits have begun to materialize. The non-oil sector's contribution to GDP has steadily increased, supporting economic growth even during periods of weak oil sector performance. Data indicates that the average economic growth during the Tenth Plan exceeded the targeted growth rate, driven by robust none-oil activities. Key sectors such as manufacturing, tourism, and logistics have experienced notable growth, strengthening Oman's economic base. Regarding employment, economic diversification has begun to positively impact job creation by expanding workforce opportunities across various industries. Statistics from the Ministry of Economy indicate that employment in the private sector grew faster than government sector employment by the end of 2022, signifying a shift towards private-sector-led job creation. This reflects the success of policies aimed at empowering the private sector to become the primary driver of employment. Additionally, the number of small and medium enterprises (SMEs) increased by approximately 46% between 2019 and 2022, indicating a growing entrepreneurial ecosystem and a flourishing startup environment. This SME growth enhances job creation prospects and strengthens economic diversification by broadening the range of business activities in Oman. Diversification efforts extend beyond traditional industries to high-potential sectors, such as food security and agri-business. The Ministry of Economy highlights promising investment opportunities in food security projects, particularly in Al Najd and Duqm's cold chain logistics projects, which could serve as sustainable employment sources. Additionally, Oman is focusing on transformational industries, such as renewable energy, hydrogen production, and high-value-added manufacturing, which have been prioritized in the Eleventh Plan as long-term economic drivers. Challenges and Opportunities As Oman transitions to the Eleventh Five-Year Plan, several challenges must be addressed to ensure successful implementation. A primary challenge is sustaining economic diversification momentum. Despite progress, the oil sector remains the dominant revenue source, making Oman susceptible to global energy price fluctuations. To mitigate this dependency, non-oil sector contributions must be further expanded, with a focus on improving productivity and competitiveness. Another key challenge is maintaining a steady pace of job creation to meet the needs of the growing workforce. As more Omanis enter the labour market annually, the government must attract quality investments that generate sufficient employment opportunities. This requires aligning education and training programmes with emerging industries to ensure that Oman's youth are equipped with the necessary skills. Additionally, global economic uncertainties—including slowing economic growth in key markets, supply chain disruptions, and rising financing costs—may impact foreign direct investment inflows. Strong institutional coordination and effective governance will be critical to overcoming these external challenges and ensuring smooth implementation of development projects. On the other hand, the Eleventh Plan presents significant opportunities, particularly in emerging economic sectors such as green energy and hydrogen production, which Oman is actively developing. The diversification strategy also includes enhancing food security and industrial development, as well as positioning Oman as a regional logistics hub through integrated port, airport, and road infrastructure. Furthermore, strengthening public-private partnerships and foreign investment in priority sectors will unlock new growth avenues and accelerate economic transformation. To enhance the successful implementation of the Eleventh Five-Year Plan, the following recommendations are proposed: • Strengthen execution and governance mechanisms by ensuring rigorous project tracking, clear key performance indicators (KPIs), and periodic evaluations. • Empower the private sector through regulatory reforms and investment incentives to boost foreign and domestic investments in targeted sectors. • Align education and workforce development with emerging industries to equip Omanis with future-ready skills. • Maintain financial stability by diversifying government revenue sources and adopting prudent fiscal policies. • Expand economic diversification initiatives by sustaining SME growth, developing high-value industries, and capitalizing on Oman's geographical advantages. Conclusion The Eleventh Five-Year Plan represents a crucial step in Oman's economic transformation. While the Tenth Plan successfully set the foundation for diversification and recovery, the next phase must build upon its achievements and address existing challenges. Oman's strategic planning, commitment to economic reforms, and emphasis on stakeholder collaboration create a strong foundation for success. However, translating plans into tangible results will require efficient execution, proactive governance, and continuous innovation. If properly implemented, the Eleventh Plan will pave the way for a more diversified, sustainable, and resilient economy, reinforcing Oman's long-term vision for prosperity. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
03-03-2025
- Business
- Observer
Opinion- 11th 5-year plan to broaden economic diversification
Oman is preparing to launch its Eleventh Five-Year Plan (2026-2030), a pivotal milestone in the journey towards achieving the goals of Oman Vision 2040. This plan follows the Tenth Five-Year Plan, which laid the foundation for economic recovery after challenges posed by the COVID-19 pandemic and declining oil prices. In this article, we provide an objective and critical analysis of the Tenth Plan's achievements and challenges, examine the preparation process and inclusiveness of the upcoming plan, and discuss the impact of economic diversification on GDP and employment opportunities. Additionally, we will highlight the challenges and opportunities associated with implementing the new plan and conclude with recommendations to enhance its success. 10th Five-Year Plan: Success and Challenges The Tenth Five-Year Plan (2021-2025) achieved significant economic milestones despite difficult initial conditions. The GDP recorded a stronger-than-expected recovery, with economic growth exceeding targeted levels in the plan sectors. This growth helped maintain economic momentum despite a decline in oil sector contributions, underscoring the success of economic diversification strategies in reducing reliance on oil revenues. Regarding development initiatives, the Tenth Plan oversaw the implementation of numerous strategic programmes aligned with Oman Vision 2040's priorities. While several programmes were fully completed, others remain ongoing, and some were merged or canceled to adapt to evolving circumstances. The plan also witnessed developmental spending and a rise in allocated funds for projects. Global economic fluctuations—such as the COVID-19 pandemic, supply chain disruptions, and rising global inflation—placed pressure on the timely implementation of some projects. Furthermore, Oman's continued reliance on oil revenues remains a structural challenge; for example, a decline in oil production during certain periods led to a notable contraction in oil-related activities, highlighting the economy's vulnerability to energy market shifts. Creating sufficient job opportunities for Omani citizens remains a pressing issue, as workforce development and employment generation require continuous efforts. While economic conditions have improved, sustaining job creation and ensuring adequate employment opportunities for the country's growing youth population remain top priorities. 11th Plan's Preparation and Inclusiveness The Eleventh Five-Year Plan was designed with a high level of inclusiveness and community participation, ensuring alignment with Oman Vision 2040's economic priorities. The new plan identifies high-value economic sectors that contribute to economic diversification while achieving Oman's long-term vision. The planning process integrated multiple strategic, developmental, and special tracks, ensuring coherence between Oman Vision 2040's long-term strategy, five-year development plans, and annual national and sectoral plans. This holistic approach ensures that the plan remains aligned with the four pillars of Society and People, Economy and Development, Environmental Sustainability, and Governance and Institutional Performance—while fostering balanced growth across these areas. Economic diversification is the cornerstone of Oman's economic strategy, and its benefits have begun to materialise. A notable aspect of the Eleventh Plan's preparation was its emphasis on stakeholder participation. The Ministry of Economy announced that community engagement was a fundamental methodology in shaping the new plan. Numerous discussion sessions, brainstorming workshops, and stakeholder consultations were conduct extensive participation from government entities, private sector representatives, and civil society institutions. This participatory approach ensured that the plan reflected a shared vision between the government and development, enhancing its practicality and public support. By adopting an inclusive and integrated planning framework, the Eleventh Plan is well-positioned for effective implementation. GDP and Employment Economic diversification is the cornerstone of Oman's economic strategy, and its benefits have begun to materialize. The non-oil sector's contribution to GDP has steadily increased, supporting economic growth even during periods of weak oil sector performance. Data indicates that the average economic growth during the Tenth Plan exceeded the targeted growth rate, driven by robust none-oil activities. Key sectors such as manufacturing, tourism, and logistics have experienced notable growth, strengthening Oman's economic base. Regarding employment, economic diversification has begun to positively impact job creation by expanding workforce opportunities across various industries. Statistics from the Ministry of Economy indicate that employment in the private sector grew faster than government sector employment by the end of 2022, signifying a shift towards private-sector-led job creation. This reflects the success of policies aimed at empowering the private sector to become the primary driver of employment. Additionally, the number of small and medium enterprises (SMEs) increased by approximately 46% between 2019 and 2022, indicating a growing entrepreneurial ecosystem and a flourishing startup environment. This SME growth enhances job creation prospects and strengthens economic diversification by broadening the range of business activities in Oman. Diversification efforts extend beyond traditional industries to high-potential sectors, such as food security and agri-business. The Ministry of Economy highlights promising investment opportunities in food security projects, particularly in Al Najd and Duqm's cold chain logistics projects, which could serve as sustainable employment sources. Additionally, Oman is focusing on transformational industries, such as renewable energy, hydrogen production, and high-value-added manufacturing, which have been prioritized in the Eleventh Plan as long-term economic drivers. Challenges and Opportunities As Oman transitions to the Eleventh Five-Year Plan, several challenges must be addressed to ensure successful implementation. A primary challenge is sustaining economic diversification momentum. Despite progress, the oil sector remains the dominant revenue source, making Oman susceptible to global energy price fluctuations. To mitigate this dependency, non-oil sector contributions must be further expanded, with a focus on improving productivity and competitiveness. Another key challenge is maintaining a steady pace of job creation to meet the needs of the growing workforce. As more Omanis enter the labour market annually, the government must attract quality investments that generate sufficient employment opportunities. This requires aligning education and training programmes with emerging industries to ensure that Oman's youth are equipped with the necessary skills. Additionally, global economic uncertainties—including slowing economic growth in key markets, supply chain disruptions, and rising financing costs—may impact foreign direct investment inflows. Strong institutional coordination and effective governance will be critical to overcoming these external challenges and ensuring smooth implementation of development projects. On the other hand, the Eleventh Plan presents significant opportunities, particularly in emerging economic sectors such as green energy and hydrogen production, which Oman is actively developing. The diversification strategy also includes enhancing food security and industrial development, as well as positioning Oman as a regional logistics hub through integrated port, airport, and road infrastructure. Furthermore, strengthening public-private partnerships and foreign investment in priority sectors will unlock new growth avenues and accelerate economic transformation. To enhance the successful implementation of the Eleventh Five-Year Plan, the following recommendations are proposed: • Strengthen execution and governance mechanisms by ensuring rigorous project tracking, clear key performance indicators (KPIs), and periodic evaluations. • Empower the private sector through regulatory reforms and investment incentives to boost foreign and domestic investments in targeted sectors. • Align education and workforce development with emerging industries to equip Omanis with future-ready skills. • Maintain financial stability by diversifying government revenue sources and adopting prudent fiscal policies. • Expand economic diversification initiatives by sustaining SME growth, developing high-value industries, and capitalizing on Oman's geographical advantages. Conclusion The Eleventh Five-Year Plan represents a crucial step in Oman's economic transformation. While the Tenth Plan successfully set the foundation for diversification and recovery, the next phase must build upon its achievements and address existing challenges. Oman's strategic planning, commitment to economic reforms, and emphasis on stakeholder collaboration create a strong foundation for success. However, translating plans into tangible results will require efficient execution, proactive governance, and continuous innovation. If properly implemented, the Eleventh Plan will pave the way for a more diversified, sustainable, and resilient economy, reinforcing Oman's long-term vision for prosperity.
