Latest news with #OmanVision2040
Time of India
2 days ago
- Business
- Time of India
Gulf's next big crisis: As economies diversify, water shortages loom
TL;DR: The World Bank projects 3–4.7% GDP growth in GCC countries during 2025–26, led by non‑oil sectors such as tourism, logistics, and finance. countries during 2025–26, led by non‑oil sectors such as tourism, logistics, and finance. GCC freshwater supply is extremely low, renewable water per person often falls below 100 m³/year and climate change could cut GDP by 6–14% by mid‑century without proper action. GCC nations are boosting water recovery efforts (e.g. Dubai cut system losses from 42% to 4.6%), desalination expansion, and regional MENA investment in policy-driven water infrastructure. Balancing rapid non‑oil growth with water sustainability is the region's next big challenge. As Gulf nations charge ahead with economic diversification beyond oil, a less visible yet critical threat looms: water scarcity. With the World Bank forecasting GDP growth of up to 4.9% for the GCC in the 2025, experts warn that this expansion is precariously underpinned by dwindling water resources, exacerbated by climate change and rising consumption. Tired of too many ads? go ad free now While desalination plants and sustainability pledges abound, the Gulf's pursuit of non-oil prosperity could falter unless water security becomes an integral part of the region's growth strategy. Growth Beyond Oil: A Regional Shift While Gulf economies remain heavily tied to hydrocarbon exports, recent signals show a successful pivot: The World Bank forecasts non‑oil GDP growth of ~4.6% in 2025–26, outpacing expected oil sector contraction. A Reuters poll projects national growth rates from 3.9% (Saudi) to 4.7% (UAE) in 2025, with non‑oil activity as the engine. Exports and domestic investments are expanding in sectors like tourism, logistics, finance, real estate, healthcare, and education. This shift reflects sustained government efforts under national visions; Saudi Vision 2030, UAE Centennial Plan, Qatar National Vision, and Oman Vision 2040 spurred by increasing non‑hydrocarbon investments and globe-facing business ecosystems. Catalysts of the Economic Mix Several key developments drive this transformation: Mega‑projects & tourism : These contribute significantly through infrastructure and service sector jobs particularly in Saudi's NEOM and UAE's Expo‑linked investments. : These contribute significantly through infrastructure and service sector jobs particularly in Saudi's NEOM and UAE's Expo‑linked investments. Finance & logistics : GCC nations are strengthening their roles as regional hubs seen in Dubai's DIFC expansion, Qatar's financial reforms, and Bahrain's post-oil banking prominence . : GCC nations are strengthening their roles as regional hubs seen in Dubai's DIFC expansion, Qatar's financial reforms, and Bahrain's post-oil banking prominence . Healthcare & education : Addressing domestic demand and emerging as exportable services to the broader MENA region. : Addressing domestic demand and emerging as exportable services to the broader MENA region. SMEs & innovation: Startup ecosystems are accelerating in all GCC countries, reducing reliance on oil revenues. Water Stress: The Hidden Constraint Despite growth successes, water scarcity remains a perilous bottleneck: GCC renewable water per capita as per the World Bank is well under the 500 m³/year 'scarcity' threshold, often falling below 100 m³/year. In some GCC nations, domestic water use exceeds 500 litres/person/day, which is very high than the global average. Climate projections indicate further GDP losses, 6–14% by 2050 due to reduced water access and related shocks . Consequences span agriculture disruption, urban service stress, and heightened reliance on desalination exposing energy-water-economic vulnerabilities. GCC Responses: From Desalination to Governance Governments are taking multiple actions to address the water challenge: Desalination leadership : Gulf nations produce ~50% of global desalinated water. World Bank reports show that Saudi's SWCC accounts for 20% of global capacity. : Gulf nations produce ~50% of global desalinated water. World Bank reports show that Saudi's SWCC accounts for 20% of global capacity. Efficiency gains : Dubai Electricity & Water Authority slashed non-revenue water from 42% to 4.6% by 2023 through infrastructure upgrades. : Dubai Electricity & Water Authority slashed non-revenue water from 42% to 4.6% by 2023 through infrastructure upgrades. Reform & policy innovation : GCC states are implementing water pricing, reuse, leakage reduction, and public–private partnership pilots . : GCC states are implementing water pricing, reuse, leakage reduction, and public–private partnership pilots . Multilateral support: World Bank and UAE-led initiatives like the MBZ Water XPRIZE accelerate funding for sustainable desalination technology. Risks & Opportunities Ahead Risks Environmental : Brine discharge impacts marine life; desalination raises energy and emissions intensity. : Brine discharge impacts marine life; desalination raises energy and emissions intensity. Financial : Water infrastructure requires massive investment (~$130–140 billion annually in MENA), roughly double current levels. : Water infrastructure requires massive investment (~$130–140 billion annually in MENA), roughly double current levels. Coordination gaps: Divergent regulations, funding priorities, and water systems weaken regional resilience. Opportunities Green tech exports : Innovation in water membranes and smart meters could be GCC export drivers. : Innovation in water membranes and smart meters could be GCC export drivers. Job creation : The water and sanitation sector could generate thousands of domestic roles through infrastructure development . : The water and sanitation sector could generate thousands of domestic roles through infrastructure development . Regional cooperation: Public–private partnerships and knowledge sharing through GCC integration can strengthen sustainability and unify markets. Policy Recommendations To sustain non‑oil momentum amid water risks, GCC governments should: Raise water prices & eliminate subsidies to reduce waste. Invest in smart infrastructure like metering, pumps, and public awareness campaigns . Promote decentralised reuse systems for agriculture and urban cooling. Expand private-sector roles in cost-sharing and O&M through PPP frameworks . Coordinate regionally on desalination standards, brine management, and contingency planning via GCC bodies . The GCC's economic rebalancing through tourism, trade, tech, and services is gaining momentum, with non‑oil growth forecasted at 4–5% annually in 2025–26. However, water insecurity threatens this trajectory. Without rapid efficiency reforms, sustainable desalination, and regional integration, growth could be constrained, GDP could decline mid-century, and public finances may be strained. By integrating water-focused policies and investments into economic planning, GCC nations can ensure their non‑oil boom remains resilient, inclusive, and environmentally secure, anchoring prosperity in a desert region increasingly defined by climate urgency.
Observer
3 days ago
- Business
- Observer
Vibrant Al Ashkharah welcomes visitors
Muscat, July 16 Under the auspices of Dr Said bin Mohammed al Saqri, Minister of Economy, the third edition of the Ajwa'a al Ashkharah (Al Ashkharah Summer Extravaganza) festival was officially inaugurated on Wednesday, in the seaside town of Al Ashkharah, located in the Wilayat of Jaalan Bani Bu Ali, Al Sharqiyah South Governorate. The festival, which continues until August 9, offers a wide array of daily activities including cultural performances, musical evenings, poetry recitals, family events, interactive competitions and heritage showcases — positioning Al Ashkharah as a unique summer destination on the national tourism map. The opening highlighted several community-based initiatives and interactive programmes aimed at engaging diverse age groups while showcasing the cultural and economic potential. Guests were treated to a documentary-style presentation introducing the vision and objectives of the festival, followed by a musical performance by a local scout band. Dr Yahya bin Badr al Maawali, Governor of Al Sharqiyah South, stated that the festival has evolved into a practical model for sustainable local development, underlining the importance of seasonal tourism in stimulating the local economy and fostering community engagement. 'The real value of this festival lies not only in its programme lineup but in its ability to create meaningful partnerships between the public sector, private businesses and the local community,' he said. 'It's about activating a local ecosystem where everyone has a role — whether through small enterprises, cultural contributions, or social innovation. This edition has been particularly expansive and well- coordinated, building on the success of previous years,' he added. He emphasised that tourism must be rooted in community involvement and local potential: 'We are committed to developing a comprehensive and sustainable model for domestic tourism — one that is grounded in creativity, interaction and continuous improvement. Our aim is to align these efforts with Oman Vision 2040, ensuring that festivals like this serve as platforms for dialogue, innovation and long-term development.' Mohammed bin Humaid al Ghabshi, Wali of Jaalan Bani Bu Ali, noted that the third edition of the festival demonstrates the community's growing capacity to design and execute high-impact events. 'This year's festival has expanded its reach to include not only traditional and recreational offerings but also modern tools for economic empowerment. Youth and women are actively engaged through SMEs displays, family-run businesses and creative platforms.' The Wali added that this year's programme was carefully curated to include activities for children, families and entrepreneurs alike, turning the festival into a space that blends entertainment with education and enterprise.
Observer
3 days ago
- Business
- Observer
Moringa project launched with RO 5.3m investment
SALALAH: The Ministry of Housing and Urban Planning, in cooperation with the Ministry of Agriculture, Fisheries and Water Resources, has signed a usufruct contract for a major agricultural investment project in the Wilayat of Thamrait, Dhofar Governorate. The initiative involves the cultivation of Moringa trees over an expansive area of 10.5 million square metres in Hanfit, with a total investment value exceeding RO 5.3 million. The signing ceremony was held in the presence of HH Sayyid Marwan bin Turki al Said, Governor of Dhofar; Dr Khalfan bin Said al Shueili, Minister of Housing and Urban Planning; Dr Saud bin Hamoud al Habsi, Minister of Agriculture, Fisheries and Water Resources; and representatives from Trufud, the company tasked with implementing the project. This large-scale agricultural venture aims to integrate agriculture with processing industries and global supply chains, representing a new direction in sustainable agribusiness development in Oman. It aligns with national efforts to enhance food security while fostering environmentally responsible investments. Expected to yield annual revenues of RO 4 to 5 million through the export of Moringa-based products, the project will target high-demand international markets, including North America, Europe and Asia. In addition to its commercial potential, the initiative will create over 500 direct employment opportunities, along with numerous indirect jobs in supply, packaging and logistics. These prospects are set to stimulate local entrepreneurship and contribute to socio-economic development in the Dhofar Governorate. Environmental sustainability is also at the core of the project, with plans to plant around 15 million Moringa trees. This plantation is projected to absorb more than 400,000 tonnes of carbon dioxide annually, significantly supporting Oman's climate mitigation strategies and the goals of Oman Vision 2040. This project serves as a model for future agri-industrial investments in the Sultanate of Oman, combining economic returns with positive social and environmental impact. — ONA
Observer
3 days ago
- Business
- Observer
The role of municipalities in fostering youth entrepreneurship
Municipalities play a significant role in stimulating business and employing local residents. They also play numerous roles in promoting the economic growth of their respective countries, not to mention performing other routine administrative, logistical, economic and social tasks. Since the responsibilities assigned to municipalities in Oman were transferred to the Ministry of Interior, the municipal sector in each governorate has been working to develop the system to improve operations and provide a better level of services. What motivates me to write about the work of municipalities in the Sultanate of Oman, particularly Muscat Municipality, are the repeated complaints directed at some officials regarding the exclusion of young people's businesses from some small kiosk projects established to sell kebabs and grilled meat in certain areas of Muscat, particularly in areas frequented by citizens and tourists at various times. This exclusion creates family and social challenges for them, not to mention the difficulties and financial obligations that result from these decisions. At the same time, we find that Muscat Municipality is working to create specific locations for these young people who wish to work independently, in areas that do not harm families and the environment; and are far from people's homes, in order to ensure their comfort and privacy. However, it appears that the locations chosen by Muscat Municipality are not as frequented by tourists and customers as they are currently in tourist areas and along traffic lanes for motorists coming and going from one governorate to another. In fact, municipalities should support small youth projects if they do not disrupt traffic and public safety. In doing so, they will contribute to solving the unemployment issue in society and provide more jobs for them. Municipalities are expected to play a vital role in empowering youth and encouraging them to work in fields needed by Omani society, especially in light of Oman Vision 2040, which focuses on economic diversification and empowering youth in business. This work is complemented by supporting small and medium-sized enterprises (SMEs) and entrepreneurship for youth. This can also be achieved by providing business incubators and co-working spaces at nominal prices, in addition to offering training courses in project management and digital marketing. Municipalities around the world are now working to promote these businesses and encourage various groups of young people interested in buying, selling and farming. They encourage them to establish vertical farms or agricultural projects, provide small plots of land for modern agricultural investment in public parks they establish for pedestrians and train them in hydroponic and smart farming techniques. Municipalities also play a role in supporting community tourism projects, such as establishing "guest houses" or organising heritage tours. They provide jobs and training for young people in managing small tourism projects, such as running popular restaurants, selling traditional products and working as tour guides. They also establish programmes to collect and recycle waste such as plastic, paper, electronics, pharmaceutical waste, used tyres and others; and help them transform this waste into useful projects in furniture, decor and energy. What we need in Omani society is for municipalities to partner with national institutions to organise these activities and workshops, provide more facilities and eliminate bureaucracy. They also need to consider the work of young people by reducing licensing fees and granting them expedited permits for youth projects.
Observer
4 days ago
- Business
- Observer
73 new job titles approved in hospitality sector: MHT
Muscat: The Ministry of Heritage and Tourism (MHT), in cooperation with the Ministry of Labour (MolL), has approved 73 new job titles specific to the hotel and tourism resort sector. The initiative is part of broader efforts to organise and develop the tourism industry and enhance the readiness of the labour market to accommodate qualified and skilled national talent. The new titles have been incorporated into the Unified Gulf Manual for Occupational Classification and Description. They have been categorised according to the officially recognised economic activities within the tourism sector, covering hotels, resorts, hotel facilities, rest houses, chalets, heritage inns, and guesthouses. The move offers employers and tourism establishments a broader and more precise set of options to define their workforce needs, contributing to improved institutional performance and the development of human resources in this vital sector. The approved list includes a variety of administrative and technical positions such as: General Manager of Hotel, General Manager of Resort, Resort Manager, Procurement Director, Safety and Security Director, IT Director, Security Director, Finance Director, Events Coordinator, Reservations Supervisor, Airport Services Representative, Guest Relations Clerk, and Audit Supervisor. The Ministry of Heritage and Tourism stressed that this step reflects the ongoing coordination with the Ministry of Labour to support development in the tourism sector and create an environment conducive to growth and investment. The initiative is expected to meet the goals of Oman Vision 2040, which identifies tourism as a key pillar of economic diversification.
