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Observer
a day ago
- Business
- Observer
Oman Vision 2040 is a blueprint for sustainable growth: World Bank
From digital corridors to investment pipelines, Oman Vision 2040 is transforming the present for a stronger future, and symbolizes yet another chapter of strategic evolution that has characterized the country from prehistoric Majan to modern Oman, said the World Bank in its blogs. "Developed through extensive consultations with citizens, Vision 2040 enshrines a diversified and resilient economy less reliant on oil while fostering a globally integrated and prosperous society. What began under the leadership of the late Sultan Qaboos bin Said, with the careful planning of His Majesty Sultan Haitham bin Tarik, is a roadmap charting how Oman can adapt to changing economic conditions, shifting culture, and disrupting technology to steer Oman toward economic diversification, sustainability, and global competitiveness. Oman's steady progress under Vision 2040 offers a model for other emerging economies navigating uncertainty through long-term planning. It further guides Oman's increased global engagement and partnership with organizations like the World Bank Group," the blog said. Oman and the World Bank Group have enjoyed an active partnership for decades. This has led to working together on a range of areas aligned to Vision 2040, from national development plans and budget system modernization to transport and fisheries. A key focus right now is strengthening the investment climate to support private sector-led growth and job creation. The World Bank is bringing global knowledge and advice on best practices in business environment reforms tailored to the Omani context. IFC, the Bank Group's private sector arm, recently announced new investments to bolster the country's sustainable finance market and empower the private sector. MIGA, home of the World Bank Group Guarantee Platform, secured $1.2 billion in commercial financing of the infrastructure works for the Duqm Special Economic Zone. Central to Oman Vision 2040 is the imperative of economic diversification and building a knowledge, technology-driven economy. In practice, this means investing in digital infrastructure, encouraging R&D, and nurturing new industries. Major regulatory reforms have been rolled out to catalyze private-sector growth and foreign investment. For example, a new Foreign Capital Investment Law took effect in 2020, removing minimum capital requirements and allowing 100% foreign ownership in many sectors. Attracting foreign direct investment and strengthening the private sector are key components of the Vision, and these reforms unlock those opportunities. Oman is also leveraging its strategic geography to become a logistics and trade hub. Positioned outside the Strait of Hormuz on major global trade routes, it has prioritized modernizing ports, free zones, and airports. The development of Duqm – a vast special economic zone with a deep-sea port – and upgrades at Salalah and Sohar ports exemplify this push. Such investments aim to streamline the flow of goods and make Oman a vital link in global supply chains. Already, early results of the economic transformation are visible: non-oil sectors like construction, manufacturing, and transport are growing quickly. Maintaining this momentum will require sustained reform, and Oman's multi-pronged approach – from startup incubators to industrial free zones – is steadily transforming the economy. Sustainable development is an overarching principle, and Oman's fisheries sector is a standout success story for this agenda. Fisheries have evolved from a traditional, artisanal industry into a technology-enabled sector that contributes to diversification. The government, with World Bank support, crafted a Fisheries and Aquaculture Vision to create a profitable world-class sector that is ecologically sustainable and a net contributor to Oman's economy. The innovation shown in the Omani sustainable fisheries sector is yielding impressive results. The sector is expanding at near double-digit rates, with a recorded 7.5 percent sectoral growth in the first three quarters of 2024. This progress reinforces the country's ambition for economic diversification by setting a high bar, with the sector aiming to reach 10 percent annual growth and contribute 2 percent to the national GDP. Developing human capital is another key element of Oman's vision. A skilled, educated populace is the bedrock of competitiveness. Educational reforms are underway to align curricula with future labor market needs and improve quality at all levels. Oman's ambition includes ranking among the top 20 countries in global education indices by 2030, and top 10 by 2040. Investments in schools and universities over the past decades have dramatically expanded access. Now the focus is on boosting outcomes in science, technology, engineering, and math to nurture a knowledge economy. Equally important, Oman is fostering a culture of research and entrepreneurship. Through its Ministry of Higher Education, Research, and Innovation, new programs are funding research and the commercialization of ideas. Innovation parks and incubators have been launched in partnership with the private sector to mentor startups and turn student projects into marketable products. Aspiring young entrepreneurs receive support via financing initiatives and training programs, often co-sponsored by government and industry. Public-private partnerships are helping build this innovation ecosystem – for example, technology companies are collaborating with Omani colleges on coding academies, and energy firms are investing in technical training centers. These efforts are bearing fruit: a burgeoning startup scene is evident in Muscat, and the number of Omani tech SMEs is on the rise. In parallel, Oman has worked to make its labor market more flexible and dynamic, implementing new labor policies in 2023–24, adding more benefits for women, and encouraging private-sector hiring of Omanis. With 64% of the population under 30, all these measures aim to harness Oman's demographic dividend by equipping its youth with the skills and opportunities to innovate. To ensure the successful realization of Oman Vision 2040, a specialized entity—the Oman Vision 2040 Implementation Follow-up Unit—was established by Royal Decree 100/2020. Reporting directly to the Council of Ministers, the Unit plays a central role in monitoring the progress of the vision, facilitating coordination across sectors, addressing challenges, and providing strategic support to align efforts with the national vision. Looking forward to the next 15 years, there will be continued opportunities as well as challenges in realizing the vision. Successful implementation requires continued commitment, adaptability, and engagement with global partners. Oman's journey towards realizing its 2040 vision can serve as a valuable case study for other countries navigating uncertainties and striving for economic diversification, sustainability, and global integration.
Observer
3 days ago
- Business
- Observer
World Bank support focused on enhancing Oman's investment climate
MUSCAT: The World Bank's contribution to advancing Oman's ambitious Vision 2040—a long-term strategy for economic diversification, sustainability, and global integration—has been spotlighted in a recent article on the official blogging platform of the World Bank Group. Titled 'Oman Vision 2040: A Blueprint for Sustainable Growth and Global Integration,' the article is co-authored by Dr Khamis bin Saif Al Jabri, Chairman of the Oman Vision 2040 Implementation Follow-up Unit, and Ousmane Dione, Vice President for the Middle East and North Africa at the World Bank. According to the article, a decades-long partnership between Oman and the World Bank has made the institution a key ally in supporting the country's shift from an oil-reliant economy to a knowledge-based, globally competitive nation. The Bank's support aligns with strategic national goals outlined in Vision 2040, spanning multiple sectors. A central pillar of this collaboration is improving the investment climate to foster private sector-led growth. To that end, the World Bank has worked closely with Omani authorities to introduce global best practices in business environment reform, adapted to local needs. These efforts are producing results: foreign direct investment is on the rise, and the regulatory framework has improved. A notable milestone is the 2020 Foreign Capital Investment Law, which eliminated minimum capital requirements and opened numerous sectors to full foreign ownership. In parallel, the World Bank Group's private sector arm—the International Finance Corporation (IFC)—has expanded its engagement in Oman by promoting sustainable finance and supporting private sector development. The Multilateral Investment Guarantee Agency (MIGA), another World Bank Group institution, played a key role in mobilizing $1.2 billion in commercial financing for infrastructure projects in the Duqm Special Economic Zone—a lynchpin in Oman's logistics and industrial diversification strategy. The partnership also extends to human capital development, a core objective of Vision 2040. The World Bank has supported education reform, helping Oman align its curriculum with future labor market demands. Investments in STEM education, vocational training, and research are aimed at boosting Oman's global education rankings, with goals to reach the top 20 by 2030 and top 10 by 2040. Sustainable development is another area of impactful collaboration. In the fisheries sector, the World Bank has helped craft a national strategy to modernize the industry from traditional fishing to a high-tech, export-driven model. This transformation is already delivering results, with the sector growing by 7.5 per cent in the first three quarters of 2024 and targeting 10 per cent annual growth, significantly contributing to Oman's non-oil GDP. The World Bank is also supporting Oman's efforts to build an entrepreneurial ecosystem that empowers youth. Initiatives such as innovation hubs, startup incubators, and public-private partnerships are helping unlock the potential of the nation's young population—64 per cent of whom are under 30. Targeted support for tech startups and workforce reforms are seen as vital steps toward leveraging this demographic advantage. Looking ahead, the road to 2040 presents both opportunities and challenges. The authors emphasize that realizing Vision 2040 will require sustained commitment, adaptability, and continued engagement with international partners. Oman's journey can serve as a model for other nations seeking to navigate uncertainty while pursuing economic diversification, sustainability, and global integration, the authors stressed.
Muscat Daily
24-05-2025
- Business
- Muscat Daily
Oman's action on hidden trade enters new phase
Muscat – The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) is intensifying efforts to combat hidden trade practices as part of a broader strategy to improve Oman's business climate and attract long-term investment. MoCIIP announced it will soon launch nationwide awareness campaigns targeting these practices, following a meeting of the National Team to Combat Hidden Trade held on Thursday. The team, established under a ministerial decision (No 412/2023), reviewed progress from the first phase of a commercial registration audit. Officials said the audit uncovered several violations, particularly by entities operating in sectors previously restricted to foreign investors. 'The results reflect a clear commitment to addressing these illegal practices that negatively impact the business environment in the sultanate,' the ministry said in a statement. Hidden trade typically involves foreign individuals or entities operating businesses through local intermediaries without proper licensing or legal oversight. Nasra bint Sultan al Habsi Nasra bint Sultan al Habsi, Director General of Commerce and head of the national team, said the success of the first phase demonstrated the importance of joint efforts between government and private entities. 'The second phase focuses on developing oversight methodologies and expanding the scope of auditing to include the largest number of governorates, while involving all relevant sectors in these national efforts,' she said. She added that the next phase will also include awareness campaigns to inform the public and business community about the risks posed by hidden trade, including its negative impact on competitiveness and investor confidence. MoCIIP's plan includes stricter enforcement of the Foreign Capital Investment Law, outlining conditions, licensing requirements, and procedures for foreign entities to legally operate in Oman. The national team includes representatives from the Ministry of Labour, the Government Communication Centre at the Ministry of Information, the Tax Authority, the Central Bank of Oman, the Royal Oman Police, the Public Authority for Consumer Protection, and the Authority for Small and Medium Enterprises Development. The ministry said the goal is to create a fair and competitive commercial environment that protects consumer rights and supports both local and foreign investors.
Observer
22-05-2025
- Business
- Observer
Oman advances efforts to combat concealed trade
ONA:The National Team for Combating Concealed Trade held its second meeting yesterday, May 22, at the Ministry of Commerce, Industry, and Investment Promotion in Muscat to review the results of the initial audit phase on commercial registrations. The session presented findings from a detailed desk audit, revealing notable progress in identifying unauthorized commercial activities, especially those restricted for foreign investors. Officials described these results as a clear sign of Oman's commitment to tackling illegal practices that harm the business environment. The meeting focused on improving inspection procedures and ensuring strict compliance with laws to prevent illicit trade activities. The team reiterated its collaboration with government entities to implement a comprehensive strategy that fosters a transparent and competitive business climate supporting local and foreign investment. Nosra bint Sultan al Habsiya, Director-General of Commerce and Chairperson of the National Team, highlighted the importance of enhanced coordination between government agencies and the private sector to detect trade violations. She outlined plans to develop monitoring tools and launch joint awareness campaigns on the risks of concealed trade and its effect on market competitiveness. Mohammed bin Salem al Hashmi, Director of the Commercial Establishments Control Department and Head of the technical team, said the next phase will focus on refining audit methods and expanding inspections to more governorates with the involvement of all relevant sectors. This ministerial decision is part of broader efforts to create a conducive business environment by streamlining foreign company registrations and setting clear rules for approvals and permits, in line with the Foreign Capital Investment Law. The National Team includes representatives from ministries and authorities such as Commerce, Labour, Information, Taxation, the Central Bank, Royal Oman Police, Consumer Protection Authority, and Small and Medium Enterprises Development Authority. The initiative responds to persistent public calls to curb concealed trade, which poses economic and social challenges across Oman.
Observer
10-05-2025
- Business
- Observer
Workshop reviews Foreign Capital Investment Law
The Ministry of Commerce, Industry and Investment Promotion is working to keep pace with regional and global developments in the investment sector and to strengthen the Sultanate of Oman's position as an attractive hub for regional and international investments. This is being pursued through the development of a flexible legislative framework, well-considered incentives, and the assurance of sustainable economic growth. In line with these efforts, the ministry, in collaboration with the Oman Chamber of Commerce and Industry, organised a workshop to evaluate and review the Foreign Capital Investment Law. The initiative is part of ongoing efforts to enhance the investment environment and attract foreign direct investment (FDI). The workshop addressed key challenges and opportunities associated with the implementation of the law. Discussions included a review of incentives and facilitations offered to investors, aimed at generating quality employment opportunities and expanding the economic base, while also addressing existing legal gaps and attracting more high-value investments. The session also reviewed a number of initiatives implemented in recent years, such as the launch of the 'Invest in Oman' Lounge, the reduction of commercial registration fees for foreign investors, the removal of minimum capital requirements, and the introduction of the Investor Residency Programme, which offers streamlined entry paths for investors. Nesima bint Yahya al Balushiyah, Director-General of the Investment Services Centre at the ministry, affirmed the ministry's commitment to reviewing and improving the investment environment in line with global economic trends. She reiterated the aim of enhancing the business climate to position Oman as a preferred destination for investors. Tahira bint Sultan al Amriyah, Director of the Business Environment Facilitation and Development Department at the Investment Services Centre, highlighted the importance of the workshop in identifying potential improvements to the business environment and addressing legislative gaps in line with market requirements and national human resource development goals. She stressed that developing the business environment requires integrated efforts with other government entities to ensure a seamless and encouraging experience for foreign investors. — ONA
