On building financial sustainability and economic resilience
What are the main contributions of the National Programme for Fiscal Sustainability and Financial Sector Development, or Estidamah, in enhancing Oman’s financial sector?
MAHMOOD AL AWEINI: The Estidamah programme, launched in January 2023, has significantly modernised Oman’s financial services sector. Building on earlier reforms, it focuses on resilience, competitiveness and economic diversification in line with Oman Vision 2040. Estidamah has bolstered the banking sector by promoting financing beyond traditional government and hydrocarbons projects, fostering private sector growth through initiatives such as small and medium-sized enterprise (SME) listings, and encouraging family and private business initial public offerings (IPOs) to boost market participation.
Additionally, Estidamah has established local currency bond markets to improve liquidity and attract foreign direct investment (FDI). Efforts are also underway to elevate Oman’s capital markets from frontier to emerging market status by enhancing capitalisation and liquidity. On the public finance side, the programme integrates fiscal planning with the government’s five-year plan, modernises revenue collection through tax reforms, and develops the insurance sector to unlock its potential and attract FDI. This holistic approach positions Oman as a regional leader in financial sector development.
In what ways has Estidamah impacted Oman’s fiscal sustainability, economic resilience and risk reduction efforts?
AL AWEINI: Estidamah has strengthened Oman’s fiscal sustainability by mitigating uncertainties such as oil price fluctuations and driving economic diversification through sustainable growth initiatives. Empowering the Oman Investment Authority (OIA) to prioritise high-value investment has already delivered measurable outcomes, with further growth anticipated.
The programme ensures fiscal efficiency in key sectors like health, education and social protection, expanding services while maintaining cost control. It also emphasises disciplined debt management to enhance financial stability and preserve Oman’s investment-grade credit rating, aiming for further upgrades. As part of the 11th five-year plan covering 2026–30, the focus will shift to economic growth, job creation, fostering ICT, advancing financial technology and supporting renewable energy projects.
Which key performance indicators (KPIs) are being prioritised to measure progress towards a more diversified, sustainable and resilient economy?
AL AWEINI: The MoF has identified KPIs that focus on advancing capital markets and fostering cultural shifts within the banking sector to support SME financing. The development of alternative funding options, alongside green financing initiatives, are top priorities. Regulatory improvements to attract FDI complement these goals.
Transparency underpins these efforts, with regular updates on progress since Estidamah’s launch. An annual market progress report is planned to showcase achievements and impact. International evaluations by the IMF and global financial institutions have highlighted success in reducing the debt-to-GDP ratio, maintaining fiscal discipline and building buffers against oil price volatility. These achievements strengthen public resilience while enabling private sector-led economic diversification.
In which areas do you identify the main recent improvements in Oman’s sustainable finance ecosystem, and what further regulatory or strategic developments are expected in this area in 2025?
AL AWEINI: Oman has made substantial progress in developing its green and sustainable finance ecosystem. The MoF established the sultanate’s first Sustainable Finance Framework in January 2024, laying the groundwork for ongoing initiatives. Contributions from the OIA and the implementation of mandatory environmental, social and governance disclosure guidelines by the Muscat Stock Exchange, effective in 2025, are significant milestones.
Private sector alignment with sustainability goals and the Central Bank of Oman’s comprehensive green finance guidelines enhance the ecosystem further. Establishing Oman’s Net-Zero Centre has been pivotal in evaluating green projects and driving sustainable finance initiatives. Early successes include banks securing green funding and the Oman Development Bank working to become an accredited green funding entity.
Looking ahead, Oman’s focus on renewable energy and hydrogen projects is expected to attract substantial sustainable investment. By 2025 advancements in regulation and public-private sector collaboration will further strengthen Oman’s position as a regional leader in green finance.
